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Theravance Stock Declines Around 17% in Three Months: Here's Why
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Key Takeaways
Theravance stock dropped after ampreloxetine failed a phase III study, missing its primary endpoint.
TBPH is scrapping the drug and exploring options, including a potential sale, after a weakening pipeline.
Theravance plans major layoffs and relies on collaboration revenues.
Shares of Theravance Biopharma (TBPH - Free Report) have plunged nearly 17% over the past three months against the industry’s growth of 2.2%. The steep decline follows a major setback involving its lead pipeline candidate, ampreloxetine, a once-daily norepinephrine reuptake inhibitor.
Failure of Phase III CYPRESS Study Weighs on TBPH
In March 2026, Theravance announced top-line data from the pivotal phase III CYPRESS study, which evaluated ampreloxetine for the treatment of symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy, a progressive neurological 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 entirely. This significantly weakened its pipeline outlook and reduced long-term revenue potential.
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.
Besides the strategic review, the company announced a major organizational restructuring aimed at optimizing its cost structure. 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. Such moves signal uncertainty about the company’s future.
Year to date, shares of Theravance have lost 11.1% against the industry’s 2.2% growth.
Image Source: Zacks Investment Research
Dependence on Collaboration Revenues
Theravance’s top line currently comprises only collaboration revenues along with licensing and milestone revenues tied to Viatris’ (VTRS - Free Report) 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.
However, the absence of a wholly owned commercial product leaves Theravance heavily reliant on such partnerships. With the failure of ampreloxetine, future milestone opportunities may also be at risk, further dampening investors’ confidence in the company’s near-term prospects.
Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have risen from $2.55 to $2.87. Over the same period, EPS estimates for 2027 have surged from $2.85 to $3.25. CPRX shares have gained 10.8% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have risen from $2.89 to $3.08. Over the same period, EPS estimates for 2027 have surged from $3.22 to $3.41. INDV shares have lost 9.4% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 74.53%.
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Theravance Stock Declines Around 17% in Three Months: Here's Why
Key Takeaways
Shares of Theravance Biopharma (TBPH - Free Report) have plunged nearly 17% over the past three months against the industry’s growth of 2.2%. The steep decline follows a major setback involving its lead pipeline candidate, ampreloxetine, a once-daily norepinephrine reuptake inhibitor.
Failure of Phase III CYPRESS Study Weighs on TBPH
In March 2026, Theravance announced top-line data from the pivotal phase III CYPRESS study, which evaluated ampreloxetine for the treatment of symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy, a progressive neurological 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 entirely. This significantly weakened its pipeline outlook and reduced long-term revenue potential.
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.
Besides the strategic review, the company announced a major organizational restructuring aimed at optimizing its cost structure. 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. Such moves signal uncertainty about the company’s future.
Year to date, shares of Theravance have lost 11.1% against the industry’s 2.2% growth.
Image Source: Zacks Investment Research
Dependence on Collaboration Revenues
Theravance’s top line currently comprises only collaboration revenues along with licensing and milestone revenues tied to Viatris’ (VTRS - Free Report) 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.
However, the absence of a wholly owned commercial product leaves Theravance heavily reliant on such partnerships. With the failure of ampreloxetine, future milestone opportunities may also be at risk, further dampening investors’ confidence in the company’s near-term prospects.
Theravance Biopharma, Inc. Price and Consensus
Theravance Biopharma, Inc. price-consensus-chart | Theravance Biopharma, Inc. Quote
TBPH's Zacks Rank & Other Stocks to Consider
Theravance currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the biotech sector are Catalyst Pharmaceuticals (CPRX - Free Report) and Indivior Pharmaceuticals (INDV - Free Report) , each currently sporting 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 $2.87. Over the same period, EPS estimates for 2027 have surged from $2.85 to $3.25. CPRX shares have gained 10.8% year to date.
Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have risen from $2.89 to $3.08. Over the same period, EPS estimates for 2027 have surged from $3.22 to $3.41. INDV shares have lost 9.4% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 74.53%.