Mangoceuticals Inc. (NASDAQ:MGRX) shares are surging on Monday. However, there is no news to justify the movement.
The momentum could be due to last week’s announcement of a lawsuit seeking damages exceeding 73 million dollars against its former technology partner, Clarity Ventures.
Lawsuit Details
The lawsuit, filed in Texas state court, alleges that Clarity failed to deliver a fully functional, HIPAA-compliant enterprise resource planning and eCommerce platform, which was crucial for Mangoceuticals’ operations.
Clarity has denied these allegations and filed counterclaims regarding unpaid invoices, which Mangoceuticals asserts are unwarranted as all required payments were made before disengagement.
Shift To In-House Platform Strengthens Mangoceuticals Operations
In response to the issues with Clarity, the company has independently developed a new proprietary telehealth and eCommerce platform, which management believes has improved customer acquisition and order fulfillment.
This strategic pivot highlights Mangoceuticals’ commitment to enhancing its operational performance despite ongoing litigation.
Following the events described in the complaint, Mangoceuticals said it independently developed and deployed a new proprietary telehealth and e-commerce platform designed to support its operations.
The company’s current platform was developed internally and does not rely on Clarity’s technology.
Mangoceuticals TRT Program Gains Traction With Strong Sales Growth
In February, Mangoceuticals, which sells men’s health products under the MangoRx brand, reported momentum for its $99-per-month injectable testosterone replacement therapy (TRT) program.
Since launching in mid-December, month-over-month sales for the injectable TRT program have climbed 336%, while customer acquisition costs have fallen 54%, the company said in an update.
Management expects TRT to be the primary growth driver as MangoRx expands both injectable and oral options, including its PRIME capsule, powered by Kyzatrex.
In March, Mangoceuticals filed a Patent Cooperation Treaty (PCT) international application to secure broad global patent protection for the antiviral animal feed and drinking water additive technology that powers MGX-0024.
MGRX Stock Price Activity: Mangoceuticals shares were up 109.51% at $0.34 at the time of publication on Monday, according to Benzinga Pro data.
Image via Shutterstock