Theratechnologies(US:THTX)2023-02-28 19:32Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2022 were $21.4 million, reflecting a 14.2% growth compared to Q4 2021 [35] - Annual revenues reached $80.1 million, representing approximately 15% growth in line with 2022 revenue guidance [35] - Net loss for Q4 2022 was $7.9 million, an improvement from $9.9 million in the same quarter last year [48] - The company anticipates revenues for full year 2023 to be between $90 million and $95 million, indicating growth of approximately 13% to 19% compared to 2022 revenues [10][46] Business Line Data and Key Metrics Changes - Trogarzo revenues in Q4 2022 were just shy of $7 million, up 16% from $6 million in the same period of 2021 [20] - EGRIFTA SV sales were $14.5 million in Q4 2022, up 13.4% from the same period last year [45] - R&D expenses amounted to $9.5 million in Q4 2022, compared to $8.7 million in the same quarter last year, largely due to higher spending in the oncology program [21] - Selling expenses decreased to $7.8 million in Q4 2022 from $8.2 million in the same period last year, attributed to exiting the European market [47] Market Data and Key Metrics Changes - The macro environment for biotechs has been challenging, with the sector losing an average of 40% of market value over the last 18 months [11] - The company noted a significant investor reaction to the pause in enrollment for the TH1902 Phase I clinical trials, which halved its market cap [11][12] Company Strategy and Development Direction - The company plans to focus on its growing commercial business and has built a strong team to drive growth [13] - There is an emphasis on exploring accretive opportunities from products that may no longer fit larger firms' portfolios, particularly in HIV or adjacent areas [15] - The company aims to achieve positive adjusted EBITDA by the end of the fiscal year through tight expense management and revenue growth [10][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the difficult operating environment for biotechs but expressed confidence in the company's strategic decisions and future revenue growth [11][19] - The company is optimistic about the potential for partnerships in the NASH program, citing a favorable shift in the market context [65] - Management reiterated the commitment to resume the TH1902 clinical trial with an improved protocol to increase the probability of success [18][38] Other Important Information - The company has entered into an agreement with the World Orphan Drug Alliance for the distribution of EGRIFTA SV into 41 countries [15] - The completion of several important projects is expected in the first half of 2023, including the development of the IM mode of administration of Trogarzo [23] Q&A Session Summary Question: Can you provide additional color on potential partners for Phase III NASH opportunity? - Management indicated that they are looking for global partnerships and have developed a protocol that satisfies both North American and European agencies [55] Question: How are you thinking about OpEx in relation to fourth quarter numbers? - Management stated that they intend to drive leverage P&L moving forward, with top-line growth expected to outpace expenses [66] Question: What would be required for the EGRIFTA SV HFS? - The HFS requires changes to the instruction for use, and the company is ready to conduct the study with timelines on track for mid-year submission [72] Question: What are the next steps for the development of the intra-muscular formulation of Trogarzo? - The trial has been completed, and the focus is on completing blood analysis and statistical analysis for FDA submission [75] Question: Can you expand on the potential new products adjacent to HIV? - The company is open to acquiring approved products that are deprioritized by larger firms, ideally in the rare disease space [79][80]