TherapeuticsMD rises on license deal to flip into a royalty company

TherapeuticsMD

05/12/2022 11:17

** Shares of women-focused drugmaker TherapeuticsMD Inc
 TXMD.O  rise 6.7% premarket to $4.75
    ** Co said Sunday it signed a license deal with
Australia-based Mayne Pharma Group Ltd  MYX.AX , incl for sale
of certain assets for upfront payment of $140 mln
    ** Mayne Pharma to gain exclusive U.S. commercialization
rights for sold products and TXMD will get 20-yr royalty stream
    ** Co will receive ~$13 mln for acquired net working cap,
$42.6 mln min royalties and up to $30 mln in additional
milestone payments
    ** Transaction allows TXMD to recapitalize and transform
into a pharmaceutical royalty company
    ** Up to Friday's close, stock had fallen ~75% YTD
 (Reporting by Sriparna Roy)
 ((Sriparna.Roy@thomsonreuters.com;))