Theratechnologies (THTX, Financial) recently unveiled two significant poster presentations at the 19th Annual American Conference for the Treatment of HIV in Chicago. Both presentations explored the challenge of excess visceral abdominal fat (EVAF), a frequent issue for individuals with HIV. One analysis highlighted data from the Visceral Adiposity Measurement and Observations Study, revealing that EVAF was linked to diminished muscle quality in aging individuals with HIV.
The VAMOS study offered additional insights, examining the impact of EVAF compared to subcutaneous fat on muscle quality in HIV patients on current anti-retroviral therapies. The study involved 170 participants, finding a 58% prevalence of EVAF. Results showed that while muscle quality deteriorated with age, it did not depend significantly on body mass index. EVAF was notably correlated with poorer skeletal muscle quality, as indicated by lower muscle mean attenuation.
Furthermore, a case series reported on the use of tesamorelin, combined with GLP-1 receptor agonists (RAs), for treating EVAF. Among the seven evaluated individuals, initiating tesamorelin resulted in an average waist reduction of 1.3 inches. The decision to add GLP-1 RAs was primarily aimed at enhancing BMI and managing diabetes.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Theratechnologies Inc (THTX, Financial) is $3.90 with a high estimate of $4.00 and a low estimate of $3.80. The average target implies an upside of 33.56% from the current price of $2.92. More detailed estimate data can be found on the Theratechnologies Inc (THTX) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Theratechnologies Inc's (THTX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Theratechnologies Inc (THTX, Financial) in one year is $1.57, suggesting a downside of 46.23% from the current price of $2.92. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Theratechnologies Inc (THTX) Summary page.
THTX Key Business Developments
Release Date: April 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Theratechnologies Inc (THTX, Financial) reported a 17% growth in total revenues, reaching $19 million for the first quarter of 2025.
- The company's lead asset, GriftaSV, showed strong market momentum, contributing significantly to revenue growth.
- The new F8 formulation of Tessam Morland was approved, offering improved patient experience with once-weekly reconstitution.
- The company successfully resumed distribution of AgriftaSV after a temporary drug shortage, with patient numbers rebounding.
- Theratechnologies Inc (THTX) achieved a positive adjusted EBITDA of $2.3 million, a significant improvement from the previous year's loss.
Negative Points
- The temporary drug shortage of AgriftaSV resulted in a sales loss of 6 to 7 weeks, impacting revenues by approximately $10 million.
- Q2 revenues are expected to be affected due to larger-than-usual orders at the end of Q1, leading to a longer drawdown period.
- Net sales of Trogarzo decreased by 22% year-over-year due to new competitors, with expectations of stabilization at lower levels.
- Selling expenses increased by 10% compared to the previous year, driven by higher stock-based compensation and professional fees.
- The company faces challenges in transitioning from AgriftaSV to AgriftaWR, with potential payer-related issues during the transition period.
