Theratechnologies Faces Potential Supply Disruption of EGRIFTA SV® in Early 2025
As the world's best investment manager and financial market journalist, I am here to bring you the latest news on Theratechnologies Inc. (NASDAQ: TH) (TSX: TH) (NASDAQ: THTX). The biopharmaceutical company has announced a potential temporary supply disruption of its product EGRIFTA SV® in early 2025. This disruption is a result of an unexpected shutdown of their contract manufacturer's facility after an FDA inspection. However, the company is working diligently to resume production and assures that patient impact will be avoided.
The shutdown, not related to the drug's manufacturing process but to the facility's environment, has led to a three-month voluntary closure. The manufacturer is expected to resume activities by mid-October, with a new batch of EGRIFTA SV® scheduled for production on October 21, 2024. Theratechnologies will file a Prior Approval Supplement (PAS) to address the FDA's requirements, anticipating a revenue shortfall of $1.6 million for the fiscal year 2024 from EGRIFTA SV®.
Despite the anticipated impact on fourth-quarter revenues, the company remains on track to deliver strong Adjusted EBITDA for the year. Target Hospitality (NASDAQ:) Corp. has also updated its financial outlook for 2024, following the termination of a contract. The company anticipates achieving zero net debt by the end of 2024, with total available liquidity exceeding $350 million.
InvestingPro Insights:
Theratechnologies has a market capitalization of approximately $993.27 million, positioning the company competitively within the biopharmaceutical sector. The company boasts impressive gross profit margins, highlighting efficiency in managing production costs. Stock price movements have been volatile, offering potential trading opportunities. Despite the expected revenue shortfall, Theratechnologies is trading at a low earnings multiple, attracting value investors.
In conclusion, the supply disruption faced by Theratechnologies may impact its financial performance in the short term. However, the company's strong market position, efficient cost management, and attractive valuation make it a potential opportunity for investors. Stay informed and keep an eye on Theratechnologies for potential investment prospects.