TherapeuticsMD is a Hot Healthcare Pick
|Written by GSCR Staff|
|Wednesday, 13 April 2016 06:20|
In Monday’s Goldman Guide we discussed the downtrodden healthcare sector of 2016. Now may be the time to look for a stock that bucks the trend. A little more than two years ago we featured TherapeuticsMD, Inc. (NYSE – TXMD - $7.66) at $6.20.
The chart below illustrates the performance over that time which indicates a high of $11.26 just a few months ago and an overall increase of 23.5%. Additionally, the stock is still well above the 200-day EMA technical indicator as another momentum run appears to have begun.
TXMD 2-Year, 200-Day EMA
As a refresher, the Company manufactures and distributes prescription and over-the-counter product lines, including prenatal vitamins, iron supplements, and natural menopause relief products under the vitaMedMD brand, as well as generic formulations of its prescription prenatal vitamins products under the BocaGreenMD Prena1 name. Its pipeline of hormone therapy drug candidates include TX-001HR, a combination of estradiol and progesterone drug candidate under clinical trials for the treatment of moderate to severe vasomotor symptoms due to menopause. TX-002HR is a natural progesterone formulation for the treatment of secondary amenorrhea without the potentially allergenic component of peanut oil. TX-004HR is an applicator-free vaginal estradiol softgel drug candidate for the treatment of vulvar and vaginal atrophy in post-menopausal women with vaginal linings that do not receive enough estrogen.
The Company’s product and pipeline indicate that its main target demographic, menopausal women, is a large and growing one as baby boomers keep getting older. On a huge positive note, the Company had $65 million on hand with zero debt as of the end of 2015. Additionally, the gross margin for TherapeuticsMD is 78% versus the industry average of 58%. Finally, Wall Street Analysts’ consensus is that revenue will grow over 20% from 2015 to 2016 to $24 million this year and $70 million in 2017 as the Company begins to monetize its pipeline.
TXMD is a great story with a promising pipeline in a growing market. Look for the accumulation to continue and the stock to climb back to $10 over the next three to six months.
Have a great day!
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