In the competitive world of small-cap biotechnology, CorMedix (CRMD Quick QuoteCRMD - Free Report) and Theravance Biopharma (TBPH Quick QuoteTBPH - Free Report) stand out as two companies working to turn scientific progress into lasting profits. Both companies, having a market cap of less than $1 billion, operate in niche therapeutic markets and share the defining traits of small-cap biotechs — limited product portfolios, high dependency on successful execution and outsized potential for investors who can stomach volatility.

CorMedix’s lead product, DefenCath (Taurolidine + Heparin), received FDA approval in late 2023 as the first and only antimicrobial catheter lock solution available in the United States. It is indicated for reducing catheter-related bloodstream infections (CRBSIs) in adult patients with kidney failure undergoing chronic hemodialysis through a central venous catheter.

Although Theravance’s commercial portfolio lacks a marketed product, the company has collaborated with Viatris (VTRS Quick QuoteVTRS - Free Report) to develop and commercialize Yupelri, as a once-daily, nebulized treatment of chronic obstructive pulmonary disease (COPD).

While both companies carry the typical risks and rewards of small-cap biotech stocks, their paths to growth could not be more different. CorMedix is now executing on a commercial strategy, with DefenCath driving meaningful sales growth. Theravance, on the other hand, is using its stronger balance sheet to advance its late-stage drug program and explore new therapeutic opportunities.

These contrasting strategies highlight two distinct approaches to small-cap biotech investing: one defined by near-term revenue traction, while the other offers longer-term upside tied to clinical progress. With both companies at key turning points and investor interest in small-cap biotech improving, this comparison comes at an ideal time for investors looking to identify the next potential growth story in the sector.

The Case for CRMD Stock

DefenCath is the first approved product in CorMedix’s marketed portfolio, providing the company with a steady income stream. The company launched DefenCath commercially in April 2024 in the inpatient setting and in July 2024 in the outpatient hemodialysis setting.

In the first half of 2025, DefenCath delivered $78.8 million in net revenues, reflecting a solid start to its commercial journey. The drug continues to drive the company’s top line, with third-quarter 2025 revenues expected to reflect strong market adoption and robust year-over-year growth. The drug is supported by patent protection through 2033. This exclusivity provides a long runway for revenue generation.

Looking ahead, sales are expected to build steadily as CorMedix expands its commercial footprint and strengthens its marketing infrastructure. Moreover, eligibility for insurance coverage enhances patient access and should serve as a strong catalyst for growth in the years ahead. CorMedix is also planning future potential label expansion of DefenCath into total parenteral nutrition to increase its customer base.

CRMD also took a significant step toward diversifying its revenues and reducing reliance on DefenCath with the $300 million acquisition of Melinta Therapeutics. This move added seven approved therapies to its portfolio, strengthening its presence in hospital acute care and infectious disease markets. The expanded portfolio not only broadened the company’s revenue base but also created near-term growth opportunities, particularly for Rezzayo, which is being evaluated in a phase III study for prophylaxis of invasive fungal infections, with potential label expansion in 2026.

CorMedix’s acquisition of Melinta is partly a strategic hedge against potential competition in the CRBSI market from established heparin players like Pfizer (PFE Quick QuotePFE - Free Report) and Amphastar Pharmaceuticals. Pfizer and Amphastar market heparin products, Heparin Sodium Injection and Enoxaparin, respectively. PFE and AMPH could leverage their scale, resources and supply chain control to enter CRBSI-specific applications.

CorMedix recently reported preliminary third-quarter 2025 results, with unaudited pro forma net revenues exceeding $125 million, including more than $85 million from DefenCath. Reflecting this momentum and early Melinta portfolio contributions, the company raised its full-year 2025 pro forma net revenue guidance to at least $375 million, up from the prior expected range of $325-$350 million. CorMedix also anticipates adjusted EBITDA of at least $70 million for the quarter, underscoring improved profitability.

The Case for TBPH Stock

The Viatris collaboration is the primary top-line contributor for Theravance. Viatris and TBPH are sharing U.S. profits and losses received in connection with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives the remaining 35%. Meanwhile, Theravance is entitled to low double-digit royalties on ex-U.S. net sales. Viatris recognizes product sales from Yupelri. VTRS also owns a stake in Theravance.

Yupelri is a once-daily nebulized long-acting muscarinic antagonist (LAMA) approved for COPD patients. LAMAs are recognized by international COPD treatment guidelines as a cornerstone of maintenance therapy for COPD, irrespective of the severity of the disease. Yupelri provides COPD patients with access to a nebulized LAMA therapy, offering a consistent 24-hour lung function improvement with the convenience of once-daily dosing delivered through any standard jet nebulizer.

The product has been witnessing strong sales, generating higher profit-sharing revenues for Theravance. Revenues from the Viatris collaboration rose 19% year over year to $34.1 million in the first half of 2025.

Theravance is developing its lead pipeline candidate, ampreloxetine (TD-9855), a norepinephrine reuptake inhibitor for the treatment of symptomatic neurogenic orthostatic hypotension (nOH) in patients with multiple system atrophy (MSA).

The company initiated the phase III CYPRESS study evaluating ampreloxetine for nOH MSA in 2024. In August 2025, the company completed patient enrollment in the CYPRESS study. Top-line data from the same is expected in the first quarter of 2026. Theravance plans a regulatory filing, under the FDA’s priority review pathway, for ampreloxetine if the study data are found to be positive. The candidate enjoys the FDA’s Orphan Drug Designation status for the nOH indication in the United States.

Around mid-2025, Theravance agreed to sell its remaining royalty interest in net sales of Trelegy Ellipta to GSK for $225 million in cash. Following this, Theravance received a one-time cash payment of $225 million, significantly strengthening its balance sheet, reducing near-term financing risk, and extending its cash runway to advance pipeline development. Theravance held some royalty interest in GSK’s COPD medicine, Trelegy Ellipta.

Despite its solid cash position and growing collaboration revenues, Theravancefaces notable challenges that investors should watch closely. The company remains heavily dependent on profit-sharing income from Viatris for Yupelri, as it currently has no wholly owned marketed products. Any disruption in this partnership or slower-than-expected sales growth could weigh on its top line. In addition, Theravance’s prospects hinge on the success of its late-stage candidate ampreloxetine, which has already faced clinical setbacks and enrollment delays in the ongoing late-stage study. A failure to achieve positive results or obtain regulatory approval would significantly limit TBPH’s near-term growth potential.

How Do Estimates Compare for CRMD & TBPH?

The Zacks Consensus Estimate for CorMedix’s 2025 sales and earnings per share (EPS) implies a year-over-year increase of around 488% and 717%, respectively. EPS estimates for 2025 and 2026 have been trending upward over the past 60 days.

CRMD Estimate Movement

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Theravance’s 2025 sales implies a year-over-year increase of around 88%. Its loss per share in 2025 is expected to narrow by 75% compared to the year-ago figure. Loss estimates for both 2025 and 2026 have been narrowing over the past 60 days.

TBPH Estimate Movement

Image Source: Zacks Investment Research

Price Performance and Valuation of CRMD & MIRM

Year to date, shares of CRMD have gained 39.6%, while those of TBPH have rallied 50.5%. In comparison, the industry has returned 10.7%, as seen in the chart below.

Image Source: Zacks Investment Research

From a valuation standpoint, CorMedix is more expensive than Theravance, going by the price/book (P/B) ratio. CRMD’s shares currently trade at 4 times trailing book value, higher than 3.17 for TBPH.

Image Source: Zacks Investment Research

CRMD vs. TBPH: Which Stock is the Stronger Small-Cap Play?

For investors seeking a small-cap biotech with visible earnings momentum and diversified growth potential, CorMedix, carrying a Zacks Rank #2 (Buy), stands out as the better pick over Theravance Biopharma, which currently carries a Zacks Rank #3 (Hold), based on the above discussion. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

CRMD’s strong commercial execution with DefenCath has driven rapid revenue growth and improved profitability, supported by broad adoption across inpatient and outpatient dialysis settings. With expanding insurance coverage, patent protection through 2033, and the successful Melinta acquisition, CorMedix now enjoys a more balanced revenue mix and clearer visibility into sustained growth. This blend of recurring product sales, pipeline expansion, and solid financial momentum positions CRMD for continued profitability, with analysts projecting sharp year-over-year gains in 2025.

Theravance, by contrast, remains heavily dependent on a single partnership for revenue and is betting much of its future on the success of its late-stage ampreloxetine program. Its limited pipeline and lack of fallback assets expose it to higher risk in a sector where clinical setbacks are frequent and costly. While the recent cash infusion provides short-term stability, Theravance’s dependence on collaborators and a single high-stakes drug underscores its execution and pipeline risks versus peers like CRMD. In a market favoring near-term results and commercial traction, CorMedix’s proven revenue engine and strategic diversification make it the more compelling small-cap biotech pick for investors heading into 2026.