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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 THobsvon Oct 26, 2023 12:50pm
113 Views
Post# 35702408

RE:Consider this

RE:Consider thisThe market cap is $50mm, the share count just isn't updated yet. The EV is ~70mm, still a depressed price relative just to sales, but 1) we have less confidence in those sales given recent actions, 2) we should have a lot less confidence in management given this panicked and highly dilutive offering at the lows and 3) the upside to equity with a more normal valuation will be lower, because equity is a much larger % of the EV. Still 100% equity upside to a 1.5x EV/Sales multiple, but it does feel like any more material gains require options (1902, Nash) to pay off, and we have no new information there. The company still may not be stable enough to warrant a much higher multiple of sales.

I'd take more confidence in the "smart institutional investors funding at $1" if this weren't a government entity that perhaps has some kind of ESG/Impact angle and isn't a specialist in this space. Less confidence in their valuation work and their governance/oversight.

The main issue, as noted by so many on this board, are the continued missteps and poor communication and decision making of the management team. Cheap stock but with falling confidence in a management team with little regard for investors and poor capital markets expertise.

If tax loss trading - a reminder to do so on days where there is real volume - today is one. Could do a portion from earlier purchase lots to have maximum impact while not impacting your position too much.

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