Theratechnologies(US:THTX)2024-10-10 14:48Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $7.2 million and a net profit of $3 million for Q3 2024, demonstrating a significant turnaround [7][22] - Revenues for the quarter increased by 8% year-over-year, driven primarily by EGRIFTA SV, which saw a 27% increase in net sales compared to Q3 2023 [7][18] - The company revised its revenue guidance for 2024 to between $83 million and $85 million, while increasing adjusted EBITDA guidance to $17 million to $19 million [9][23] Business Line Data and Key Metrics Changes - EGRIFTA SV net sales reached $16.7 million in Q3 2024, up from $13.2 million in the same quarter last year, reflecting strong growth in enrollments and unique patients [18] - Trogarzo net sales decreased to $5.9 million in Q3 2024 from $7.7 million in the same quarter last year, attributed to competitive pressures [18][19] Market Data and Key Metrics Changes - The company noted that EGRIFTA SV has recorded its best performance in recent history, capturing patients and new prescribers at an unprecedented rate [7] - Despite challenges, Trogarzo sales have stabilized, and the company does not expect further declines in the upcoming year [8][19] Company Strategy and Development Direction - The company is focused on commercializing innovative treatments and has adapted its cost structure to support this strategic pivot [6][10] - There is an emphasis on finding new products to market and entering partnerships, leveraging the company's experience with EGRIFTA and Trogarzo [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in avoiding patient-level impacts from supply constraints and anticipates making up for sales not recorded in Q4 2024 in early 2025 [11][12] - The company is optimistic about the resubmission of the F8 formulation of Tesamorelin to the FDA by the end of November [13] Other Important Information - The company is preparing for a potential drug shortage by managing inventory closely and has multiple manufacturing slots scheduled [25][27] - The cash position at the end of Q3 2024 was approximately $39 million, indicating a strong financial footing [23] Q&A Session Summary Question: Can you provide any color on the remediation efforts being undertaken by the manufacturer? - Management confirmed ongoing discussions with manufacturers and expressed confidence in the timeline for resuming production [25][26] Question: Are you only looking at commercially available assets for new products? - The company is open to both in-licensing and acquiring drugs, focusing on compelling value propositions [31][32] Question: Do you plan on setting up a backup facility for EGRIFTA? - Management indicated that they do not plan to set up a backup facility but will build a solid inventory instead [32] Question: What is the expected timeline for the final data on TH1902? - The final analysis is expected towards the end of this year [35] Question: How will you ensure the sustainability of EBITDA and bottom line performance? - The current operating structure is deemed ideal for sustaining growth without additional costs [39]