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Theravance's Q4 Earnings and Revenues Miss Estimates
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Key Takeaways
TBPH Q4 EPS of 6 cents missed the 44-cent estimate. Revenues of $45.9M missed estimates, but rose 145% y/y.
Theravance growth was driven by $25M in Viatris-linked Yupelri milestones; collaboration revenues rose 11%.
Phase III failure ends ampreloxetine. TBPH cuts workforce 50% and explores strategic options, including sales.
Theravance Biopharma (TBPH - Free Report) reported fourth-quarter 2025 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 44 cents. In the year-ago quarter, the company had incurred an adjusted loss of 5 cents per share.
Total revenues in the quarter were $45.9 million, which missed the Zacks Consensus Estimate of $60 million. Revenues surged 145% year over year, driven primarily by $25 million of licensing and milestone revenues from partner Viatris (VTRS - Free Report) tied to Yupelri (revefenacin) sales in the United States.
Year to date, shares of Theravance have lost 25.1% compared with the industry’s 3.1% decline.
Image Source: Zacks Investment Research
TBPH’s Q4 Earnings in Detail
The company’s top line consisted of collaboration revenues, along with licensing and milestone revenues tied to Viatris’ Yupelri sales in the reported quarter.
Collaboration revenues amounted to $20.8 million, up 11.4% year over year. The company also recorded $25 million in licensing and milestone revenues associated with Yupelri sales.
Theravance and VTRS have collaborated on 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.
Research and development expenses (excluding share-based compensation) totaled $6.4 million, down 21% from the year-ago quarter’s level, driven by the near-completion of the CYPRESS study.
Selling, general and administrative expenses (excluding share-based compensation) increased around 6.4% year over year to $15 million.
As of Dec. 31, 2025, Theravance had cash, cash equivalents and marketable securities worth $326.5 million compared with $332.7 million as of Sept. 30, 2025.
TBPH’s Full-Year 2025 Results
For 2025, Theravance reported total revenues of $107.4 million, which rose 67% year over year.
For full-year 2025, the company recorded an adjusted loss of 14 cents per share, narrower than the prior-year reported loss of 33 cents.
TBPH's Pipeline Setback & Program Discontinuation
Earlier this month, Theravance announced top-line data from the pivotal phase III CYPRESS study, which evaluated its lead pipeline candidate, ampreloxetine, a norepinephrine reuptake inhibitor for the treatment of symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy, a progressive brain disorder.
The study failed to meet its primary endpoint in the Orthostatic Hypotension Symptom Assessment composite score. Secondary endpoints were not statistically significant, despite showing biological activity.
Consequently, TBPH decided to wind down the ampreloxetine program.
Following the setback, Theravance’s strategic review committee is accelerating its evaluation of strategic options, including a potential sale of the company, to maximize shareholder value.
Organizational Restructuring & Cost Optimization
Besides the strategic review, the company announced a major organizational restructuring aimed at optimizing its cost structure and sharpening focus on its commercial product, Yupelri. Theravance anticipates reducing its workforce by approximately 50% by shutting down the entire research and development division and cutting roughly 50% of general and administrative staff. These layoffs are expected to occur over the next two quarters.
The restructuring is expected to cut operating costs by approximately 60% relative to the company’s 2025 operating cost of $111.1 million. TBPH anticipates realizing full annualized cost savings of approximately $70 million by the third quarter of 2026.
Combined with continued sales of Yupelri, these savings are projected to drive approximately $60-$70 million in annualized cash flow beginning in the third quarter of 2026.
GSK plc (GSK - Free Report) recorded global net sales of approximately $3.9 billion for Trelegy in 2025, triggering a $50 million milestone payment from Royalty Pharma, received in cash in February. Theravance expects an additional $100 million milestone payment if Trelegy sales reach $3.51 billion in 2026.
TBPH's 2026 Financial Guidance
The company expects around $400 million in cash by the first quarter of 2026, along with the milestone payments for Trelegy and Yupelri.
Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have risen from $2.55 to $2.82. CPRX’s shares have lost 7.8% over the past year.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
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Theravance's Q4 Earnings and Revenues Miss Estimates
Key Takeaways
Theravance Biopharma (TBPH - Free Report) reported fourth-quarter 2025 adjusted earnings of 6 cents per share, which missed the Zacks Consensus Estimate of 44 cents. In the year-ago quarter, the company had incurred an adjusted loss of 5 cents per share.
Total revenues in the quarter were $45.9 million, which missed the Zacks Consensus Estimate of $60 million. Revenues surged 145% year over year, driven primarily by $25 million of licensing and milestone revenues from partner Viatris (VTRS - Free Report) tied to Yupelri (revefenacin) sales in the United States.
Year to date, shares of Theravance have lost 25.1% compared with the industry’s 3.1% decline.
Image Source: Zacks Investment Research
TBPH’s Q4 Earnings in Detail
The company’s top line consisted of collaboration revenues, along with licensing and milestone revenues tied to Viatris’ Yupelri sales in the reported quarter.
Collaboration revenues amounted to $20.8 million, up 11.4% year over year. The company also recorded $25 million in licensing and milestone revenues associated with Yupelri sales.
Theravance and VTRS have collaborated on 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.
Research and development expenses (excluding share-based compensation) totaled $6.4 million, down 21% from the year-ago quarter’s level, driven by the near-completion of the CYPRESS study.
Selling, general and administrative expenses (excluding share-based compensation) increased around 6.4% year over year to $15 million.
As of Dec. 31, 2025, Theravance had cash, cash equivalents and marketable securities worth $326.5 million compared with $332.7 million as of Sept. 30, 2025.
TBPH’s Full-Year 2025 Results
For 2025, Theravance reported total revenues of $107.4 million, which rose 67% year over year.
For full-year 2025, the company recorded an adjusted loss of 14 cents per share, narrower than the prior-year reported loss of 33 cents.
TBPH's Pipeline Setback & Program Discontinuation
Earlier this month, Theravance announced top-line data from the pivotal phase III CYPRESS study, which evaluated its lead pipeline candidate, ampreloxetine, a norepinephrine reuptake inhibitor for the treatment of symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy, a progressive brain disorder.
The study failed to meet its primary endpoint in the Orthostatic Hypotension Symptom Assessment composite score. Secondary endpoints were not statistically significant, despite showing biological activity.
Consequently, TBPH decided to wind down the ampreloxetine program.
Following the setback, Theravance’s strategic review committee is accelerating its evaluation of strategic options, including a potential sale of the company, to maximize shareholder value.
Organizational Restructuring & Cost Optimization
Besides the strategic review, the company announced a major organizational restructuring aimed at optimizing its cost structure and sharpening focus on its commercial product, Yupelri. Theravance anticipates reducing its workforce by approximately 50% by shutting down the entire research and development division and cutting roughly 50% of general and administrative staff. These layoffs are expected to occur over the next two quarters.
The restructuring is expected to cut operating costs by approximately 60% relative to the company’s 2025 operating cost of $111.1 million. TBPH anticipates realizing full annualized cost savings of approximately $70 million by the third quarter of 2026.
Combined with continued sales of Yupelri, these savings are projected to drive approximately $60-$70 million in annualized cash flow beginning in the third quarter of 2026.
GSK plc (GSK - Free Report) recorded global net sales of approximately $3.9 billion for Trelegy in 2025, triggering a $50 million milestone payment from Royalty Pharma, received in cash in February. Theravance expects an additional $100 million milestone payment if Trelegy sales reach $3.51 billion in 2026.
TBPH's 2026 Financial Guidance
The company expects around $400 million in cash by the first quarter of 2026, along with the milestone payments for Trelegy and Yupelri.
Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote
TBPH's Zacks Rank & Another Stock to Consider
Theravance currently carries a Zacks Rank #1 (Strong Buy).
Another top-ranked stock in the biotech sector is Catalyst Pharmaceuticals (CPRX - Free Report) , which currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have risen from $2.55 to $2.82. CPRX’s shares have lost 7.8% over the past year.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.