Theravance Biopharma ((TBPH)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Theravance Biopharma’s recent earnings call painted a picture of strong financial performance and strategic maneuvers, particularly with its key products YUPELRI and TRELEGY. The company showcased its momentum and financial strength, although some uncertainties linger regarding the YUPELRI launch in China and pending tax obligations.
Strong YUPELRI Performance
YUPELRI has been a standout performer, with net sales reaching approximately $66 million, marking a 22% increase year-over-year. This growth was driven by increased demand and favorable net pricing. Additionally, YUPELRI’s approval in China has triggered a $7.5 million milestone payment, underscoring its expanding global footprint.
Strategic Sale of TRELEGY Royalty Interest
Theravance Biopharma completed a strategic $225 million sale of its remaining royalty interest in TRELEGY to GSK. This move significantly strengthens the company’s balance sheet and enhances the likelihood of receiving the remaining $150 million in milestones over the next 18 months, thanks to TRELEGY’s strong performance.
Progress in Ampreloxetine Development
The Phase III CYPRESS trial for ampreloxetine is making significant progress, with enrollment expected to complete shortly. This development program aims to provide value to patients with multiple system atrophy (MSA) and neurogenic orthostatic hypotension (nOH), highlighting Theravance’s commitment to advancing its pipeline.
Financial Strength and Guidance
Theravance ended the quarter with approximately $340 million in cash and no debt, showcasing strong cash management. Non-GAAP losses improved to $4.2 million compared to $6.3 million in the prior year, excluding one-time items, reflecting the company’s robust financial health.
Limited Guidance on YUPELRI Launch in China
While YUPELRI has been approved in China, details on the launch timing and market plans remain limited. Viatris is finalizing the commercialization plan, leaving some uncertainty about the product’s future performance in this significant market.
Pending Tax Payment
Theravance expects to pay approximately $27 million in taxes related to the TRELEGY royalty sale in the second half of the year. This payment could impact cash flow, although it has been fully accrued in Q2, indicating prudent financial planning.
Forward-Looking Guidance
Looking ahead, Theravance Biopharma’s CEO Rick Winningham highlighted the company’s robust performance metrics. YUPELRI continues to be a durable cash-generating product, with strong sales growth and a milestone payment from its approval in China. The strategic sale of TRELEGY royalty interest to GSK has fortified the balance sheet, with potential milestones on the horizon. The ongoing Phase III CYPRESS trial for ampreloxetine is on track, with top-line data expected in about six months, pointing to continued progress in their development pipeline.
In summary, Theravance Biopharma’s earnings call reflects a company in a strong financial position, driven by strategic sales and product performance. While uncertainties remain, particularly concerning the YUPELRI launch in China and tax obligations, the overall sentiment is positive, with promising developments on the horizon.