Theratechnologies(US:THTX)2023-09-26 15:44Financial Data and Key Metrics Changes - The company reported third-quarter revenues of $21 million, recovering from a difficult second quarter impacted by inventory buildup [39] - Adjusted EBITDA for the third quarter was $2.2 million, a significant improvement from negative $3.9 million in the same period last year [69][75] - The company ended the third quarter with $22.9 million in cash, bonds, and money market funds [58] Business Line Data and Key Metrics Changes - Net sales of EGRIFTA SV reached $13.2 million in Q3 2023, up from $12.9 million in Q3 2022, driven by a higher selling price [55] - Trogarzo net sales in Q3 2023 amounted to $7.7 million, a decrease of 3.3% year-over-year, primarily due to the cessation of commercialization in Europe [43] Market Data and Key Metrics Changes - The company is seeing increased interest from healthcare providers in treating patients with excess visceral fat, which is expected to drive future growth [40] - The company anticipates a strong Q4 based on current trends and historical performance [5] Company Strategy and Development Direction - The company is focused on maintaining a strong cash balance and discipline around long-term financial objectives, with a goal of revenue strength and improved profitability [37] - The company is exploring bolt-on acquisitions and partnerships, particularly in HIV and adjacent therapies, to enhance its commercial portfolio [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing new patients and converting them into prescriptions, paving the way for a strong 2024 [6] - The company is optimistic about the upcoming FDA approval for the IV Push administration of Trogarzo and the potential for the intramuscular formulation [40] Other Important Information - The company has modified its loan covenants with Marathon, reflecting increased confidence in its ability to execute its goals [38][76] - R&D expenses decreased by 36% in Q3 2023 compared to the same period last year, primarily due to lower spending on oncology programs [44] Q&A Session Summary Question: Was there a pullback in volumes over the summer? - Management noted that while there was early-year churn in the patient base, overall growth in the total patient base is now above last year [3] Question: What is the expectation for Q4 revenue? - Management indicated that Q4 revenue is expected to be strong, primarily driven by volume, with no price increases planned [4] Question: Can you discuss the quality and type of assets being considered for expansion? - The company is looking at HIV and adjacent businesses, as well as rare disease products that fit its model [7][8] Question: What is the expected impact of the F8 formulation on revenue growth? - Management believes the F8 formulation will facilitate patient capture and improve the patient experience, contributing to revenue growth [12][13] Question: What are the expectations for R&D spending as enrollment picks up for the Phase 1 trial? - R&D spending is expected to be staged, with a focus on partnerships for future phases of development [66]