Theratechnologies stock rating downgraded to Hold by Jones Trading

Investing.com - Jones Trading downgraded Theratechnologies Inc. (NASDAQ:THTX) from Buy to Hold following the company’s acquisition agreement with CB Biotechnology, an affiliate of Future Pak (Private). The stock, which has delivered an impressive 75% return over the past year and maintains a "GOOD" financial health score according to InvestingPro, currently trades at $2.36.

The acquisition deal values Theratechnologies at $3.01 per share in cash, with an additional contingent value right (CVR) of up to $1.19 per share, potentially bringing the total value to $4.20 per share. With a market capitalization of $108.6 million and solid revenue growth of 13.5% in the last twelve months, InvestingPro analysis suggests the company is currently undervalued relative to its fundamentals.

Jones Trading expects the acquisition to close as planned by November 30, 2025, noting that Theratechnologies has been actively seeking other offers before entering into this agreement with Future Pak.

Based on projected gross profits from Theratechnologies’ products EGRIFTA and TROGARZO over the 36-month post-acquisition period (fiscal years 2026, 2027, and 2028), Jones Trading anticipates the full CVR will be paid out to shareholders.

The research firm believes Theratechnologies shares will likely remain range-bound between $3.01 and $4.20 until the deal closes, considering the offer represents a fair price for the company.

In other recent news, Theratechnologies Inc. has received an acquisition proposal from Future Pak, LLC, potentially valuing the company at up to $255 million. The offer includes a cash payment of $205 million at closing and up to $50 million in additional payments linked to the future profits of Theratechnologies’ EGRIFTA® franchise. This proposal represents a significant premium of 164% to 238% over the company’s closing stock price on April 10, 2025. Future Pak, supported by Colbeck Capital Management, has expressed a commitment to reaching a mutually beneficial agreement with Theratechnologies. Additionally, Theratechnologies announced that the FDA has approved unrestricted distribution of EGRIFTA SV®, a treatment for reducing excess abdominal fat in HIV-infected adults. This approval is set to ease previous supply uncertainties and precedes the introduction of a new formulation, EGRIFTA WR™, in the U.S. market. The company is preparing for a smooth transition to EGRIFTA WR™, which is anticipated to enhance the treatment experience for patients. The FDA’s decision marks a significant regulatory milestone for Theratechnologies, as it aims to redefine standards of care in its specialty areas.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.