TherapeuticsMD Inc

therapeuticsmd.com

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.