TherapeuticsMD, Inc. Q3 FY2020 earnings call

· Strong Q3 operational execution with $19.3 million in total net revenue, an 80% increase over the second quarter. ANNOVERA had a 115% rise in prescriptions dispensed QoQ, and menopausal products saw double-digit growth in new and total prescriptions. · Fortified ANNOVERA’s patent portfolio with three Orange Book-listed patents, providing exclusivity through 2039; IMVEXXY and BIJUVA also received new patents. · Reduced operating expenses, with cash burn minimized. · Identified vitaCare Prescription Services as a potential non-dilutive funding source via divestiture, with enterprise value potentially upwards of $100 million. · Made payer progress: ANNOVERA added to Caremark at non-preferred status, West Virginia Medicaid made ANNOVERA unrestricted, Medi-Cal added ANNOVERA, Anthem moved BIJUVA to preferred, and IMVEXXY gained preferred coverage with a major PBM. · Navigated COVID impact by adapting consumer and prescriber initiatives, using virtual engagement for educational programs and sales force access improvement.

The third quarter saw strong performance across product segments. ANNOVERA achieved a 115% increase in total prescriptions dispensed over the second quarter, with total net revenue contributing significantly. Its net revenue per unit was $1,339. For the menopausal portfolio, IMVEXXY had a 35% increase in net revenue and a net revenue per unit of $51, while BIJUVA saw a 22% increase in net revenue with a per unit of $47. Menopausal products overall realized double-digit growth in both new and total prescriptions compared to the previous quarter. Product net revenue from sales to wholesalers and pharmacies was $17.3 million, a 62% increase from the second quarter, driven largely by ANNOVERA's 250% net revenue growth.

· On track to meet the $20 million Q4 revenue covenant. · Aim to achieve EBITDA breakeven in Q4 2021. · VitaCare divestiture presents a potential significant source of non-dilutive capital. · A major PBM will exclude competitors of ANNOVERA and IMVEXXY from its formulary starting January 1, offering market share opportunities.

· Potential volume fluctuations due to COVID-19-related delays in patient visits to OB/GYN offices and sales force access. · Dependence on lender covenants; while the cash balance requirement was lowered, additional funding may still be needed. · Impact of regulatory changes, such as those from the NASEM Report on compounding practices, on product categories.

Q: Can you frame what might happen if you missed upcoming revenue requirements, and how should we think about upcoming inflections of IMVEXXY and ANNOVERA products with reduced cash requirement?

A: Rob Finizio states they're on track for Q4 revenue covenant, feel good about EBITDA breakeven in Q4 2021, and the reduced cash requirement from lender is a cooperative move with runway for vitaCare divestiture.

Q: What's the overlap in sales force and marketing channels for ANNOVERA, IMVEXXY, and BIJUVA, and what's the optimal gross to net target for ANNOVERA?

A: Rob Finizio and Dawn Halkuff explain significant overlap in top prescribers, no need for additional sales force growth, and ANNOVERA's gross to net target is between current levels and $1,200, with growth potential from military and public health channels once COVID eases.

Q: Update on COVID headwinds in office volumes, telemedicine contribution, and Symphony data for ANNOVERA?

A: Rob Finizio notes reduced switching behavior due to COVID, doctors limiting reps, but we're off May lows, and telemedicine contributes ~18%-22% of revenue. Symphony data shows underreporting of ANNOVERA volume, with trends consistent.

Q: Thoughts on ANNOVERA seasonality and IMVEXXY reimbursement tactical decisions?

A: Rob Finizio mentions back-to-school seasonality trends, ANNOVERA likely to do well due to state and federal laws, and IMVEXXY has preferred coverage with PBM to improve gross-to-net.

Q: PBM strategy, IMVEXXY refill rate?

A: Dawn Halkuff says PBM strategy varies by payer, IMVEXXY has a 6.5 refill rate per patient on average, and preferred coverage with PBM helps improve market share.