Theratechnologies Inc T.TH

RE:RE:RE:Letter

[PinnacleX]

Wino115 wrote:

A helpful change in approach we have not seen before, showing their concern for the overly-negative market reaction. While it would have been helpful on the day of the pause, they clearly would not have had these actions and responses worked out. No way they could have just come out with that punchy 13-19% sales growth on the spot. For conservatism sake, I'd stick at the low end which is still a nice gain of a free $10mil to boost sales.

They've listened to shareholders and this is a very helpful start in underlining there is a strong commercial business which gives them the flexibility to cut costs to hit positive EBITDA for the upcoming year. That has far more value than the market is giving them today.  It's a reasonable path to support a $2-$3 valuation regardless of oncology trial and that's what they have to assume now.

I like the fact they have a number of outside experts looking at the full data to inform the plan for restarting the trial in a way to optimize efficacy. I was hoping they'd get expert objective eyes looking at data.  It is common for the FDA to submit questions before a restart so that isn't a big deal, as they stated they were already planning to answer those questions to satisfy themselves and the investigators. We'll learn a lot more and it won't just be from their labs. It's got to be tough to see such great preclinical run into early issues. 

It's hard to know, but it sounds like they are sort of reminding folks this is the taxol drug but there is a peptide platform behind this. It's their standard description, but looks more like a reminder since they didn't need to tack it on the end. It would be great to hear what parts of the POC they theorize are valid from the data and where issues may lie. 

All in, every shareholder now knows the path to profitability through increased sales and cost control and the deep dive into the trial data to develop a useful plan going forward. It would be great if they could figure out why those responses they saw worked versus those that didn't. Was it the previous drugs they used that thwarted taxol working? So many questions they can ask and will have to be analyzed. I could see it taking a month or two since they should have all the data now,

Hope this at least underlines to investors there's a profitable company in there as costs are massively lowered. Let's get that $2 handle back!

 

Hope this at least underlines to investors there's a profitable company in there as costs are massively lowered. Let's get that $2 handle back!

Says it all, the delusional are still strong here.