DARE - TherapeuticsMD cut to neutral at H.C. Wainwright on private equity acquisition

H.C. Wainwright has downgraded TherapeuticsMD to neutral from buy following its recent agreement to be acquired by private equity firm EW Healthcare Partners. Analyst Douglas Tsao noted that the acquisition price represents ~367% premium to TherapeuticsMD's (NASDAQ:TXMD) closing price on May 27. The acquisition is expected to complete on or before July 13. Tsao noted that the buyout is the second from a private equity firm for a women's health company in 18 months after AMAG Pharmaceuticals was taken private in November 2020. The buyouts "suggest public investors didn't fully appreciate the value of their commercial franchises and pipelines, which we believe could be said more broadly for companies targeting women's health," he wrote. He added that Dare Bioscience (DARE), also in women's healthcare and which he rates a buy, could see upside. Seeking Alpha's Quant Rating views Dare (DARE) as a hold.

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TherapeuticsMD cut to neutral at H.C. Wainwright on private equity acquisition