TherapeuticsMD Inc (TXMD): William Tanner Questions Bearish Voices as TX-004 Makes Its Way Closer to Gaining a Green Light

Cantor's William Tanner smirks as bears run low on "ammunition" to doubt TXMD on the heels of news of an NDA resubmission to the FDA for TX-004.


TherapeuticsMD Inc (NASDAQ:TXMD) just revealed it will be resubmitting the New Drug Application (NDA) for its TX-004 asset to the FDA. Should the agency accept the filing from the women’s healthcare player for its vaginal softgel capsule designed to treat moderate-to-severe vaginal pain during sexual intercourse (dyspareunia), a vulvar and vaginal atrophy (VVA) symptom from menopause, all eyes will be on whether the FDA sets a review set for two or six months.

Cantor analyst William Tanner is a bull that sees the drug maker “squeezing closer to the goal line,” and bets on a “high” probability for approval at the finish line.

In reaction to news of resubmission, which aligns with expectations set at the start of the month for this to occur ‘soon,’ the analyst reiterates an Overweight rating on TXMD stock with a price target of $31, which represents a 408% increase from where the stock is currently trading. (To watch Tanner’s track record, click here)

Overall, “Reasons to maintain a bearish viewpoint on TXMD stock are falling by the wayside, in our view, and we are mindful that ‘morphing’ bear theses may reveal that desperation is setting in and that critics are running out of ammunition. With little left to hang onto (we believe nearer-term TX-004 revenue assumptions are not unreasonable), we would not be surprised if the pace of short covering were to begin to pick up. Based on incoming queries we received from legacy TXMD “doubters” prior to the CRL in April, prospects for approval could create buying pressure from those same investors, particularly given that the FDA response in that letter highlighted no deficiencies other than questions about endometrial safety,” Tanner surmises, strong in his convictions from the bullish camp on this woman’s healthcare firm’s prospects.

When glancing at the analyst consensus on TipRanks for the biotech stock, the rating goes to the bulls here, with 7 analysts rating a Buy on TXMD stock in the last 3 months- and only 1 analyst maintaining a Hold. With a bullish consensus backing the company, it’s no surprise the 12-month average consensus price target boasts potential upside for 154%, with expectations hovering around $15.43.

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