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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 Nov 14, 2023 11:49am
174 Views
Post# 35734542

RE:Fair Value

RE:Fair ValueAssuming cash of $48 million, which is likely a bit generous, Marathon debt of $60 million and a market cap of $62 million currently, the Enterprise Value (EV) is $74 million (Market cap plus net debt of $12 million). Sales are likely to be around $85 million in 2023. EV/Sales below 1X is obviously quite cheap. It is hard to know how to value THTX on this metric at this point given management's failure to create value for shareholders and then sabotaging shareholders in this last deal. Something below the normal expectation would be expected and I am not sure what exactly that might be at this point. Let's just use 2X for arguments sake. So, that would be $170 million in market cap less $12 million in net debt gives us $158 million attributed to the equity component or $3.22 per share (using 49 million shares).

If TH-1902 shows promise, however, that would change everything for the better. Actually. EV/Sales would no longer be the appropriate way to value THTX if there were good TH-1902 results.
juniper88 wrote: After the dust has now settled, and with the spirit of looking forwards instead of backwards.  Does anyone want to take a stab at what ought to be the fair value of THTX right now?

Market cap seems to be just under USD 60 million, right now.  Is that too high? Too low?  Why?


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