Theratechnologies Is An Underappreciated HIV-Focused Company, Analyst Says

Theratechnologies Is An Underappreciated HIV-Focused Company, Analyst Says
  • Cantor Fitzgerald has initiated coverage on Theratechnologies Inc THTX with an Overweight rating and a price target of $9
  • Theratechnologies' two HIV drugs, Egrifta and Trogarzo, could grow 20% a year for the foreseeable future, the analyst writes.
  • Being conservative, Cantor has modeled a mid-teens sales growth for these two products. 
  • Product innovations and dedicated sales focus on these two drugs have driven uptake. 
  • THTX's decision to internalize its field force and strengthen its commercial operations in the U.S. is starting to deliver results, as evidenced by the 19% Y/Y sales growth in this territory in 3Q22. 
  • For FY22, the company says it is on track to be around $79 million - $82 million, or growth of the commercial portfolio of 13%-17% Y/Y.
  • Cantor writes that the company's HIV franchise is a source of funds to help build its oncology and NASH pipelines.
  • In July, Theratechnologies issued an update on the dose escalation portion of the TH1902 Phase 1 safety study. 
  • The data came from 18 heavily pretreated patients with sortilin- (SORT1) expressing cancers.
  • No Dose Limiting Toxicities were observed during the first cycle.
  • Price Action: THTX shares are up 18.60% at $2.23 on the last check Thursday.

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