Montreal biopharmaceutical company Theratechnologies reassured investors on Tuesday that it should, as expected, post a positive adjusted operating profit for the quarter just ended.
Management had previously indicated its desire to post a positive adjusted operating profit in the second part of the financial year which will end at the end of November.
Executives also clarified Tuesday that the company could count on the equivalent of $23 million in cash to begin the month of September.
Theratechnologies stock rose 14% on Tuesday to close at $1.43 on the Toronto Stock Exchange after the release of these two interim highlights.
The official financial performance for June, July and August of Theratechnologies is expected by the end of September.
The “headwinds” of the spring months are “firmly behind” the company, Theratechnologies Senior Vice President and Chief Financial Officer Philippe Dubuc said in a statement.
“Theratechnologies’ commitment to investors at the start of 2023 was to remain firm in achieving its key financial objectives, including achieving positive adjusted EBITDA by year-end. ongoing financial,” he points out.
Turnover suffered at the start of the year from an accumulation of larger than necessary stocks by specialist pharmacies at the end of 2022 in anticipation of higher demand. A reorganization mainly aimed at research and development activities at Theratechnologies was carried out this year to now generate an adjusted gross profit.
If analyst Endri Leno, of National Bank Financial, believes that Tuesday’s announcement is in line with his forecasts since he already forecast a positive adjusted gross profit for the third quarter, he maintains that it is nevertheless positive, because it shows that the company is on the right track to achieve its goals.
Theratechnologies stock was still worth a dozen dollars last November. Theratechnologies stock took a nosedive after the company indicated in early December that it was pausing patient recruitment for its Phase I clinical trial of an experimental drug for treating cancerous tumors.
The stock’s pullback was so steep that Theratechnologies was forced to consolidate it on a one-for-four basis earlier this summer.
This consolidation was carried out with the sole aim of increasing the share price so that the company once again complies with the requirements of the NASDAQ – where the stock is also listed – and thus maintain listing on this American stock exchange.
A significant portion of Theratechnologies stock trading volume is listed on NASDAQ, which is why it was important for the company to remain listed there. The NASDAQ is recognized for its pool of investors interested in biotech and biopharmaceutical stocks.
