TherapeuticsMD (NASDAQ: TXMD) announced on Sunday that it had entered into a licensing agreement with Australian specialty pharmaceutical company, Mayne Pharma Group. As a part of this agreement, Mayne will commercialize TXMD’s products in the United States.
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In addition, the women’s healthcare company has also agreed to sell certain assets to Mayne Pharma.
As a part of this transaction, TXMD will receive an upfront cash payment of $140 million for the license grant and sale of certain assets, and an additional around $13.1 million, subject to customary adjustments, for acquired net working capital. Moreover, TXMD will also “receive a 20-year royalty stream tied to Mayne Pharma’s net sales of the products.”
Tommy Thompson, Executive Chairman of TherapeuticsMD commented, “This transaction will allow us to repay in full our debt to Sixth Street Partners and redeem our preferred stock from Rubric Capital Management, while also establishing a future royalty revenue stream for our common shareholders. We believe that Mayne Pharma has the experience necessary to fully realize the promise of our products as we work together to improve patient care.”
The transaction is likely to close by the end of this year.
Shares of TXMD stock have already lost more than 70% in value in the past year.
