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Theravance's (TBPH) Q4 Earnings and Revenues Miss Estimates
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Theravance Biopharma (TBPH - Free Report) reported fourth-quarter 2022 net loss of 21 cents per share, narrower than the year-ago quarter’s loss of 43 cents. The reported loss was wider than the Zacks Consensus Estimate of a loss of 20 cents per share and on par with our estimate of a loss of 21 cents.
Total revenues of $14.6 million missed the Zacks Consensus Estimate of $18.3 million and our estimate of $26.3 million. Revenues declined 0.02% year over year due to the recognition of non-cash collaboration revenues from J&J’s (JNJ - Free Report) subsidiary, Janssen, in the fourth quarter of 2021.
J&J’s Janssen had a collaboration with Theravance to develop izencitinib for the treatment of inflammatory intestinal diseases, including ulcerative colitis (UC) and Crohn’s disease (CD). However, after the failure in the UC study and Theravance’s decision to close the clinical studies on CD, Janssen terminated the contract, effective Jan 16, 2022. Presently, izencitinib is being developed by Theravance on its own.
Theravance’s shares were up almost 7% on Feb 27 after the fourth-quarter results were announced.
Shares of Theravance have surged 2.8% in the past year against the industry’s 15.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
The top line almost fully comprised Viatris’ (VTRS - Free Report) collaboration revenues worth $14.6 million in relation to Yupelri (revefenacin).
Theravance and Viatris are developing and commercializing Yupelri, a long-acting muscarinic antagonist, as a once-daily nebulized treatment of chronic obstructive pulmonary disease. Viatris and Theravance share U.S. profits and losses related to the commercialization of Yupelri. While Viatris received 65% of the profit, Theravance earned the remaining 35%.
Research & development expenses were $15.3 million, down 51% from the year-ago quarter’s tally. This was driven primarily by start-up costs incurred for the ampreloxetine phase III study.
Selling, general & administrative expenses declined 22% year over year to $16.7 million.
As of Dec 31, 2022, Theravance had cash, cash equivalents and marketable securities worth $327.5 million compared with $486.8 million as of Sep 30, 2022.
2023 Guidance
Theravance expects adjusted research & development expenses (excluding one-time restructuring expenses, legal expenses and share-based compensation) in the $35-$45 million range. Adjusted selling, general and administrative expenses are projected between $45 million and $55 million.
TBPH expects to generate adjusted profit by the second half of 2023.
Other Updates
Theravance plans to prioritize resource allocation toward ampreloxetine phase III study. Ampreloxetine is an investigational, once-daily norepinephrine reuptake inhibitor (NRI) in development for treating patients with symptomatic neurogenic orthostatic hypotension (nOH). TBPH is on track to initiate patient enrollment in ampreloxetine phase III study by the first quarter of 2023.
The company will discontinue investment in its JAK inhibitor program research. The discontinuation will reduce Theravance’s headcount by approximately 17%. TBPH plans to complete the reductions by March 2023.
In September, Theravance initiated a $250 million capital return program. This included purchasing GSK ‘s entire equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per share.
TBPH has authorized a $75 million increase to the existing $250 million capital return program, bringing the total value to $325 million. The company has repurchased $155 million of stock, including $17 million in 2023. The remaining $170 million is expected to be completed by the end of 2023.
CRISPR Therapeutics' loss per share estimates for 2023 has narrowed from $8.21 to $7.53 in the past 30 days.
CRSP's earnings beat estimates in two of the last four quarters and missed the mark in the other two, the average surprise being 3.19%. The stock has declined 20.2% in the past year.
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Theravance's (TBPH) Q4 Earnings and Revenues Miss Estimates
Theravance Biopharma (TBPH - Free Report) reported fourth-quarter 2022 net loss of 21 cents per share, narrower than the year-ago quarter’s loss of 43 cents. The reported loss was wider than the Zacks Consensus Estimate of a loss of 20 cents per share and on par with our estimate of a loss of 21 cents.
Total revenues of $14.6 million missed the Zacks Consensus Estimate of $18.3 million and our estimate of $26.3 million. Revenues declined 0.02% year over year due to the recognition of non-cash collaboration revenues from J&J’s (JNJ - Free Report) subsidiary, Janssen, in the fourth quarter of 2021.
J&J’s Janssen had a collaboration with Theravance to develop izencitinib for the treatment of inflammatory intestinal diseases, including ulcerative colitis (UC) and Crohn’s disease (CD). However, after the failure in the UC study and Theravance’s decision to close the clinical studies on CD, Janssen terminated the contract, effective Jan 16, 2022. Presently, izencitinib is being developed by Theravance on its own.
Theravance’s shares were up almost 7% on Feb 27 after the fourth-quarter results were announced.
Shares of Theravance have surged 2.8% in the past year against the industry’s 15.9% decline.
Image Source: Zacks Investment Research
Quarter in Detail
The top line almost fully comprised Viatris’ (VTRS - Free Report) collaboration revenues worth $14.6 million in relation to Yupelri (revefenacin).
Theravance and Viatris are developing and commercializing Yupelri, a long-acting muscarinic antagonist, as a once-daily nebulized treatment of chronic obstructive pulmonary disease. Viatris and Theravance share U.S. profits and losses related to the commercialization of Yupelri. While Viatris received 65% of the profit, Theravance earned the remaining 35%.
Research & development expenses were $15.3 million, down 51% from the year-ago quarter’s tally. This was driven primarily by start-up costs incurred for the ampreloxetine phase III study.
Selling, general & administrative expenses declined 22% year over year to $16.7 million.
As of Dec 31, 2022, Theravance had cash, cash equivalents and marketable securities worth $327.5 million compared with $486.8 million as of Sep 30, 2022.
2023 Guidance
Theravance expects adjusted research & development expenses (excluding one-time restructuring expenses, legal expenses and share-based compensation) in the $35-$45 million range. Adjusted selling, general and administrative expenses are projected between $45 million and $55 million.
TBPH expects to generate adjusted profit by the second half of 2023.
Other Updates
Theravance plans to prioritize resource allocation toward ampreloxetine phase III study. Ampreloxetine is an investigational, once-daily norepinephrine reuptake inhibitor (NRI) in development for treating patients with symptomatic neurogenic orthostatic hypotension (nOH). TBPH is on track to initiate patient enrollment in ampreloxetine phase III study by the first quarter of 2023.
The company will discontinue investment in its JAK inhibitor program research. The discontinuation will reduce Theravance’s headcount by approximately 17%. TBPH plans to complete the reductions by March 2023.
In September, Theravance initiated a $250 million capital return program. This included purchasing GSK ‘s entire equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per share.
TBPH has authorized a $75 million increase to the existing $250 million capital return program, bringing the total value to $325 million. The company has repurchased $155 million of stock, including $17 million in 2023. The remaining $170 million is expected to be completed by the end of 2023.
Theravance Biopharma, Inc. Price and Consensus
Theravance Biopharma, Inc. price-consensus-chart | Theravance Biopharma, Inc. Quote
Zacks Rank & Stock to Consider
Theravance currently sports a Zacks Rank #1 (Strong Buy).
Another top-ranked stock in the same sector is CRISPR Therapeutics (CRSP - Free Report) . CRISPR Therapeutics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRISPR Therapeutics' loss per share estimates for 2023 has narrowed from $8.21 to $7.53 in the past 30 days.
CRSP's earnings beat estimates in two of the last four quarters and missed the mark in the other two, the average surprise being 3.19%. The stock has declined 20.2% in the past year.