TherapeuticsMD (NASDAQ: TXMD) is a pharmaceutical company that licenses its women's health drug portfolio to third parties in exchange for royalties and milestone payments. Revenue comes from a licensing agreement with Mayne Pharma, under which TherapeuticsMD receives royalties on net sales of its products in the United States at a rate of 8.0% on the first $80.0 million in annual net sales and 7.5% on annual net sales above $80.0 million, plus minimum annual royalties of $3.0 million per year for 12 years, adjusted for inflation at 3% annually, per the Mayne License Agreement effective December 30, 2022. One-time milestone payments of $5.0 million, $10.0 million, and $15.0 million are triggered if aggregate U.S. net sales of licensed products reach $100.0 million, $200.0 million, and $300.0 million in a calendar year, respectively. The royalty rate steps down to 2.0% per product upon patent expiration or generic entry. TherapeuticsMD retains IP ownership while Mayne Pharma handles commercialization, with the 20-year royalty term running from the closing date of the transaction.

Revenue model

Royalty income from Mayne Pharma on U.S. net sales of licensed products: 8.0% on the first $80.0 million in annual net sales and 7.5% above $80.0 million, with minimum annual royalties of $3.0 million per year for 12 years (inflation-adjusted at 3% annually). Additional one-time milestone payments up to $30.0 million tied to cumulative annual net sales thresholds. Royalty term is 20 years from the December 30, 2022 closing date, per the Mayne License Agreement (10-K, filed 2026-03-30).

Products and services

IMVEXXY (estradiol vaginal inserts, 4 mcg and 10 mcg doses), a women's health product licensed to Mayne Pharma. Patents on IMVEXXY expire in 2032 or 2033. As of December 31, 2025, patent infringement litigation against Sun Pharma related to an ANDA for a generic version of IMVEXXY was ongoing.

Customers and end markets

Mayne Pharma is the sole disclosed licensee and primary revenue counterparty. End market is U.S. women's health, specifically products addressing conditions treated by IMVEXXY. Customer concentration is effectively 100% in Mayne Pharma under the current licensing structure.

Value-chain role

IP licensor. TherapeuticsMD holds patents on its women's health drug products and licenses commercialization rights to Mayne Pharma, which is responsible for sales, distribution, and patent enforcement under the Mayne License Agreement.

Geographic exposure

United States only, based on the Mayne License Agreement covering U.S. net sales (10-K, filed 2026-03-30).

Source: SEC 10-K, filed 2026-03-30

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