Theravance Biopharma TBPH reported third-quarter 2024 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company had incurred an adjusted loss of 1 cent per share.
The reported loss excludes share-based compensation expense, non-cash impairment of long-lived assets, income tax expense and non-cash interest expense. Including these items, the company reported a loss of 26 cents per share in the third quarter compared with a loss of 17 cents in the year-ago quarter.
Total revenues came in at $16.9 million, beating the Zacks Consensus Estimate of $16 million. Revenues rose 8% year over year owing to increased collaboration revenues from partner Viatris VTRS.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
TBPH’s Q3 Results in Detail
The top line fully comprised Viatris’ collaboration revenues in relation to Yupelri (revefenacin) sales. Theravance and Viatris have collaborated for the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease.
Viatris and Theravance share U.S. profits and losses received in connection with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris collaboration revenues include Theravance’s 35% share of net sales of Yupelri, as well as its proportionate amount of the total shared costs incurred by the two companies.
VTRS recognizes product sales from Yupelri and also owns a stake in Theravance.
Shares of Theravance have plunged 20.7% year to date compared with the industry’s decline of 0.1%.
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Research and development expenses (excluding share-based compensation) totaled $8.2 million, up almost 30% from the year-ago quarter’s level. Selling, general and administrative expenses (excluding share-based compensation) increased around 10% year over year to $13 million.
As of Sept. 30, 2024, Theravance had cash, cash equivalents and marketable securities worth $91.4 million compared with $96.1 million as of June 30, 2024.
TBPH Reiterates 2024 Financial Guidance
Theravance continues to expect adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.
TBPH continues to expect share-based compensation expenses of $18-$22 million in 2024.
TBPH expects the levels of both adjusted losses and cash burn in the second half of 2024 to be the same as in the first half of 2024.
TBPH’s Pipeline Updates
Theravance is developing an investigational candidate, ampreloxetine (TD-9855), a norepinephrine reuptake inhibitor for the treatment of neurogenic orthostatic hypotension (nOH) in patients with multiple system atrophy (MSA). The FDA has granted Orphan Drug designation to ampreloxetine for the given indication.
The company initiated the phase III CYPRESS study evaluating ampreloxetine for nOH MSA earlier in 2024. The CYPRESS study is expected to complete patient enrollment by mid-2025. Top-line data from the same is expected six months after enrollment is completed. TBPH plans to submit regulatory filings for ampreloxetine if the study data is found to be positive.
Theravance Biopharma, Inc. Price and Consensus
Theravance Biopharma, Inc. price-consensus-chart | Theravance Biopharma, Inc. Quote
Other Updates Regarding TBPH
With the purpose of maximizing shareholder value, Theravance announced the formation of a Strategic Review Committee, composed entirely of independent directors, to assess all strategic alternatives available to the company, including those related to Yupelri, ampreloxetine and Trelegy. However, the company has not provided any assurance that the strategic review process will result in any transaction. Further updates will be shared later.
In September 2024, Theravance and Viatris entered into a settlement agreement with Qilu Pharmaceutical regarding Yupelri. The settlement agreement resolves the ongoing patent litigation brought by TBPH and VTRS against Qilu after Qilu filed a regulatory application seeking approval to market a generic version of Yupelri in the United States, infringing upon listed patents for the drug.
Per the terms of the settlement agreement, Theravance and Viatris have granted Qilu a license to produce and sell a generic version of Yupelri in the United States, starting April 23, 2039, subject to certain customary exceptions. This settlement is under review by the U.S. Department of Justice and Federal Trade Commission, while patent litigation continues against three other generic applicants.
TBPH’s Zacks Rank & Other Stocks to Consider
Theravance currently carries a Zacks Rank #2 (Buy).
Some other top-ranked pharma stocks are Allogene Therapeutics ALLO and Biogen BIIB, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allogene Therapeutics’ loss estimates per share have narrowed from $1.41 to $1.36 for 2024 over the past 60 days, while that for 2025 has narrowed from $1.46 to $1.36 per share. ALLO’s shares have lost 11.5% year to date.
Allogene Therapeutics’ earnings beat estimates in three of the trailing four quarters and matched once, delivering an average surprise of 9.42%.
Biogen’s earnings estimates have risen from $16.12 to $16.38 per share for 2024 over the past 60 days, while that for 2025 has increased from $17.09 to $17.16. BIIB’s shares have lost 35% year to date.
Biogen’s earnings beat estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 9.99%.
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