Investors Underestimating Value of TherapeuticsMD Inc (TXMD) TX-001 Asset, Bets William Tanner

Cantor's William Tanner explains that while TXMD asset TX-004 has magnetized the Street's attention in the last half a year, TX-004 boasts a bigger commercial market.

Could TherapeuticsMD Inc (NASDAQ:TXMD) have an even more compelling asset on its hands than its VVA vaginal softgel capsule, designed to treat moderate-to-severe vaginal pain during sexual intercourse (dyspareunia)? One bull bets yes, believing TX-001 presents even more value.

The estrogen plus progesterone hormone replacement therapy (HRT) for treating vasomotor symptoms (VMS), including hot flashes, correlated with menopause symptoms, is nearing a prospective nod from the FDA. Cantor analyst William Tanner wagers, “If approved, TX-001 could enter a VMS market characterized by the absence of FDA-approved therapies.”

Now that the biotech player has submitted an NDA for TX-001, “a drug we believe could be far-bigger than TX-004,” which aligns with the TXMD’s previous guide, Tanner reiterates an Overweight rating on TXMD stock with a $28 price target, which implies a nearly 363% upside from current levels. (To watch Tanner’s track record, click here)

Whether or not the NDA is accepted should be determined following receipt of the Filing Review Notification from the agency, roughly 74 days following submission.

Tanner concludes on an upbeat note: “With all the fireworks over TX-004 in the past six months, we believe investors may have lost sight that TX-001, the more-valuable TXMD asset, in our opinion, may be approaching potential FDA approval. If approved, TX-001 would enter a larger commercial market than TX-004 that we believe will be influenced by forces such as the Drug Quality and Safety Act (DQSA), USP 800, and concerns about medical liability. Whether so-called anti-aging physicians continue to prescribe compounded hormone therapy to menopausal women remains to be determined; however, we continue to believe that the on- and off-label segments of the VMS population could provide substantial value-creating opportunities for TXMD.”

TipRanks highlights a strong bullish camp backing TherapeuticsMD stock, with all 7 analysts polled in the last 3 months rating a Buy. With a massive return potential of nearly 153%, the stock’s consensus target price stands at $15.29.

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