Therapeutics MD most recent SEC filing a week ago for the second quarter ending June 30, makes for an interesting read.
https://ir.therapeuticsmd.com/static-files/283fa1d6-9376-43f0-ad54-0335b4609cceRevenue received from Mayne Pharma for the second quarter was down 46%
License and Service Revenues from Continuing Operations
● License revenue, primarily from the Mayne License Agreement, totalled $234 thousand for the second quarter of 2024, a decrease of $203thousand, or 46.5%, compared to $437 thousand in license revenue for the second quarter of 2023. The decrease is primarily attributable tochanges in sales of licensed productsIt appears that there is some dispute about fees payable due to discrepancies in wholesale fees and payer rebates, if the reduction in royalty fees is due to a decrease in sales then there's trouble coming on Friday for Mayne Pharma. I have read the report fully and I am a little concerned but I am reminded that the expectations for revenue have not changed.
On a broader picture, ThMD have only six months of operating cash at the current burn rate of $2.7M/quarter and I think they are going down the same path as Mithra, their market capitalisation is now under US$20M. This could be good news for MYX if they go into liquidation and we're able to purchase the licences outright for a small amount of cash. No more fees would be payable for these products.
