Theravance Biopharma’s Strategic Moves and Growth Potential Justify Buy Rating

BTIG analyst Julian Harrison maintained a Buy rating on Theravance Biopharma (TBPH – Research Report) yesterday and set a price target of $24.00.

Julian Harrison has given his Buy rating due to a combination of factors that highlight Theravance Biopharma’s strategic decisions and growth potential. The company recently monetized its future royalty rights on Trelegy sales, securing a $225 million cash payment from GSK. This move is seen as a smart strategy to enhance shareholder value in the short term. Additionally, Theravance Biopharma is positioned to receive up to $150 million in commercial milestones from Trelegy sales, with sales targets for these milestones being lower than consensus estimates, making them more attainable.
Another key factor in Harrison’s rating is the potential growth from ampreloxetine, a promising treatment for neurogenic orthostatic hypotension (nOH). Current treatments for nOH have limitations, and there is a significant demand for better therapies. Market research indicates strong interest from cardiologists and neurologists in prescribing ampreloxetine, suggesting it could capture a significant market share if approved. This potential, combined with the company’s strategic financial moves, supports the Buy rating.

TBPH’s price has also changed moderately for the past six months – from $9.440 to $11.150, which is a 18.11% increase.