Analyst Marc Frahm from TD Cowen maintained a Hold rating on Theravance Biopharma and increased the price target to $13.00 from $12.00.
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Marc Frahm has given his Hold rating due to a combination of factors impacting Theravance Biopharma. The company reported a rebound in Q2 Yupelri collaboration revenue, which exceeded expectations, largely due to a one-time pricing benefit that is not expected to continue in future quarters. While there is growth in patient demand, particularly in the high-margin hospital channel, the revenue increase outpaced sales growth due to temporary fluctuations in costs.
Additionally, Theravance’s financial outlook is bolstered by potential milestone payments from Trelegy, which is on track to meet sales targets through 2026. However, the company’s pipeline relies heavily on the success of ampreloxetine, which is still in the Phase 3 trial stage with data expected in 2026. This combination of current revenue growth, potential future earnings from milestones, and the uncertainty surrounding the pipeline asset contributes to the Hold rating.
Frahm covers the Healthcare sector, focusing on stocks such as Incyte, Agios Pharma, and Scholar Rock Holding. According to TipRanks, Frahm has an average return of 4.0% and a 41.36% success rate on recommended stocks.