Theratechnologies (TH) AI Stock Analysis

• Market Cap: C$100.24M
• Dividend Yield: N/A
• Average Volume (3M): 52.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 6.07%
• EPS Growth: 80.33%
• Country: CA
• Employees: 103
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -0.25
• Shares Outstanding: 45,980,020
• 10 Day Avg. Volume: 39,480
• 30 Day Avg. Volume: 52,397
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.81
• Price to Cash Flow (P/CF): -76.90
• P/FCF Ratio: 1.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.80
• Price Target Upside: 75.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Theratechnologies faces significant challenges, primarily due to its financial performance marked by profitability issues and high leverage, as well as bearish technical indicators. While recent earnings call and corporate events indicate strategic improvements, they are not sufficient to offset the current financial and market pressures.

Positive Factors

Financial Strength

Theratechnologies improved its financial footing with debt refinancing and approval of two batches of EGRIFTA SV.

Revenue Growth

EGRIFTA SV remains the key revenue driver, demonstrating a 26.6% year-over-year increase.

Negative Factors

Manufacturing Challenges

The third-party manufacturing site for EGRIFTA SV may impede the approval of Theratechnologies' prior approval supplement, leading to potential supply shortages.

Theratechnologies Business Overview & Revenue Model

Company Description

Theratechnologies Inc. is a biopharmaceutical company focused on the development and commercialization of innovative therapies addressing unmet medical needs in metabolic disorders, oncology, and other therapeutic areas. Based in Canada, the company specializes in the development of novel treatments that leverage its expertise in peptide technology to provide solutions for complex diseases.

How the Company Makes Money

Theratechnologies makes money primarily through the commercialization of its proprietary products, including EGRIFTA SV (tesamorelin for injection) for the reduction of excess abdominal fat in HIV-infected patients with lipodystrophy, and Trogarzo (ibalizumab-uiyk), an antiretroviral therapy for multidrug-resistant HIV-1. The company's revenue streams are largely derived from product sales, licensing agreements, and strategic partnerships with pharmaceutical companies. Additionally, Theratechnologies may engage in research collaborations and receive milestone payments and royalties from commercial partners. The company's financial success is influenced by its ability to expand market reach, secure regulatory approvals, and optimize its product distribution channels.

Theratechnologies Financial Statement Overview

Summary

Theratechnologies shows some signs of improvement in revenue and cash flow, but persistent profitability issues and a highly leveraged balance sheet pose significant risks. Continued focus on improving operational efficiency and reducing leverage will be critical for future stability and growth.

Income Statement

Theratechnologies has shown a modest revenue growth rate of 5.02% from 2023 to 2024, indicating some positive trajectory in sales. However, the company struggles with profitability, as evidenced by a negative net profit margin of -9.67% and an EBIT margin of 9.52%. The gross profit margin remains healthy at 76.18%, but the negative net income suggests ongoing operational challenges.

Balance Sheet

The balance sheet reveals significant financial leverage with a high debt-to-equity ratio due to negative stockholders' equity, indicating potential financial instability. The equity ratio is also negative, reflecting a capital structure heavily reliant on debt. This poses a risk to financial stability and limits flexibility.

Cash Flow

The company has improved its free cash flow position to $879,000 in 2024, marking a significant turnaround from negative free cash flow in prior years. The operating cash flow to net income ratio is positive at 0.29, showing some efficiency in converting earnings to cash flow, but overall cash flow generation remains a challenge.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
85.87M	81.76M	80.06M	69.82M	66.05M
	Gross Profit
65.42M	62.13M	53.78M	46.56M	39.15M
	EBIT
8.17M	-10.63M	-39.91M	-25.24M	-17.96M
	EBITDA
6.88M	-8.91M	-27.83M	-17.25M	-9.18M
	Net Income Common Stockholders
-8.31M	-23.96M	-47.24M	-31.73M	-22.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.62M	40.85M	33.07M	40.35M	20.77M
	Total Assets
53.34M	77.77M	93.26M	119.21M	100.14M
	Total Debt
45.61M	58.97M	66.71M	56.74M	55.38M
	Net Debt
39.71M	24.87M	42.85M	36.35M	42.65M
	Total Liabilities
78.61M	98.64M	115.83M	101.45M	96.92M
	Stockholders Equity
-25.27M	-20.87M	-22.57M	17.76M	3.22M
Cash Flow		Free Cash Flow
879.00K	-7.50M	-15.68M	-14.64M	-13.59M
	Operating Cash Flow
2.38M	-5.68M	-14.69M	-14.48M	-13.55M
	Investing Cash Flow
942.00K	1.11M	8.68M	-12.45M	4.78M
	Financing Cash Flow
-21.49M	14.78M	9.66M	34.56M	-7.23M

Theratechnologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TH, the sentiment is Negative. The current price of 2.17 is below the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.45, and above the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 19.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TH.

Theratechnologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	67 Neutral	C$322.89M	―	-0.53%	5.15%	-21.32%	82.85%
HLS	63 Neutral	C$124.63M	―	-24.49%	―	-8.60%	21.06%
BHC	54 Neutral	C$3.71B	―	3.60%	―	11.61%	92.72%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%
ONC	44 Neutral	$77.35M	―	-184.69%	―	―	27.78%
TH	40 Underperform	C$100.24M	―		―	6.07%	80.33%
PHA	39 Underperform	C$3.61M	―	-160.58%	―	44.96%	-827.30%

Theratechnologies Corporate Events

Theratechnologies Achieves Record Financial Results and Secures Future Growth

Theratechnologies reported record financial results for the fiscal year 2024, achieving a positive Adjusted EBITDA of $20 million, surpassing its guidance. The company also recorded a quarterly revenue of $25 million and an annual revenue of $85.9 million. New credit facilities have been secured, freeing up $19 million in cash for 2025, and the company has in-licensed two new Ionis assets in Canada to drive long-term growth. The company faced a temporary supply disruption of EGRIFTA SV® due to a shutdown of its contract manufacturer’s facility, but has resumed distribution after FDA approval to sell newly manufactured batches.

Theratechnologies Resumes EGRIFTA SV® Distribution Following FDA Clearance

Theratechnologies has resumed the distribution of EGRIFTA SV® after receiving clearance from the FDA to release two new batches. This move ensures the availability of the treatment for people with HIV in the United States, with the FDA’s review of the Prior Approval Supplement continuing and expected to conclude by April 18, 2025.

Impending Shortage of Theratechnologies’ EGRIFTA SV® Amid Manufacturing Shutdown

Theratechnologies has announced an impending shortage of its product, EGRIFTA SV®, due to a voluntary shutdown of its manufacturing facility in 2024, with a shortage expected to affect patients by mid-January 2025. The company has filed a Prior Approval Supplement with the FDA and is awaiting responses to facilitate the release of new batches to pharmacies, emphasizing its commitment to affected patients and ongoing collaboration with the FDA to resolve the issue.

Theratechnologies Seeks FDA Approval for EGRIFTA SV® Changes

Theratechnologies has filed a Prior Approval Supplement with the FDA for changes in the manufacturing environment of EGRIFTA SV®, with existing inventory expected to meet demand until mid-January 2025. The company is in discussions with the FDA to expedite the release and prevent a potential product shortage. Theratechnologies will keep the market informed of any significant developments.