With sales falling short of expectations, Theratechnologies (TSX:TH; NASDAQ:THTX) is reducing its R&D head count. Second quarter revenue fell 8.9% to $17.5-million (U.S.) from $19.3-million a year ago.
“Second quarter revenues were negatively impacted by the build-up of larger than necessary inventories by specialty pharmacies at the end of 2022, which was in anticipation of expected higher demand,” Paul Levesque, president and CEO, said in a statement.
The company sells a treatment for HIV infection, Trogarzo, and a treatment for the fat that can accumulate in people infected with the virus, Egrifta.
Theratechnologies also lowered the midpoint of its full-year sales guidance by almost 9% in response to the weak quarter.
“We are implementing further cost saving measures to ensure no setback in our profitability journey,” Mr. Levesque said. “In addition to program reductions already embedded into the 2024 plan, an additional $5.5-million in annualized cost savings will be implemented through a rightsizing of the R&D functions in the company.”
Theratechnologies didn’t provide details but Mr. Levesque said the company is pairing the layoffs with a “decrease in the number and scope of research and development projects.”
Theratechnologies also provided an update on sudocetaxel zendusortide, a cancer prospect that will resume a Phase 1 trial after the FDA recently released it from a clinical hold.
