By Shares of Theratechnologies took a hit on Wednesday morning as the company announced lower sales in its fiscal second quarter, prompting cost-saving measures. At 10:28 a.m. ET, shares in Toronto fell by nearly 16%, reaching 1.06 Canadian dollars or 80 U.S. cents.
The dual-listed Canadian biopharmaceutical firm reported revenue of $17.5 million for the three-month period ending on May 31, marking an 8.9% decline compared to the previous year. This figure fell short of analysts’ expectations, who predicted revenue to rise to $21.9 million according to FactSet data.
Theratechnologies attributed the decline in sales to a 4.9% drop in its main drug line, Egrifta, which is an injectable medication used to reduce excess abdominal fat in HIV patients. Additionally, sales of Trogarzo, an antiretroviral medication used in combination therapy for multidrug-resistant HIV, plummeted by nearly 15%.
CEO and President Paul Levesque explained that the decrease in second-quarter revenues was due to specialty pharmacies building up larger inventories than necessary at the end of 2022 in anticipation of higher demand.
To address the elevated inventory and ensure their profitability plans remain on track, Theratechnologies is implementing cost-saving measures. These measures include a $5.5 million reduction in research and development capacity.
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