Therapeuticsmd, Inc. · NASDAQ:TXMD
Therapeuticsmd — Q4 2020 Earnings Presentation
43 slides from Therapeuticsmd's earnings presentation, Mar 2, 2021
Slide 1: Building the Premier Women's Health Company
Building the Premier Women’s Health Company 4Q 2020 Earnings March 2, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation by TherapeuticsMD, Inc. (referred to as “we,” “our,” or the “Company”) may contain forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies, as well as statemen
Slide 3: Strategic Overview
Strategic Overview FOR INVESTOR PRESENTATION PURPOSES ONLY. 3
Slide 4: Overview of 2020 Accomplishments During a Challenging Year
Overview of 2020 Accomplishments During a Challenging Year Delivered strong growth in 2020 and Q4 Improved key financial metrics and took action to strengthen balance sheet ⎯ Increased 4Q20 net product revenue 30% to $22.6M compared to 3Q20 ⎯ ANNOVERA net revenue per unit above expectations ⎯ Comple
Slide 5: Strengthened Balance Sheet and Revised Covenants
Strengthened Balance Sheet and Revised Covenants Strengthened Balance Sheet ▪ Improved our cash balance through a $180M series of transformative equity capital raises in 4Q20 and 1Q21 which increased our cash balance to >$200M once completed ▪ Increased cash position along with potential proceeds fr
Slide 6: 4Q20 Financial Overview
4Q20 Financial Overview FOR INVESTOR PRESENTATION PURPOSES ONLY. 6
Slide 7: Quarterly Net Revenue Trends
Quarterly Net Revenue Trends Quarterly Net Product Revenue $22.6 $20 4Q20 Highlights $18 $17.3 ▪ Overall Net Revenue from Products increased $16 30% quarter over quarter: $14 30% ▪ ANNOVERA net revenue increased 42% $12 ▪ Average net revenue per unit $1,336(1) Millions $10 ▪ IMVEXXY net revenue incr
Slide 8: Financial Results: Comparison 3Q 2020 to 4Q 2020
Financial Results: Comparison 3Q 2020 to 4Q 2020 Comparison of Key Financial Statement Items [in 1,000’s] Increase ▪ Gross Margin of 75% 4Q20 3Q20 (Decrease) - Impacted by write-offs of finished goods inventory for Balance Sheet(1) ANNOVERA $0.8M, IMVEXXY $0.5M and BIJUVA $0.5M Cash $80,486 $79,634
Slide 9: Financial Accomplishments
Financial Accomplishments ▪ Reduced operating expenses and cash burn by successfully meeting our goal of $80 million in op-ex for the second half of 2020, excluding non-cash items and incentives totaling $13M – Reduced net cash used in operating activities to $30.3M for the 4Q20 ▪ Strengthened our b
Slide 10: Commercial Performance and Growth Drivers
Commercial Performance and Growth Drivers FOR INVESTOR PRESENTATION PURPOSES ONLY. 10
Slide 11: Payor Progress: Maintained all Major Payors Across Product Portfolio
Payor Progress: Maintained all Major Payors Across Product Portfolio Coverage Coverage November 1, 2020 March 1, 2021 Recent changes to access: Commercial 62% UR, 74%(1) 70% UR, 79%(1) ▪ Increases in coverage due to increased lives in Medicaid 57%(2) 57% plans where TXMD products have access Departm
Slide 12: ANNOVERA: Unique Opportunity to Create a New Segment within Birth Control
ANNOVERA: Unique Opportunity to Create a New Segment within Birth Control FOR INVESTOR PRESENTATION PURPOSES ONLY. 12
Slide 13: ANNOVERA Continued Growth Trajectory: 15% Unit Increase from Q4 over Q3
ANNOVERA Continued Growth Trajectory: 15% Unit Increase from Q4 over Q3 ANNOVERA Quarterly TRx 5,950 ANNOVERA 4Q20 Performance Drivers 6000 ▪ Access to prescribers improving for sales force 5500 5,160 ▪ Consumer campaign launched in July beginning to take hold 5000 ▪ Launched celebrity spokesperson
Slide 14: Leading Indicator of Potential Future Growth: ANNOVERA Writers Continue to Grow
Leading Indicator of Potential Future Growth: ANNOVERA Writers Continue to Grow 7,000 Key Takeaways # of Presscribers 6,000 Units of Annovera to Patients 5,952 ▪ Growth across all categories of targets 5,160 that are sales force driven 5,000 4,000 ▪ Growth across non-targets that are marketing drive
Slide 15: Leading Indicator: ANNOVERA Consumer Relevance, Impact and Intent
Leading Indicator of Potential Future Growth: ANNOVERA Consumer Relevance, Impact and Intent Relevance: Impact: Intent: Climbing 2.7B Impressions Above Benchmark Brand lift studies conducted ▪ Above industry benchmark click show an average of 60% Just Say Vagina campaign through rates 0.29% vs. 0.25
Slide 16: Focus is on Execution to Improve Trajectory
Focus is on Execution to Improve Trajectory What is working: cost effective ways to get patients and prescribers interested ▪ Build of ANNOVERA consumer demand through advertising INTEREST and influencer marketing ▪ 2.7B impressions of initial PR campaign ▪ Over 10,000 visits a day to ANNOVERA.com ▪
Slide 17: ANNOVERA Launch Curve: Aggregate Women on Therapy
ANNOVERA Launch Curve: Aggregate Women on Therapy • From launch until 12/31/20, ~16,000 women have filled an Rx for ANNOVERA • The aggregate amount of women on therapy created significant value for TXMD, because a full year of revenue (13 fills) is realized when the prescription is dispensed • In ad
Slide 18: ANNOVERA Fills a Void in the Marketplace
ANNOVERA Fills a Void in the Marketplace LARCS encouraged ▪ LARC’s growing at a ~15% 8-year CAGR(1) as front-line therapy But LARCS are not ▪ ~47% patients rejected IUDs/Implants due to procedure(2) ▪ Almost half of GYNs and most PCPs do not offer IUDs/Implants for everyone A Long-lasting option tha
Slide 19: ANNOVERA Removes Barriers to Long-Acting Birth Control
ANNOVERA Removes Barriers to Long-Acting Birth Control by Removing the Need for a Procedure like ColoGuard did for Colorectal Screening All logos are property of their respective owners. FOR INVESTOR PRESENTATION PURPOSES ONLY. 19
Slide 20: ANNOVERA Goal: Become a New Segment in Birth Control
ANNOVERA Goal: Become a New Segment in Birth Control Short-Acting Decline Long-Acting Growth –4.2% CAGR(1) +15% CAGR(1) Annual, Procedure Free Daily Weekly Monthly 3 mo. injection 1 Year 3-10 Years SHORT-ACTING Market Void LONG-ACTING Note: (1) Based on company filings. FOR INVESTOR PRESENTATION PUR
Slide 21: Product Used Before ANNOVERA
Product Used Before ANNOVERA ANNOVERA is gaining market share from all products vitaCare Patient Data, Claimed from HCP Survey Users’ Previous Method n=276 Q420(1) Oral Contraception 24% 40% IUD 9% 18% Patch 4% 9% Implant 7% 6% Injection 6% 4% NuvaRing (or Generic) 44% 23% Note: (1) Internal researc
Slide 22: ANNOVERA Net Revenues are Significant at Small Market Share Percentages
ANNOVERA Net Revenues are Significant at Small Market Share Percentages Contraception ANNOVERA Gross Revenue Time to Achieve Market Size at Different Example 4-5% Market Share Market Shares (WAC: $2,000) $7 billion 1%: 180K Rx, ~$360M market size Lo-Loestrin ~4 years 2%: 360K Rx, ~$720M 28 million n
Slide 23: IMVEXXY: Fastest Growing Branded Product in Vulvar Vaginal Atrophy Category
IMVEXXY: Fastest Growing Branded Product in Vulvar Vaginal Atrophy Category FOR INVESTOR FOR PRESENTATION INVESTOR PRESENTATION PURPOSES PURPOSES ONLY. ONLY. 23
Slide 24: IMVEXXY Performance Drivers
IMVEXXY Performance Drivers IMVEXXY Quarterly IMVEXXY Performance Weekly NRx IMVEXXY 4Q20 Performance Drivers TRx NRx ▪ Access to prescribers improving for sales force, but still well below pre-COVID-19 135 33.8 35 130.8 33.0 ▪ ~6% increase in prescribers writing a prescription in 4Q20 130 compared
Slide 25: 2021 IMVEXXY Strategic Initiatives
2021 IMVEXXY Strategic Initiatives Realize Higher Net Pricing ▪ Effective January 1st, cash pay program and high-deductible patients co-pay increased from $50 to $75 Increase Volumes and Market Share through PBM ▪ Effective January 1st, only branded product covered at preferred status at top PBM (~2
Slide 26: 2021 IMVEXXY Strategic Initiatives: Status Update
2021 IMVEXXY Strategic Initiatives: Status Update IMVEXXY Weekly TRx As expected, short-term impact on volume in January Realize Higher Net Pricing 10,000 ▪ Improvements in adjudication, net revenue Jan 1st 9,340 Cash Pay per unit and net revenue Changed to $75 8,190 8,460 ▪ To date, ~$17 improvemen
Slide 27: 2021 is Our Year to Inspire and Drive Action with an Ownable and Differentiated Campaign
2021 is Our Year to Inspire and Drive Action with an Ownable and Differentiated Campaign for IMVEXXY Q1: PATIENT TESTIMONIALS Q2: NEW CAMPAIGN Interim Campaign “REIGN” ▪ Grounded in Self Care. Educates menopausal ▪ Launched 2/10 on Facebook women about overall vaginal health and taking ▪ Designed to
Slide 28: BIJUVA: First and Only FDA-Approved Bio-Identical Solution in VMS Market
BIJUVA: First and Only FDA-Approved Bio-Identical Solution in Vasomotor Symptoms (VMS) Market FOR INVESTOR FOR PRESENTATION INVESTOR PRESENTATION PURPOSES PURPOSES ONLY. ONLY. 28
Slide 29: BIJUVA Volume Increased with Bio-Ignite Focus
BIJUVA Volume Increased with Bio-Ignite Focus BIJUVA Quarterly Performance TRx NRx 35 8 BIJUVA 4Q20 Performance Drivers 7.6 7.6 33.0 32.0 ▪ Targeted approach with supporting Bio-Ignite to maintain brand loyalists with 7 sales representatives Thousands 7 30 ▪ ~3% increase in prescribers writing a pre
Slide 30: Summary
Summary Transformed our capital structure Improved our balance sheet Updated our net revenue covenants Framework is in place to accelerate both ANNOVERA and IMVEXXY adoption throughout 2021 vitaCare divesture progressing Well positioned to continue our growth to EBITDA break even, anticipated in the
Slide 31: Q&A
Q&A FOR INVESTOR PRESENTATION PURPOSES ONLY.
Slide 32: Appendix
Appendix FOR INVESTOR PRESENTATION PURPOSES ONLY. 32
Slide 33: ANNOVERA Launch in Perspective
ANNOVERA Launch in Perspective ANNOVERA growing despite pandemic challenges In Person Details at less than 50% of 2019 baseline ANNOVERA holding despite launch brand stagnation Biopharma In-Person Details(1) Comparison of Launches in 2020(2) Avearge Growth % Month over Month 140% Annovera Growth % M
Slide 34: ANNOVERA Leading Indicators for Potential Future Growth
ANNOVERA Leading Indicators for Potential Future Growth 2020 ANNOVERA Quarterly TRx 2021 ANNOVERA Weekly TRx 5,950 539 5,160 507 494 503 480 404 342 2,361 2,410 1Q20 2Q20 3Q20 4Q20 1/1/21 1/8/21 1/15/21 1/22/21 1/29/21 2/5/21 2/12/21 Source: Prescription data per Symphony Health PHAST Data. FOR INVE
Slide 35: ANNOVERA Launch Metrics: Value of Each Patient and Total Number of Women on Therapy
ANNOVERA Launch Metrics: Value of Each Patient and Total Number of Women on Therapy • ANNOVERA is the only annual prescription product on the market today • When an ANNOVERA prescription is filled, it represents 13 monthly equivalent fills, providing a woman contraception for a year • For comparison
Slide 36: 13 TRx of Net Revenue Upfront: Significant Increase in Annual Value of Patient
13 TRx of Net Revenue Upfront: Significant Increase in Annual Value of Patient ANNOVERA Annual Value of Patient Key Takeaway 1 TRx = Current Net Revenue of $1,336 Every ANNOVERA 13 monthly equivalent TRx received upfront patient produces 2-3x the net revenue of other Current Annual Value of Patient
Slide 37: ANNOVERA Launch Curve: Aggregate Women on Therapy
ANNOVERA Launch Curve: Aggregate Women on Therapy • From launch until 12/31/20, ~16,000 women have filled an Rx for ANNOVERA • The aggregate amount of women on therapy created significant value for TXMD, because a full year of revenue (13 fills) is realized when the prescription is dispensed • In ad
Slide 38: Symphony Monthly TRx: Spec Pharma Product Launches During COVID-19
Symphony Monthly TRx: Spec Pharma Product Launches During COVID-19 Launch Rank by 4Q2020 TRx Product Category 4Q TRx 12/31/2020 11/30/2020 10/31/2020 9/30/2020 8/31/2020 7/31/2020 6/30/2020 5/31/2020 4/30/2020 SLYND Contraception 76,004 28,150 24,451 23,403 21,113 20,656 18,658 17,511 15,086 14,041
Slide 39: Payor Progress and Birth Control State Laws Supporting Low Out of Pocket Cost
Payor Progress and Birth Control State Laws Supporting Low Out of Pocket Cost ▪ ANNOVERA costs the same or less than the generic for NuvaRing on an annual basis(1) 79% Patient Cost # of Patients % of Patients of our vitaCare $0 2,069 79% ANNOVERA $1 - $60 432 17% patients 80% paid $61 or greater 121
Slide 40: TherapeuticsMD Environmental, Social, and Governance
TherapeuticsMD Environmental, Social, and Governance ▪ ESG is Important to TherapeuticsMD ▪ While TherapeuticsMD has significant milestones to achieve prior to profitability, it is committed to making a positive impact in our communities, particularly for women ▪ TherapeuticsMD’s mission is to impro
Slide 41: TherapeuticsMD Environmental, Social, and Governance
TherapeuticsMD Environmental, Social, and Governance ▪ Environmental ▪ TherapeuticsMD recently moved headquarters to a facility that has automated features that allow TherapeuticsMD to be better environmental stewards, including: ▪ Automatic lighting, water conservation fixtures, etc. ▪ Reduction in
Slide 42: TherapeuticsMD Environmental, Social, and Governance
TherapeuticsMD Environmental, Social, and Governance ▪ Social ▪ TherapeuticsMD’s mission is to improve the quality of life for women, a traditionally underrepresented group ▪ TherapeuticsMD contracts with Title X providers to improve contraceptive access for women ▪ Co-pay cards provide pricing reli
Slide 43: TherapeuticsMD Environmental, Social, and Governance
TherapeuticsMD Environmental, Social, and Governance ▪ Governance ▪ Recently increased gender and racial diversity representation on the Company’s Board of Directors ▪ Would meet Nasdaq’s proposed diversity requirements of one woman and one under-represented minority/LGBTQ+ person on the board FOR I