TherapeuticsMD (TXMD): The Next 12-18 Months Could be a Period of Positive Stock Performance, Says Cantor

TherapeuticsMD (NASDAQ:TXMD) announced Friday that the FDA has approved its vaginal contraceptive system known as ANNOVERA. ANNOVERA is the first long-acting prescription birth control that is patient-controlled, procedure-free and reversible. The Annovera launch is expected to occur around the end of 2019.

In reaction, Cantor analyst William Tanner reiterated an Overweight rating on TherapeuticsMD shares, while raising the price target to $27 (from $26), which represents a potential upside of 425% from where the stock is currently trading. (To watch Tanner’s track record, click here)

Tanner commented, “Although the stock is undervalued relative to the commercial potential of either Imvexxy or TX-001 (if approved), in our view, we believe TXMD’s acquisition of commercial rights to Annovera should appeal to investors. The product is clearly complementary to the emerging women’s health franchise and we believe it reasonable that operational synergies will arise […] We credit management with reaching for what appears to be a novel product vs. an asset that might best be viewed as a financial engineering tool. At a minimum, the apparent ease regarding ability of the user to insert and remove the ring could favorably position Annovera as a new treatment option, we believe.”

Bottom line: “After many years of underperformance, despite corporate progress that includes FDA approval of Imvexxy and positive pivotal data for TX-001, we believe the next 12-18 months could be a period of positive stock performance if the company executes on the commercial front.”

Wall Street’s confidence on the healthcare company speaks for itself; TXMD has received a whopping 8 “buy” ratings vs only 1 “hold” in the past three months, according to TipRanks. Meanwhile, the $13.89 price target suggests a potential upside of 170% from the current share price.

TherapeuticsMD is an innovative healthcare company focused on developing and commercializing novel products exclusively for women. TherapeuticsMD’s products are designed to address the unique changes and challenges women experience through the various stages of their lives with a therapeutic focus in family planning/reproductive health and menopause management. 

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