Business Overview and History Mangoceuticals, Inc. (MGRX) is a company focused on developing, marketing, and selling a variety of men’s health and wellness products in the areas of erectile dysfunction (ED), hair growth, weight loss, and hormone replacement therapies. The company’s mission is to provide innovative and accessible solutions to address the growing demand for men’s healthcare services and products.
Mangoceuticals was incorporated in the State of Texas on October 7, 2021, with the intent of focusing on developing, marketing, and selling a variety of men’s wellness products and services via a telemedicine platform. The company has identified men’s wellness telemedicine services and products as a growing sector in the most recent years, especially related to the areas of erectile dysfunction (ED), hair loss, testosterone replacement or enhancement therapies, and weight management treatments.
In March 2023, Mangoceuticals completed its initial public offering (IPO), issuing and selling 83,330 shares of common stock for net proceeds of $4.35 million. As part of the same registration statement, the company also registered the sale of an additional 317,670 shares of common stock, including 133,330 shares issuable upon the exercise of outstanding warrants.
Following its IPO, in December 2023, the company entered into another underwriting agreement and completed a follow-on public offering, selling 266,670 shares of common stock for total gross proceeds of $1.2 million. The net proceeds from this offering were used to finance marketing and operational expenses associated with its products, develop and maintain software, and for working capital and other general corporate purposes.
During 2023 and 2024, Mangoceuticals faced challenges while migrating from its previous telemedicine platform to a newly developed platform, which resulted in a delay in marketing activities. The company has relied on related party loans and funds raised through the sale of securities to support its operations since inception, as it has experienced recurring net losses.
To date, Mangoceuticals has developed and is commercially marketing a new brand of ED products under the brand name “Mango,” a new brand of hair loss products under the brand name “Grow,” a new brand of hormone balance and therapy products under the name “Mojo,” and new brands of weight loss products under the brand names “Slim” and “Trim.” These Compounded Products are produced at a compounding pharmacy using a proprietary combination of U.S. Food and Drug Administration (FDA) approved ingredients.
In addition to its Compounded Products, Mangoceuticals is also marketing and selling an FDA approved form of oral testosterone undecanoate to treat low testosterone in men and as a form of Testosterone Replacement Therapy (TRT), developed and produced by Marius Pharmaceuticals, Inc. under the brand name “Prime powered by Kyzatrex.”
Mangoceuticals is currently marketing and selling Prime and its Compounded Products exclusively online via its website at http://www.MangoRx.com. Product availability varies by state, with details available on the company’s website.
Product Segments
Mango ED The Mango ED product is a compounded medication produced at a compounding pharmacy and made available to patients upon a prescribing physician’s determination that the compounded drug is necessary for the individual patient. The Mango ED product includes either Sildenafil (the active ingredient in Viagra) or Tadalafil (the active ingredient in Cialis), as well as Oxytocin and L-Arginine. Mangoceuticals currently offers two dosage levels of the Mango ED product.
Grow by MangoRx The Grow by MangoRx product is also produced at a related party compounding pharmacy and made available to patients upon a prescribing physician’s determination. The Grow product includes Minoxidil (the active ingredient in Rogaine), Finasteride (the active ingredient in Propecia), Vitamin D3, and Biotin. The Grow product is formulated as a convenient chewable, mint-flavored rapid dissolve tablet (RDT).
Mojo by MangoRx The Mojo by MangoRx product is another compounded medication produced at a related party compounding pharmacy and made available to patients upon a prescribing physician’s determination. Mojo includes Dehydroepiandrosterone (DHEA), Pregnenolone, and Enclomiphene Citrate (an active ingredient in the FDA-approved drug Clomid). Mojo is also formulated as a chewable, mango-flavored RDT.
Prime by MangoRx, Powered by Kyzatrex Prime by MangoRx, powered by Kyzatrex, is an FDA-approved oral Testosterone Replacement Therapy (TRT) product manufactured by Marius Pharmaceuticals. This prescription drug is used to treat adult men who have low or no testosterone levels due to certain medical conditions.
Slim by MangoRx The Slim by MangoRx product is a compounded medication produced at a related party compounding pharmacy and made available to patients upon a prescribing physician’s determination. Slim includes Vitamin B6 and Semaglutide (the active ingredient used in an FDA-approved drug). Slim is formulated as a chewable, mint-flavored RDT, with four different dosage levels available.
Trim by MangoRx The Trim by MangoRx product is a compounded medication produced at a related party compounding pharmacy and made available to patients upon a prescribing physician’s determination. Trim includes the active ingredient Tirzepatide, which is used in an FDA-approved drug. Trim is formulated as a chewable, citrus-flavored RDT, with three different dosage levels available.
Financial Overview For the year ended December 31, 2023, Mangoceuticals reported total revenue of $731,490 and a net loss of $9,212,417. The company’s operating cash flow for the year was ($6,997,375) and free cash flow was ($7,000,894). As of December 31, 2023, Mangoceuticals had $739,010 in cash and cash equivalents and total assets of $1,050,790.
For the nine months ended September 30, 2024, Mangoceuticals reported total revenue of $510,630 and a net loss of $6,760,000. The company’s operating cash flow for the nine-month period was ($3,730,000) and free cash flow was ($3,730,000). As of September 30, 2024, Mangoceuticals had $73,910 in cash and cash equivalents and total assets of $14,790,000.
In the most recent quarter (Q3 2024), Mangoceuticals reported revenue of $133,370, a net loss of $1,990,000, operating cash flow of ($1,170,000), and free cash flow of ($1,170,000). Revenue decreased by 45.60% year-over-year due to issues arising while the Company migrated from its previous telehealth platform to its newly developed telehealth platform, resulting in a delay in marketing activities of the Company’s products.
The company’s recent financial performance has been impacted by increased operating expenses related to marketing, advertising, investor relations, and stock-based compensation. Mangoceuticals has also incurred significant costs associated with the development and migration of its telemedicine platform, as well as the acquisition of intellectual property related to its respiratory illness prevention technology.
Currently, Mangoceuticals only sells its products in the United States.
Liquidity and Capital Resources As of September 30, 2024, Mangoceuticals had a working capital deficit of $1.30 million and a total accumulated deficit of $17.99 million. The company has primarily relied on related party loans, as well as funds raised through the sale of securities, including a private placement offering, an initial public offering, a follow-on offering, the sale of Series B Convertible Preferred Stock, and shares of common stock pursuant to an equity line of credit (ELOC), to support its operations since inception.
Key financial ratios as of September 30, 2024: – Debt/Equity ratio: 0.014003689057158876 – Current ratio: 0.07479398181089018 – Quick ratio: 0.06529766807390062
The company had $73,910 in cash and cash equivalents as of September 30, 2024. No available credit line has been disclosed.
In April 2024, Mangoceuticals entered into a Securities Purchase Agreement (SPA) with an institutional accredited investor, pursuant to which the company agreed to sell up to $2.75 million of Series B Convertible Preferred Stock and warrants to purchase up to 320,000 shares of common stock. The company has also entered into an ELOC with the same investor, pursuant to which the investor has committed to purchase up to $25 million of the company’s common stock.
While Mangoceuticals has been able to raise additional capital to fund its operations, the company’s current capital resources are not expected to be sufficient to fund operations for the next 12 months. The company will likely need to raise additional funding, potentially through the offering of debt or equity, to support its existing operations and any future expansion of its business, including the ability to execute its growth strategy.
Risks and Challenges Mangoceuticals faces several risks and challenges that could impact its future performance and growth. These include the company’s limited operating history, its dependence on related party transactions, the potential for product liability and litigation, and the highly competitive nature of the men’s health and wellness market.
Additionally, the company’s Compounded Products are not approved by the FDA and are instead produced and sold under an exemption provided by Section 503A of the Federal Food, Drug, and Cosmetic Act. This exposes Mangoceuticals to regulatory risks and uncertainties, as the FDA may determine that the compounding of its products does not fall within the 503A exemption.
The company’s recent acquisition of intellectual property related to respiratory illness prevention technology also introduces new risks, as the company must successfully navigate the research, development, and commercialization of this technology to realize its full potential.
Mangoceuticals also faces risks related to data security, intellectual property protection, and the potential for economic downturns, pandemics, and geopolitical tensions to adversely impact its operations and financial performance.
Outlook and Recent Developments In recent months, Mangoceuticals has made several strategic moves to strengthen its position in the men’s health and wellness market. The company has completed the migration of its telemedicine platform to a DEA-approved system, allowing it to prescribe and offer controlled substances, including its Prime product.
Mangoceuticals has also announced the launch of its innovative oral tirzepatide and semaglutide-based weight loss treatments, branded as “TRIM” and “Slim,” respectively. These new products target the rapidly growing GLP-1 receptor agonist market, which is expected to reach $49.3 billion globally by 2030.
Additionally, the company has secured a strategic partnership with the International Society of Frontier Life Sciences and Technology (ISFLST) for the distribution of its products in China, the Asia Pacific region, and Latin America (excluding Mexico). This agreement represents a significant milestone in Mangoceuticals’ global expansion strategy.
In a recent development, Mangoceuticals announced that it has initiated a formal review process to evaluate potential strategic alternatives for the company, including but not limited to potential mergers, acquisitions, divestitures, and business combinations. The company has not set a definitive timetable for the completion of this review process and does not intend to make further public comments until the review is completed or a disclosure is required by law.
Conclusion Mangoceuticals, Inc. (MGRX) is a diversified player in the men’s health and wellness market, offering a range of innovative products and services through its telemedicine platform. The company has faced several challenges, including limited operating history, regulatory risks, and the need for additional funding to support its growth. However, Mangoceuticals has also demonstrated its ability to adapt and expand its product offerings to capitalize on emerging trends, such as the growing demand for GLP-1 receptor agonist treatments for weight loss.
As the company navigates the strategic review process and continues to execute on its growth strategy, investors will closely monitor Mangoceuticals’ ability to generate sustainable revenue, manage its operating expenses, and secure the necessary funding to support its long-term success. The company’s ability to navigate the regulatory landscape, protect its intellectual property, and differentiate itself in the highly competitive men’s health and wellness market will be key factors in determining its future performance.
Disclaimer: This article is for informational purposes only. It does not constitute financial, legal, or other types of advice. While every effort has been made to ensure the accuracy of the information presented here, the author and the publisher do not make any guarantees about the completeness, reliability, and accuracy of this information.