What happened
Shares of TherapeuticsMD (TXMD -6.37%) fell over 21% today after the company announced preliminary third-quarter 2019 operating results and a share offering. The healthcare business estimates that it will report up to $8.3 million in revenue when Q3 results are finalized, comprising sales of vitamin products and three drug products. The average Wall Street estimate expects $8.4 million in quarterly revenue, according to numbers compiled by Yahoo! Finance.
TherapeuticsMD also proposed a public offering of common stock. It intends to offer at least 22 million shares, and possibly as many as 25.3 million shares, which will increase the outstanding number of shares by roughly 10%. The offering has yet to be priced, but the pharmaceutical stock is trading hands at about $3 per share. That suggests the offering could raise about $60 million in gross proceeds. The company had an estimated $155 million in cash at the end of September.
As of 11:39 a.m. EDT, the stock was down 19.1%.
Image source: Getty Images.
So what
Investors have grown impatient with TherapeuticsMD this year. The women's health company has failed to wow the market with product revenue growth. While there were signs that was changing this summer, today's news suggests choppy performances are here to stay.
To be fair, that's not entirely unexpected when commercializing a new drug product -- and TherapeuticsMD has three relatively new products in Imvexxy, Bijuva, and Annovera. The latter launched in August and is on pace to become the second best-selling drug in the portfolio before the end of the year.
Then again, that could be part of the problem in the minds of investors. While the lineup has combined peak annual sales potential of nearly $2 billion, roughly $900 million of that total is expected to come from Bijuva. But TherapeuticsMD estimates that Bijuva had Q3 revenue of just $500,000.
Now what
Investors will need to wait for the finalized quarterly results and management's commentary. Many analyst questions during the upcoming conference call are likely to focus on the sluggish start for Bijuva and the relatively strong start for Annovera.
