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Biopharma Co. Reports Strong FQ224 Results Driven
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Leede Financial Inc. analyst Dr. Douglas W. Loe wrote he is maintaining his target price and Buy rating on Theratechnologies Inc. (TH:TSX).

Leede Financial Inc. analyst Dr. Douglas W. Loe, in a research report published on July 10, 2024, provided an update on Theratechnologies Inc. (TH:TSX) following the company's fiscal Q2 2024 financial results. The analyst maintained a Speculative Buy rating and a target price of CA$8.00 on the stock.

Theratechnologies reported robust FQ224 financial data, showing significant sequential growth in both revenue and EBITDA.

"FQ224 sales for the firm's HIV lipodystrophy-targeted stabilized long-acting growth hormone-releasing factor Egrifta/tesamorelin were notably strong in the quarter, achieving the second highest quarterly gross revenue value in the firm's public markets history," Loe noted.

The analyst highlighted that while Trogarzo sales were solid but unspectacular, "it is clear from consolidated financial data that Egrifta revenue and gross margin strength contributed substantially to record EBITDA/margin for the firm, even before adjusting for oncology-based R&D expense that we conventionally calculate as a separate profitability measure."

Loe emphasized that Theratechnologies maintained its fiscal 2024 revenue guidance of US$87M-to-US$90M for Egrifta and Trogarzo combined, as well as its EBITDA guidance of US$13M-to-US$15M. "With FQ224 revenue run-rate on pace to meet the low end of that range, we believe that our unchanged F2024 product revenue forecast (also at the low end of the range at US$87.2M) has been measurably de-risked by FQ224 performance," the analyst stated.

Theratechnologies' strategic focus remains on its HIV-focused specialty pharma business, with ongoing Phase I oncology activities in the background. The company's strong financial performance in FQ224, particularly from Egrifta sales, demonstrates its ability to execute its core business while maintaining cost discipline.

Leede Financial's valuation methodology for Theratechnologies is based on a combination of net present value (NPV) and multiples of forecasted EBITDA and EPS.

"Our valuation still based on NPV (15% discount rate, justifiably low in our view based on legacy revenue/EBITDA generated by flagship HIV commercial assets) and multiples of our F2026 EBITDA/EPS forecasts (US$27.5M & US$0.22/ respectively)," Loe explained.

With a Speculative Buy rating and a target price of CA$8.00, representing a potential return of 281% from the price at the time of the report of CA$2.10, Leede Financial sees significant upside potential for Theratechnologies.

The analyst concluded, "Bottom line — maintaining rating/PT on the strength of increasingly profitable HIV-focused specialty pharma firm, independent of Phase I oncology activities transpiring in the background."


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  1.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 
  2. This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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Disclosures for Leede Financial Inc., Theratechnologies Inc., July 10, 2024

Important Information and Legal Disclaimers Leede Financial Inc. (Leede) is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). This document is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. All information is as of the date of publication and is subject to change without notice. Any opinions or recommendations expressed herein do not necessarily reflect those of Leede. Leede cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value, and you may lose money. Leede employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients. Disclosure codes are used in accordance with Policy 3600 of CIRO.

The analyst or any associate of the analyst responsible for the report or public comment hold shares or is short any of the company's securities directly or through derivatives.

Dissemination All final research reports are disseminated to existing and potential institutional clients of Leede Financial Inc. (Leede) in electronic form to intended recipients thorough e-mail and third-party aggregators. Research reports are posted to the Leede website and are accessible to customers who are entitled to the firm’s research. Reproduction of this report in whole or in part without permission is prohibited.

Research Analyst Certification The Research Analyst(s) who prepare this report certify that their respective report accurately reflects his/her personal opinion and that no part of his/her compensation was, is, or will be directly or indirectly related to the specific recommendations or views as to the securities or companies. Leede Financial Inc. (Leede) compensates its research analysts from a variety of sources and research analysts may or may not receive compensation based upon Leede investment banking revenue.

Canadian Disclosures This research has been approved by Leede Financial Inc. (Leede), which accepts sole responsibility for this research and its dissemination in Canada. Leede is registered and regulated by the Canadian Investment Regulatory Organization (CIRO) and is a member of the Canadian Investor Protection Fund (CIPF). Canadian clients wishing to effect transactions in any designated investment discussed should do so through a Leede Registered Representative. U.S. Disclosures This research report was prepared by Leede Financial Inc. (Leede). Leede is registered and regulated by the Canadian Investment Regulatory Organization (CIRO) and is a member of the Canadian Investor Protection Fund (CIPF). This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Leede is not registered as a broker-dealer in the United States and is not subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.





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