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Theratechnologies Inc T.TH

Alternate Symbol(s):  THTX

Theratechnologies Inc. is a Canada-based clinical-stage biopharmaceutical company. The Company is focused on the development and commercialization of therapies addressing unmet medical needs. It markets prescription products for people with human immunodeficiency viruses (HIV) in the United States. The Company's research pipeline focuses on specialized therapies addressing unmet medical needs in HIV, nonalcoholic steatohepatitis (NASH) and oncology. Its medicines include Trogarzo and EGRIFTA SV (tesamorelin for injection). Trogarzo (ibalizumab-uiyk) injection is a long-acting monoclonal antibody which binds to domain 2 of the CD4 T cell receptors. EGRIFTA SV (tesamorelin for injection) is approved in the United States for the reduction of excess abdominal fat in people with HIV who have lipodystrophy. Its portfolio includes Phase I clinical trial of sudocetaxel zendusortide (TH1902), a novel peptide-drug conjugate (PDC), in patients with advanced ovarian cancer.


TSX:TH - Post by User

Comment by SPCEO1on Apr 13, 2023 12:45pm
90 Views
Post# 35393297

RE:RE:RE:RE:RE:RE:RE:RE:Eurk!

RE:RE:RE:RE:RE:RE:RE:RE:Eurk!While you are correct  they cannot know 100% in advance if TH-1902 will succeed, they do have some expectation of success or they would not be bothering to proceed. So, the question then becomes what percentage chance of success is high enough to justify the board's effort to keep the management team that brought TH-1902 close to a first level of success in place at a high cost? It seems to me the  board must think there is a pretty high chance of success or they would not have given out those big option grants and bonuses. That is the positive and bulish interpretation of this compensation info. Hopefully, it is the correct interpretation and not just another fleecing of shareholders which is sadly not atypical in the corprate sector. 

If I have accurately discerned that this is what the board is actually doing, they probably should communicate that to shareholders before people start voting. It is in their own best interests as well as ours.

palinc2000 wrote:

Imo there is NO WAY they can predict the outcome of the Phase 1 b clinical trial at this time .... Pharmas would be lining up to make a bid if predicting the outcome was possible .
Being hopeful is not enough to reward mgmt before the fact

 

SPCEO1 wrote: The positive case, stated more simply, is that the board really thinks they have something in TH-1902 and are determined to keep the team that brought it this far together as they know this is the way the chances of achieving success with it are highest. The seemingly excess compensation situation and big option grants are actually a very bullish indicator in this scenario. Hopefully, that is the correct interpration of the situation and it may well be given that the opposite would have been expected by any rational board given what we shareholders can see at the moment.

SPCEO1 wrote: Forgot about that - so it is more likely then that THTX's board may be struggling to read the shareholder room.

But we shareholders don't see the whole picture as clearly as the board does since they have more info, particulalrly regarding TH-1902. We just know the stock has been decimated and we are feeling all of that while everyone else involved in the company is doing great, like really great. We may be getting rolled by the board but I suspect that is not the case and theyare actually looking out for our best, long term interests even if it feels like they just kicked us in the head. I imagine the board feels like the management team already in place is a pretty good one, better than THTX deserves in its current weakened state (and I am inclined to agree with that - the additon of John Leasure seems to havhe really strengthened the situation too).So, they are likely doing what they can to retain them as replacing them with similar talent would be quite a tall order right now. That means making them an offer they can't refuse and it looks like that is what they hahve  done, Moreover, they likely are very hopeful, as we are, that TH-1902 will turn into something special before too much longer and they need to keep the team intact until things brighten up for THTX on that front sometime later this year and into 2024. That is my best guess as to what the board is thinking and, if things do brighten up as hoped for, it will likely prove to have been an acceptable strategy. If not, well, then it will look pretty ugly. Hopefully, there is yet a happy ending on the horizon for shareholders but there is no guarantee of that. I suspect the AACR presentation could start some balls rolling in a more positive direction and change the narrative around THTX in the next several months if partnerships (plural) do develop as various drug companies with cancer drugs take a flyer on if TH-1902 can get them better results.  

But, again, if TH-1902 eventually amounts to nothing this will all look like a greedy corporate leadership group hosing shareholders even if that is not actually the case. 

palinc2000 wrote: The apparent stable G&A expense in Q 1 was from the cancellation of activities in Europe according to what Dubuc said during the CC part of which was offet with increses in this side of the pond



SPCEO1 wrote: That info is just what I had hoped would not be released but was afraid the heads management wins, tails shareholders lose deal would be in place as is typically the case across the corporate world. However, the salary info is not something that could have been adjusted as the bad cancer news came out on the first day of the fiscal 2023 year and that money had already been paid. SGA expenses in the first quarter were pretty flat so perhaps they instituted a salary freeze for 2023, admittedly at an already very high level. The cash bonuses is perhaps where they could have made an adjustment although I am not certain when those are paid. But if THTX was indeed blindsided by the pause news, it is possible those were already paid before the end of the fiscal year and, therefore, before the pause news. It would be good to hear that big adjustments to executive compensation have been made in 2023 but given they made sure to hold the first quarter conference call a day before teh proxy was released, I suspect that may not be the case.

 

palinc2000 wrote:

I know the CEO is in a difficult position  caused by many factors some of  which may not be his fault but for Ch+**st  sake just basic human decency would have dictated at minimum a FREEZE in compensation for management and Board Members and a decrease in the number of Directors .
 

Show some compassion not your personal greed


palinc2000 wrote:

I suggest you read the compensation related info during Happy Hour ...... snd make it a double!!!



 


 










 



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