Back to top

Image: Bigstock

Theravance (TBPH) Q1 Earnings Lag Estimates, Pipeline on Track

Read MoreHide Full Article

Theravance Biopharma, Inc. (TBPH - Free Report) incurred a loss of $1.24 cents per share in the first quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $1.05 but narrower than the year-ago loss of $1.40     

Total revenues of $14.3 million in the quarter also missed the Zacks Consensus Estimate of $17.5 million. Revenues were down 28.2% year over year.

The top line comprised collaboration revenues worth $3.9 million from Janssen, a wholly owned subsidiary of Johnson & Johnson (JNJ - Free Report) , and $10.4 million from the collaboration agreement with Viatris (VTRS - Free Report) 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%.

Shares of Theravance have risen 11.9% so far this year against the industry’s decrease of 8.5%.

Quarter in Detail

Research & development expenses were $67.6 million, up 2.4% from the year-ago quarter.

Selling, general & administrative expenses were up 16.3% year over year to $30.6 million.

As of Mar 31, 2021, Theravance had cash, cash equivalents and marketable securities worth $210 million compared with $292.9 million as of Dec 31, 2020.

2021 Guidance

Theravance expects R&D expense to be in the range of $195-$225 million and SG&A expense between $80 million and $90 million.

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 first quarter, Glaxo recorded sales worth $341 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 nezulcitinib (formerly TD-0903), its lung-selective nebulized JAK inhibitor 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 nezulcitinib versus placebo in hospitalized patients with COVID-19 who require oxygen. Top-line data from the study is expected later this quarter.

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 study for ulcerative colitis are underway. Top-line data from the colitis study is expected to be announced in the third quarter of 2021 while Crohn's disease study data is expected in the fourth quarter of 2021 or the first quarter of 2022.

Also, the company is evaluating ampreloxetine in a phase III study for treating patients with symptomatic neurogenic orthostatic hypotension. Top-line result from the study 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 & Stocks to Consider

Theravance currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Published in