Theravance's (TBPH) Q2 Earnings Beat, Pipeline On Track
Theravance Biopharma, Inc. TBPH incurred a loss of 80 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the year-ago loss of $1.00.
Total revenues of $12.9 million in the quarter missed the Zacks Consensus Estimate of $15.02 million. Revenues were down 14% year over year.
The top line comprised collaboration revenues worth $2 million from Janssen, a wholly owned subsidiary of Johnson & Johnson JNJ, and $10.9 million from the collaboration agreement with Viatris VTRS in relation to Yupelri (revefenacin).
Theravance and Viatris are jointly developing and commercializing Yupelri, a long-acting muscarinic antagonist, as a once-daily nebulized treatment of chronic obstructive pulmonary disease (“COPD”). Viatris and Theravance are sharing U.S. profits and losses related to commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance gets 35%.
Despite mixed results, shares of Theravance were up 2.1% in after-market trading on Aug 3. The company’s shares have declined 23.3% so far this year compared with the industry’s decrease of 11.1%.
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Quarter in Detail
Theravance holds an economic interest in royalties earned from GlaxoSmithKline GSK on the triple combination COPD treatment, Trelegy Ellipta’s global sales. In the second quarter, Glaxo recorded sales worth $405 million from Trelegy Ellipta. Theravance is eligible to receive 5.5-8.5% tiered royalties on the product's worldwide net sales.
Research & development expenses were $51.1 million, down 18.1% from the year-ago quarter.
Selling, general & administrative expenses were up 4.6% year over year to $25.9 million.
As of Jun 30, 2021, Theravance had cash, cash equivalents and marketable securities worth $265 million compared with $210 million as of Mar 31, 2021.
2021 Guidance Maintained
Theravance maintained its guidance for operating expenses in 2021. It expects R&D expense to be in the range of $195-$225 million and SG&A expense between $80 million and $90 million.
Updates on Pipeline
In June, Theravance announced that its inhaled JAK-inhibitor candidate, nezulcitinib, failed to meet primary endpoint of a mid-stage study evaluating it in hospitalized COVID-19 patients with lung injury. The company is currently evaluating the next steps for development of nezulcitinib.
This apart, Theravance is developing its JAK inhibitor, izencitinib, for the treatment of inflammatory intestinal diseases. A phase II study on izencitinib for treating Crohn's disease and a phase IIb study for ulcerative colitis are underway. Top-line data from the colitis study is expected to be announced in the third quarter of 2021 while Crohn's disease study data is expected in the fourth quarter of 2021 or the first quarter of 2022.
Also, the company is evaluating ampreloxetine in a phase III study for treating patients with symptomatic neurogenic orthostatic hypotension. Top-line result from the study is expected in the third quarter of 2021.
Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote
Zacks Rank
Theravance currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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