Theravance Biopharma ((TBPH)) has held its Q1 earnings call. Read on for the main highlights of the call.
Theravance Biopharma’s recent earnings call conveyed a strong and optimistic sentiment, highlighting robust financial and operational performance. The company reported significant growth in YUPELRI sales and progress in Trelegy milestones, despite facing challenges like increased operating expenses and pending litigation. Overall, Theravance’s strategic advancements and financial health position it well for future success.
Strong Performance and Growth of YUPELRI
YUPELRI showcased impressive results this quarter, with net sales increasing by 6% to over $58 million. The hospital doses saw a remarkable 48% year-on-year increase, marking the strongest quarter launch to date in the hospital setting. This growth underscores the product’s expanding market presence and demand.
Trelegy Sales and Milestone Progress
Trelegy, marketed by GSK, reported a 14% increase in global net sales, positioning Theravance to achieve a $50 million milestone by 2025. Consensus estimates for Trelegy’s 2025 and 2026 sales have risen by approximately $100 million since the last earnings call, reflecting strong market confidence in the product.
Financial Strength and Cash Position
Theravance ended the quarter with a robust cash position of $131 million and no debt, highlighting its strong financial footing. This financial strength provides the company with the flexibility to invest in strategic initiatives and weather potential challenges.
Advancement in Ampreloxetine Trials
The company reported significant progress in the Sypris Phase III trial for ampreloxetine, with patient enrollment expected to complete by late summer. Top-line data is anticipated approximately six months later, marking a critical milestone in the development of this promising treatment.
Potential Long-term Value from Trelegy Royalties
Theravance anticipates significant long-term value from Trelegy royalties, expected to return in 2029. The strong brand performance of Trelegy suggests substantial future revenue potential from these royalties.
Increased Operating Expenses
Operating expenses, excluding share-based compensation, rose to $25 million this quarter. This increase was driven by higher Cypress patient enrollment and additional NDA and regulatory activities, reflecting the company’s ongoing investment in its pipeline.
Pending Litigation for YUPELRI
Theravance has reached settlements with five of eight paragraph four filers concerning YUPELRI, with three litigations still outstanding. The resolution of these legal matters remains a priority for the company.
One-time Tax Payment Impacting Cash Burn
A one-time tax payment related to the $50 million Trelegy milestone will temporarily increase cash burn in Q2. However, this is expected to be a short-term impact, with cash burn anticipated to improve later in the year.
Guidance and Future Outlook
Theravance provided optimistic guidance for the future, with YUPELRI’s net sales expected to continue growing, driven by demand and favorable pricing. The company is advancing the Sypris trial, with final patient enrollment expected by late summer and top-line data six months later. Additionally, milestones related to YUPELRI and Trelegy sales are on the horizon, with expectations for a $25 million milestone if YUPELRI sales reach $250 million and a $7.5 million milestone for approval in China. The company also anticipates a decline in R&D costs and improved cash burn, excluding the one-time tax payment.
In summary, Theravance Biopharma’s earnings call highlighted a positive outlook, with strong growth in key products and a solid financial position. Despite some challenges, the company’s strategic advancements and future milestones position it well for continued success. Investors can look forward to potential long-term value from Trelegy royalties and ongoing progress in the company’s pipeline.