Theratechnologies Inc T.TH

Just thought I would pass this along

[SPCEO1]

I had either forgotten about these terms of the deal with Taimed or they were included in a revised agreement, probably the former. It is good to remember that $3 million will be owed in two equal annual installments once the IV Push begins sales. Given how long it has taken Taimed to get this done, a significant discount should be offered!

Also, I have not heard anything about a 1 month version of Trogarzo being studied recently, but the cost of studying it for TH could be quite extreme according to the contract.

Here are the details of the contract that I am referring to:

We also agreed to pay TaiMed a development milestone of US$3,000,000 upon the first commercial sale in the North American Territory of a bi-weekly intramuscular, subcutaneous or intravenous-push (either fast or slow) injection formulation. This milestone will be payable in two annual equal installments of US$1,500,000 each, with the first one being paid 30 days after the first sale of such new formulation in the North American Territory, while the second one will be paid 12 months thereafter.
 

We also agreed to pay TaiMed an additional development milestone as a result of the potential conduct by TaiMed of a phase III trial using Trogarzo® with a once every four-week intramuscular, subcutaneous or intravenous-push (either fast or slow) injection formulation. This development milestone would be equal to 50% of all costs associated with the development and approval of such new formulation, subject, however, to a maximum of US$50,000,000. TaiMed and we must agree on the amount of the milestone after taking into consideration the size of the market for this new formulation of Trogarzo® and the market exclusivity related thereto. The TaiMed Agreement contains a provision dealing with a disagreement between the parties on the determination of the amount of this development milestone. This development milestone would be paid quarterly, based on a percentage of net sales then generated by the sale of Trogarzo® using this new formulation, and would include a payment of interest on the principal.

[Wino115]

Ouch... given THTX is the only real source of their income I doubt they'll discount it and they may ramp up the once a month  given how large that cost split and milestone is.  Given the slow development of the market, I would assume on it's own THTX would not spend money to further develop the drug until it's got a much larger user base -- like 4-5x larger at a minimum (1500

[scarlet1967]

Considering the sales of Trogarzo although improving would probably not coming close to the initial 4000 patients one has to wonder what would be the financial incentive for both companies to move on with a costly protocol for monthly administration of the drug. I guess they both need to re access looking at how much of the difference the monthly administration's contribution to revenues would

[SPCEO1]

TH/Taimed were leaders with their 2 week adminstration but the HIV market is moving past them now with 1 month adminsitration cycles. I doubt that causes them to change what they are doing given the small size of the market but it is something to keep in the back of your mind for possible, if unlikely, future developments. 

[Wino115]

I fully agree with the Rightious Indignation and we shouldn't forget.  I have to say these option deals, if newish, are pissing me off too. I thought it may have just been the one for the new director taken on  last year but it appears to be more.  They should be buying shares with their money not taking free option grants if they are doing this across the board.  Qwerty -

[scarlet1967]

Another thing to consider is if they go ahead with subcutaneous biweekly injection patients can administer the drug no need to attend clinics. As per the terms they will pay quarterly towards the principal based on the percentage of the sales plus interest( which should be based on low current rates). So although it really doesn't make sense to get the committed to huge cost of the protocol

[jfm1330]

I am tired of reading about anger, frustration or indignation about the last financing. What's the point of repeating it over and over? Hey! We know it! If someone thinks the BOD and management are crooks and/or a bunch of incompetents, just sell the stock and move on. If Thera is going to finally be a success story, this financing will only be one event in a serie of events, some totally in

[qwerty22]

Let's assume they need another financing if they're funding a NASH Ph3, and that will likely be bigger. If this financing and the next year helps the SP get to a good place and they do that 2nd financing then maybe we have to see the overall strategy as an average of the two financings. Just tryin' to shine the turd!  

[ANALIAS00]

I like the idea. They need to score high ... LOL

[jfm1330]

Good point, I also thought about that. The last financing is a bridge. Burn rate is high, meaningful news are at least six months away, maybe more, and NASH program will cost a ton.

[SPCEO1]

There will be another financing, maybe two, if they don't raise cash via partnerships to complete the NASH phase III and do cancer too. Still, the average price of the two offerings you envision should have been much higher with more competence applied to the situation. I would have felt a little better if they had raised $20 million instead of $46 million with the intention of raising more at

[palinc2000]

If you are tired maybe you should go to bed and get some sleep!!!  

[ANALIAS00]

"...insurance..." Very bad comparaison. Financing was required we all agree on that. That is not the point. The point is they should and could have managed to find a better deal. They did not. That deal is not even close to be an acceptable deal. We have all reasons to question that deal, to be upset and to say it again and again. Even if the SP reach 10$ it will remain a bad deal. But

[jfm1330]

Sorry. This is what you believe, but the reality is that you don't know. And given the fact you believe that, means you also believe the direction of this company is incompetent, at least on the financial side. So why are you still in? Personnally, I think they are competent, and after analyzing everything afterwards, I decided to stay in.

[ANALIAS00]

I stay because I am still making a buck and I do believe I can make another one. What pissed me off, and this is what you pretend not understand, is that I could have made 1.5 and could be making 1.5 more. And yes I am worry about their capability to sign the best deal for me (shareholder) next time. And I dont want to think to much at a friendly takeover. They seem to be very easy or loose to

[jfm1330]

Please, stop talking about Warren Buffet when talking about a speculative biopharma company. Buffet never invested in this kind of speculative companies. Also, if stock corporate options programs are making are making you sick, forget the the biotech sector. This is everywhere. Do I like it? No. But this is the way it is, and talking specifically about Thera, much more options given through this

[palinc2000]

JMF is a real joke!!!! He  is  the only one on nthis Board who posted that his dear  dear friend Luc had a similar approach as Warren nBuffet   LOL

[scarlet1967]

Ok in my opinion the past failed attempts to achieve financial success should be a lesson to learn going forward rather than giving up and it looks like that's exactly what the company started doing. Again in my opinion you can't time the market so short to medium in and out game is much more risky than long term investment. Jim you seem to be so persistent with your fixated opinions, is

[jfm1330]

Strange that you are saying that. I am the one here that changed his opinion on that deal. I was very disapointed just after it, and now I understand it better.

[SPCEO1]

The other option from selling the stock and moving on is to vote against some or all of the board. We are the bosses here, not them. If they abuse the confidence we have placed in them you do not need to sell and run away - you can send them away. Which makes much more sense in this case since the outlook for the company is very intriguing. Since the voting does not take place for some time, it

[bfw]

  The argument will be the share price at the time of the AGM. Sit tight. bfw

[SPCEO1]

That is exactly the kind of thinking that I am afraid of and is also what a leadership team who just kicked your teeth out is counting on. Don't be that foolish. What has TH's leadership team shown you about their character in such matters is that your interests are not at the forefront of their thinking like they should be. Either that or they are incommpetent and/or are overly risk

[bfw]

There's a funny thing that happens when a company dilutes itself. Those currently invested also have the opportunity to add shares on the open market to maintain the same % holding of the company. With TH, one could have added below $3 with those shares currently being up about 50% in a short time period. Life is like a box of chocolates....I guess I better go see the dentist

[scarlet1967]

Yes but we wouldn't get the warrants right?

[bfw]

Correct. Shares at $2.90C would have been sweet enough for maintaining an ownership percentage. The warrants go to the connected. I have some warrants on other biotech stocks but not here. bfw

[SPCEO1]

Sorry, you will struggle to defend the indefensible. There are clearly some positives that come from a better financed company and by bringing along much needed US institutional shareholders. But those seem more positive than they should only because the company failed in gaining a higher share price via much, much cheaper more conventional means (effectively selling their very good story to

[scarlet1967]

How can anyone who has been holding this company's shares for the last decade defend granting options to board members/management. They just started to support the SP by decent marketing but we long term investors are still the big loosers in the middle of one of the longest bull markets in the history of bull markets. It's about time for the company to take care of their investors rather

[SPCEO1]

I would be happy to give Christian Marsolais another huge option grant this year. He has really done the job for shareholders. 

[scarlet1967]

I believe both the CMO and CEO done a great job so far but looking at the SP in the last few years I still think a public company should first make sure their embattled investors get taken care of before their employees.

[scarlet1967]

Like you said it's important the company shows not by words but actions they value long term investors, the lucrative deal being awarded to new investors followed by options granted to the board members isn't exactly what I would call valuing your investors.  

[scarlet1967]

I wonder how much warren Buffet pays himself or has paid himself during last few decades?? Has he been granting options to himself over the years or let the money stay in the company?

[Wino115]

I think you know the answer.  He doesn't believe in stock options. 

[bfw]

  Berkshire has underperformed the S&P for a long time and Buffett has not made any good stock picks lately other than Aaple (very late) and BYD. Most of his success in the last 20 years has come from his preferential treatment from his govt friends (ie Goldman Sachs deal etc). It's not hard to make $ when the government basically guarantees it! Honestly, he should retire

[scarlet1967]

No I didn't know but I could bet what the answer was. Also bfw people like him never retire not specifically/entirely for the money but he loves what he does which is doing what he has been doing all his life and making money for himself and his SHAREHOLDERS. 

[bfw]

But that's the whole point. His shareholders would have been better off selling 15 years ago and putting it all in an S&P ETF ;) Comparatively, he lost his SHAREHOLDERS money and should retire :) bfw

[scarlet1967]

I am not talking about his performance but his intentions.

[jfm1330]

SPCEO, I am one of the oldest here, old enough to remember that you were strongly against a financing deal in the US, the first time they went to the NASDAQ, under John Huss, remember him? I think the deal was around 4$ a share for tens of millions of dollars, and it was finally canceled, and you were very happy about that, because again, you felt that the price per share was not high enough, too

[realitycheck4u]

This post has been removed in accordance with Community Policy

[SPCEO1]

So, what you seem to be suggesting is it was my fault that Egrifta sales were far worse than anticipated back then, as that was the main reason the company's stock price fell. I don't recall having much to do with that. I also don't recall having anything to do with hiring John Huss, who clearly did not work out. And while I was against that offering that would have allowed the company

[jfm1330]

You understand the point I made very well. You were against a financing deal and that nearly cost the life of the company. That was not your decision but you agreed with it, as you now disagree with the last deal. You were wrong on that. You were not cautious enough in your evaluation of the risks and the real value of the company back then. Cash is oxygen for a R&D company and Thera is now

[realitycheck4u]

This post has been removed in accordance with Community Policy