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Theravance (TBPH) Q4 Earnings Top Estimates, Revenues In Line

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Theravance Biopharma, Inc. (TBPH - Free Report) incurred a loss of 92 cents per share in the fourth quarter, narrower than the Zacks Consensus Estimate of a loss of $1.03 and the year-ago loss of $1.17.

Although total revenues of $18.7 million in the quarter were almost in line with the Zacks Consensus Estimate, the same decreased 36.5% year over year, mainly due to absence of licensing revenues in the reported quarter.

The top line comprised collaboration revenues worth $7.1 million from Janssen, a wholly owned subsidiary of Johnson & Johnson (JNJ - Free Report) , and $11.6 million from the collaboration agreement with Viatris (VTRS - Free Report) (formerly known as Mylan) in relation to Yupelri (revefenacin).

Theravance and Viatris have joined forces for the development and commercialization of Yupelri, a long-acting muscarinic antagonist, as a once-daily nebulized treatment of chronic obstructive pulmonary disease (“COPD”). Viatris and Theravance are sharing U.S. profits and losses related to commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance gets 35%.

Yupelri’s share of the nebulized COPD market increased to 18.6% through November 2020 compared with 17.4% in September 2020. Per the company, despite the COVID-19 pandemic woes which dwindled overall market demand, Yupelri expanded its market share in 2020 and is likely to grow its market share and sales in 2021 and beyond.

Shares of Theravance have decreased 0.6% so far this year against the industry’s increase of 4.9%.

price chart for TBPH

Quarter in Detail

Research & development expenses were $65.2 million, down 2.7% from the year-ago quarter.

Selling, general & administrative expenses declined 8.8% year over year to $30.1 million.

As of Dec 31, 2020, Theravance had cash, cash equivalents and marketable securities worth $292.9 million compared with $358.3 million as of Sep 30, 2020.

Full-Year Results

For 2020, Theravance generated revenues of $71.9 million, reflecting a decrease of 2.1% year over year.

For the same period, the company reported loss of $4.46 per share compared with the year-ago loss of $4.25 per share.

Updates on Pipeline

Theravance holds an economic interest in royalties earned from GlaxoSmithKline (GSK - Free Report) on the triple combination COPD treatment Trelegy Ellipta’s global sales. In the fourth quarter, Glaxo recorded sales worth $315 million from Trelegy Ellipta. Theravance is eligible to receive 5.5-8.5% tiered royalties on the product's worldwide net sales.

Theravance is evaluating TD-0903, its lung-selective nebulized Janus kinase inhibitor (JAKi), for the potential treatment of hospitalized patients with acute lung injury caused by COVID-19. The candidate is currently being evaluated in a two-part phase II study comparing TD-0903 versus placebo in hospitalized patients with COVID-19 who requires oxygen.

Along with its earnings release, Theravance reported encouraging data from part 1 of the above-mentioned two-part phase II study which evaluated three once-daily doses (1 mg, 3 mg, 10 mg) of TD-0903.

Data from the study showed that treatment with TD-0903 demonstrated numerical improvements in clinical outcome and duration of hospital stay and fewer deaths as compared to placebo.

Meanwhile, TD-0903 (3 mg dose) is currently being evaluated in part 2 of the phase II study, with data from the same being expected in the second quarter of 2021.

This apart, Theravance is developing its JAK inhibitor Izencitinib for the treatment of inflammatory intestinal diseases. A phase II study on Izencitinib for treating Crohn's disease and a phase IIb/III study for ulcerative colitis are underway. Data from both studies are expected to be announced separately in the third quarter of 2021.

Also, the company is evaluating ampreloxetine under various phase III programs for treating patients with symptomatic neurogenic orthostatic hypotension (nOH). Top-line results from the same are expected in the third quarter of 2021.

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

Theravance Biopharma, Inc. price-consensus-eps-surprise-chart
| Theravance Biopharma, Inc. Quote

Zacks Rank

Theravance currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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