Theravance Biopharma: Strategic Milestones and Revenue Forecasts Justify Buy Rating

Douglas Tsao, an analyst from H.C. Wainwright, maintained the Buy rating on Theravance Biopharma (TBPH – Research Report). The associated price target is $15.00.

Douglas Tsao has given his Buy rating due to a combination of factors, primarily focusing on the financial prospects and strategic positioning of Theravance Biopharma. The company is set to benefit significantly from milestones related to Trelegy, which has achieved substantial sales targets, resulting in a $50 million milestone for 2024 and a potential $100 million for 2026. These milestones contribute significantly to Theravance’s enterprise value, representing over a third of it.
Additionally, the valuation of Theravance is supported by a price target of $15, based on a multiple of discounted future revenues. The company’s pipeline assets are adjusted for their probability of success, with commercial assets like Yupelri having a high probability of success. Despite potential risks in clinical development and commercial execution, the strategic milestones and revenue forecasts present a compelling case for the Buy rating.

Tsao covers the Healthcare sector, focusing on stocks such as Outlook Therapeutics, Protagonist Therapeutics, and Neumora Therapeutics, Inc.. According to TipRanks, Tsao has an average return of 10.0% and a 39.15% success rate on recommended stocks.