Oppenheimer Bullish on TherapeuticsMD (TXMD) Following Expansion of Leading Portfolio


Oppenheimer analyst Jay Olson is out with a new research note on shares of TherapeuticsMD (NYSE:TXMD), following the news that the drug maker has entered into an exclusive license agreement with the Population Council to commercialize its investigational segesterone acetate/ ethinyl estradiol one-year vaginal system for contraception in the US.

Olson noted, “This innovative product combines a novel progestin, Nesterone, with estrogen to prevent ovulation for an entire year, thus providing women with long-term yet reversible control over their fertility. This form of contraception represents a growing opportunity as demonstrated by the commercial success of Nuvaring with US sales of $576M in 2017. TXMD owes milestone payments of $20M assuming FDA approval (Aug. 17 PDUFA) and $20M for the first commercial batch of the product. Although not in our model, we view this deal as highly accretive.”

The analyst added, “We believe the one-year contraceptive ring may offer certain advantages over Nuvaring. We look forward to the Aug. 17 PDUFA, assuming FDA approval, to compare labels and identify specific points of differentiation. Nuvaring faces loss of exclusivity this year, and while generics could represent a reimbursement challenge, we expect TXMD’s product to be reasonably priced based on Imvexxy.”

Net net, Olson reiterates an Outperform rating on TherapeuticsMD shares, with a price target of $12, which represents a potential upside of 130% from where the stock is currently trading. (To watch Olson’s track record, click here)

TherapeuticsMD has one of the best ratings by the Street. TipRanks reveals that the stock has a Strong Buy analyst consensus rating with 8 back-to-back Buy ratings and only 1 Hold rating. Meanwhile the average analyst price target of $13.78 suggests the stock still has upside potential of nearly 164% from the current share price for the next 12 months.

 

TherapeuticsMD is an innovative healthcare company focused on developing and commercializing products exclusively for women.

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