Shares of the TherapeuticsMD, Inc. (TXMD) stock were rising in the premarket trading session today on December 9, 2021. TXMD stock price saw a push of 7.85% to reach $0.50 a share at the time of this writing. The stock was also green in the previous trade and went up by 4.83% with a $0.46 per share price at closing. Let’s understand the reason behind this rally.

What’s Happening?

TXMD stock recently announced the settlement of the U.S. patent litigation for BIJUVA® with Amneal Pharmaceuticals, Inc., Amneal Pharmaceuticals, LLC, and Amneal Pharmaceuticals of New York LLC. The company disclosed the U.S. patent litigation for BIJUVA® before.

According to the settlement, TXMD stock granted the license to Amneal for the commercialization of a generic version of BIJUVA of Amneal in the United States, starting on May 25, 2032. Amneal submitted an abbreviated new drug application to FDA to get market approval for a generic version of BIJUVA. The intention was to get approval before the patent expiration date of November 21, 2032. The litigation is the result of this submission by Amneal.

If you are curious to know the TherapeuticsMD, it is a women’s healthcare company operating in the United States. Its main drugs include IMVEXXY, BIJUVA, and ANNOVERA. The company was incorporated in 2008 and its current market value is $196.6 million.

Financial View of TXMD stock:

In the previous month, TherapeuticsMD did announce third-quarter 2021 financial results according to which

• TXMD stock generated $25,4 million in net product revenue in the three months ended September 30, 2021. In the same quarter of last year, the company generated $19.3 million in net product revenue.
• TXMD stock suffered a net loss of $47.4 million in the third quarter of 2021. This compares to a net loss of $32.6 million in the same tenure of the previous year.
• The company spent $60.0 million in operating expenses in the recently reported quarter. This represents a significant increase as compared to $41 million in the same period of the previous year.
• The cost of goods for the TXMD stock was $5.3 million as compared to $3.3 million in the prior-year same quarter.
• Product gross margin was 78% in Q3,2021 compared to gross margin of 81% in Q3,2020.
• By the end of the third quarter, TXMD stock had $104.8 million of cash in hand. As of December 30, 2021, the company had $80.5 million in cash.

Wrap Up:

Investors are responding positively to the recent announcement of the TherapeuticsMD stock in today’s premarket. The financial results reflect the growth of the net product revenue year-over-year. However, this stock has lost almost 63% year to date.