Penny Stock Pops on Licensing Partnership

TXMD has closed flat or higher for the past five sessions

Pharmaceutical name TherapeuticsMD Inc (NASDAQ:TXMD) is up 2.2% at $3.29, after the company shared that it has entered an agreement to commercialize its two women's menopausal drugs, Bijuva and Imvexxy, outside the U.S. The deal will bring in ?,?14 million up front, and another ?,?29.5 million following sales, met milestones, and royalties. The only analyst to weigh in so far has been Cantor Fitzgerald, which, while keeping hold of its "overweight" rating and $27 price target, said they "believe the non-dilutive upfront capital this agreement provides will help TXMD fund its U.S. product launches."

TXMD has shed 55% over the past 12 months, but following today's surge, is eyeing its first close above the 20-day moving average since mid-May. The shares recently turned higher after touching a bottom of $2.93 last Wednesday, May 29, and are now pacing toward their sixth straight close without a decline.

Overall, six of the seven analysts following ThereapeuticsMD stock sport a "strong buy" rating, with not a single "sell" in sight. This optimistic sentiment is echoed within the stock's average 12-month price target of $15.83 -- an unbelievable 393% premium to Thursday's close of $3.21.

Lastly, short interest has increased 8.6% during the past two reporting periods, and now accounts for 42.4% of the stock's float. In other words, it would take shorts nearly six weeks to cover their bearish bets, based on average daily trading volumes.