Delve into an Underappreciated Health Care Niche with TherapeuticsMD

While so many health care companies are busy focusing on Covid-19, let’s not ignore other important high-need areas. An excellent example would be TherapeuticsMD (NASDAQ:TXMD), which focuses exclusively on developing and commercializing novel health products for women. After some basic analysis, you might find that TXMD stock is grossly undervalued.

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For the gentlemen out there in the trading world, don’t stay on the sidelines just because you’re unfamiliar with TherapeuticsMD’s product line. It only takes a little bit of effort and research to understand the value of this company’s life-enhancing pharmaceutical offerings.

As with all health care stocks, there’s risk involved if you’re going to take a position in TXMD stock. Indeed, 2020 has been a year of enhanced volatility in the drugmaker sector.

That being said, it might be a relief to take a quick break from Covid-19 stocks and take a closer look at TXMD. After learning about this unique niche opportunity, you might find yourself taking a moderately sized position on TXMD stock.

A Closer Look at TXMD Stock

As I alluded to earlier, TXMD stock is severely undervalued. If you adhere to the policy of buying stocks when they’re trading at a low price point, then you definitely ought to put TXMD on your watch list.

Note that, momentum-focused traders might not like the fact that TXMD stock has fallen from $6 to $1 and change within the past five years. I won’t deny that it takes a true contrarian to scoop up shares of this stock.

On the bright side, it’s worth noting that TXMD tends to have sharp price spikes from time to time. Two of these spikes occurred in April and July of this year.

However, long-term investors should believe in the company and its products if they’re going to hold on to TXMD stock. Let’s home in on TherapeuticsMD, then, and decide if there’s a viable market opportunity here.

Layers of Protection

Among TherapeuticsMD’s most well-known products is ANNOVERA. The company bills this as “the first and only long-lasting, patient-controlled, procedure-free, reversible prescription contraceptive option for women.”

A hormonal birth control solution, ANNOVERA involves no invasive procedures and is 97% effective. It’s low-maintenance and comfortable, and it’s tech-enhanced with a tracking app for your phone.

Also, the U.S. Food and Drug Administration’s (FDA) maintains a list of Approved Drug Products with Therapeutic Equivalence Evaluations, commonly known as the Orange Book. On Sept. 8, the United States Patent and Trademark Office issued its second ANNOVERA patent to be listed in the Orange Book.

Additionally, a third patent for ANNOVERA received a scheduled issuance date of Sept. 22. TherapeuticsMD CEO Robert Finizio noted the significance of these developments in regard to ANNOVERA:

“These additional patents, which cover different aspects of ANNOVERA, provide independent layers of patent protection… As part of our intellectual property strategy, we continue to fortify ANNOVERA’s patent portfolio to provide lasting durability for our flagship product.”

Treating the Heat

I’ll be the first to admit that I didn’t come up with the “Treat the Heat” catch phrase. I discovered it on the home page for BIJUVA, a drug presented as “the FIRST AND ONLY FDA-approved combination of bio-identical estradiol and bio-identical progesterone in a single daily oral capsule.”

TherapeuticsMD designed BIJUVA to alleviate vasomotor symptoms associated with hot flashes while also diminishing risk to the lining of the uterus. Vasomotor symptoms, as reported by TherapeuticsMD, “affect 60% to 80% of women entering menopause.”

In an encouraging development, Health Canada recently approved BIJUVA to treat moderate to severe vasomotor symptoms in women with an intact uterus. As a convenient single oral capsule, BIJUVA will be available in two strengths in Canada.

Additionally, in 2018, TherapeuticsMD signed a license agreement granting Knight Therapeutics (OTCMKTS:KHTRF) exclusive Canadian commercialization rights for BIJUVA. However, according to the terms of the agreement, Knight Therapeutics will pay TherapeuticsMD a milestone fee for BIJUVA’s regulatory approval in Canada.

The Bottom Line

Therefore, because it’s not a famous Covid-19 vaccine stock, TXMD stock might not be well-known in the trading community. This presents an opportunity for investors to get involved in an underappreciated niche sector.

Thus, it’s a great time to expand your horizons and consider a position in a crucial health care segment. If you’re ready to give it a chance, try TXMD stock as it’s trading at an attractive price point.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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