Oppenheimer Sees 125% Upside for TherapeuticsMD (TXMD) Stock; Here’s Why


Oppenheimer analyst Jay Olson is out today with a bullish research note on shares of TherapeuticsMD (NASDAQ:TXMD), after the drug maker reported second-quarter results and outlined launch plans for Imvexxy along with other business updates.

Olson wrote, “Although two generic VVA products are available, both are taking share only from their reference products without cannibalizing other brands. We view Imvexxy (lowest dose estrogen product available for VVA) and TX-001 (potentially the only FDA-approved bio-identical estrogen-progesterone combination) as sufficiently differentiated to avoid generic substitution and successfully obtain reimbursement. TXMD has responsibly priced Imvexxy at parity with other branded products.”

Olson continued, “We’re optimistic about abstracts submitted for the NAMS annual meeting in Oct. These abstracts contain data on weight, blood pressure and coagulation for TX-001 from the REPLENISH study. Because synthetic progestins may be associated with increased weight, blood pressure and coagulation times, we suspect the data at NAMS may provide further differentiation for TX-001,” the analyst added.

As such, the analyst reiterates an Outperform rating on TherapeuticsMD stock, with a $12 price target, which implies a huge upside of 125% from current levels. (To watch Olson’s track record, click here)

How does Olson’s bullish bet weigh in against the Street? It appears the analyst is not the only one enthusiastic on this drug maker’s prospects, with TipRanks analytics demonstrating TXMD as a Strong Buy. Out of the 10 analysts polled in the past 12 months, 9 rate TherapeuticsMD stock a Buy, while only 1 rates it a Hold. With a return potential of 161%, the stock’s consensus target price stands at $13.78.

 

TherapeuticsMD is focused on women’s health innovation with two main products, Imvexxy and TX-001. Imvexxy was approved on May 29 – the drug is indicated for the treatment of moderate to severe dyspareunia, a symptom of VVA. TX-001 HR is potentially the first bio-identical progesterone/estrogen combination on the market – the company submitted an NDA for the product in December 2017 (based on phase III Replenish trial), and has a PDUFA date of October 28

 

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