TherapeuticsMD Announces Second Quarter 2014 Financial Results

TherapeuticsMD Inc. (NYSE MKT:TXMD), a women’s healthcare company, today announced its financial results for the quarter ended June 30, 2014.

Second Quarter 2014 and Recent Developments

• Net revenue increased to $3.8 million from $2.1 million for the prior year’s quarter
• Net loss was $10.9 million compared with $6.0 million for the prior year’s quarter
• Received notification of issuance for two additional patents regarding combination hormone therapies generated by the company’s SYMBODA^™ technology
• Received positive input from FDA regarding advancement of the phase 3 study for TX-004HR (VagiCap^™), the first softgel vaginal suppository for treatment of vulvar vaginal atrophy ("VVA")
• Ended the quarter with $35.6 million in cash and recently completed $46 million equity offering

"During the second quarter, we continued recruitment in the ongoing REPLENISH^™ phase 3 study for our combination hormone therapy pill, engaged a contract research organization to start up our phase 3 study of VagiCap in the VVA indication, and strengthened our intellectual property position with notification of two new patent allowances," said TherapeuticsMD CEO Robert G. Finizio. "More recently, we’ve solidified our cash position through a recent equity offering, providing us with additional resources to advance our ongoing programs and support our earlier stage pipeline, including novel transdermal product opportunities that leverage our proprietary SYMBODA technology."

Summary of Financial Results

For the second quarter of 2014, net revenue was $3.8 million compared with $2.1 million during the prior year period. This increase was largely driven by continued growth of the company’s current women’s health products, including the launch of additional prenatal vitamin products.

Cost of goods sold increased to $0.9 million for the second quarter of 2014 compared with $0.5 million for the prior year quarter.

Total operating expenses for the second quarter of 2014 were $13.8 million, compared with $7.2 million for the prior year quarter. The increase was primarily due to higher research and development (R&D) expenses related to late-stage clinical trials for hormone therapy product candidates. R&D expenses for the second quarter of 2014 were $8.2 million, including clinical costs associated with multiple phase 3 clinical development programs, compared to $1.7 million for the prior year quarter. Sales, general and administration expenses for the quarter were $5.5 million, relatively flat compared with the prior year quarter.

Net loss was $10.9 million for the second quarter of 2014, or $0.07 per basic and diluted share, compared with $6.0 million, or $0.05 per basic and diluted share, in the prior year quarter.

At June 30, 2014, TherapeuticsMD had cash of approximately $35.6 million, compared to approximately $54.2 million at December 31, 2013. The company recently completed a public offering of shares of its common stock for gross proceeds of approximately $46 million. The proceeds will be used toward development of the company’s late-stage pipeline of novel hormone therapies and to support advancement of its earlier stage and preclinical programs.

As of August 4, 2014, there were 155,807,765 shares of the company's common stock outstanding.

Conference Call Today

As previously announced, TherapeuticsMD will host a conference today to discuss these financial results and provide a business update which may include forward-looking statements. Details for the conference call include:

About TherapeuticsMD

TherapeuticsMD Inc. is an innovative healthcare company focused on developing and commercializing products exclusively for women. TherapeuticsMD is developing advanced hormone therapy pharmaceutical products based on novel technologies that enable delivery of bio-identical hormones through a variety of dosage forms and administration routes. The company also manufactures and distributes branded and generic prescription prenatal vitamins, as well as over-the-counter vitamins and cosmetics, under the vitaMedMD^® and BocaGreenMD^® brands. More information is available at the following websites: www.therapeuticsmd.com, www.vitamedmd.com, www.vitamedmdrx.com, and www.bocagreenmd.com.

Except for the historical information contained herein, the matters set forth in this press release, including statements relating to future events or performance, including statements regarding the company’s performance; the significantly strengthened cash balance; the combination and VVA therapy programs advancing on schedule; the receipt of additional patents generated by the company’s SYMBODA technology; positive input from FDA regarding advancement of phase 3 study for VagiCap; the continued recruitment in the ongoing REPLENISH phase 3 study; the engagement of a contract research organization for phase 3 study of VagiCap; the strengthening of the company’s intellectual property position; the solidification of the company’s cash position; the advancement of the company’s ongoing programs or support the company’s early stage pipeline, including novel transdermal product opportunities that leverage SYMBODA technology; the increase in sales driven by continued growth of the company’s current women’s health products; the launch of additional prenatal vitamins; the impact of development of the company’s late-stage pipeline of novel hormone therapies or advancement of the company’s early stage and preclinical programs are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including but not limited to: timely and successful completion of clinical studies and the results thereof; challenges and costs inherent in product marketing; the risks and uncertainties associated with economic and market conditions; risks and uncertainties associated with the company’s business and finances in general; and other risks detailed in the company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K filed on March 5, 2014, reports on Form 10-Q and Form 8-K, and other such filings. These forward-looking statements are based on current information that may change. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and the company undertakes no obligation to revise or update any forward-looking statement to reflect events or circumstances after the issuance of this press release.