Theravance's Q2 Loss Narrower Than Expected, Revenues Rise Y/Y

Theravance Biopharma TBPH reported second-quarter 2025 adjusted net loss of 8 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 14 cents. In the year-ago quarter, the company had incurred an adjusted loss of 13 cents per share.

Total revenues in the second quarter came in at $26.2 million, beating the Zacks Consensus Estimate of $17 million. Revenues surged 83.2% year over year, owing to increased collaboration revenues from partner Viatris (VTRS) as well as licensing revenues.

Year to date, shares of Theravance have rallied 26.6% compared with the industry’s rise of 5.3%.

TBPH's Q2 Earnings in Detail

The top line comprised Viatris’ collaboration revenues in relation to Yupelri (revefenacin) sales and licensing revenues.

Theravance and VTRS have collaborated for the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease.

Viatris and Theravance share U.S. profits and losses received in connection with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris' collaboration revenues include Theravance’s 35% share of net sales of Yupelri, as well as its proportionate amount of the total shared costs incurred by the two companies.

VTRS recognizes product sales from Yupelri and also owns a stake in Theravance. Viatris recorded $66.3 million in U.S. net sales of Yupelri in the second quarter, up 22% year over year, driven by continued growth in demand.

Theravance’s revenues from the Viatris collaboration were $18.7 million in the second quarter, up 31% year over year.

During the quarter, Theravance received a milestone payment of $7.5 million (licensing revenue) from Viatris following the approval of Yupelri in China.

Research and development expenses (excluding share-based compensation) totaled $9.5 million, up almost 8% from the year-ago quarter’s level. Selling, general and administrative expenses (excluding share-based compensation) increased around 16.4% year over year to $12.8 million.

As of June 30, 2025, Theravance had cash, cash equivalents and marketable securities worth $338.8 million compared with $130.9 million as of March 31, 2025.

TBPH's 2025 Financial Guidance

Theravance reaffirmed its financial guidance for 2025.

The company continues to expect adjusted R&D expenses (excluding share-based compensation) in the $32-$38 million range in 2025. Adjusted SG&A expenses (excluding share-based compensation) are still projected between $50 million and $60 million.

Theravance continues to expect share-based compensation expenses of $18-$20 million in 2025.

TBPH expects both adjusted losses and cash burn in 2025 to be similar to 2024 levels.

TBPH's Pipeline & Other Updates

Theravance is developing an investigational candidate, ampreloxetine, a norepinephrine reuptake inhibitor for the treatment of symptomatic neurogenic orthostatic hypotension (nOH) in patients with multiple system atrophy (MSA), a progressive brain disorder.

The phase III CYPRESS study is evaluating ampreloxetine for nOH MSA. The CYPRESS study is expected to complete patient enrollment by late summer. Top-line data from the same is expected six months after enrollment is completed. TBPH plans to submit a new drug application (NDA) for ampreloxetine if the study data are found to be positive.

In June 2025, Theravance entered into an agreement to sell its remaining royalty interest in net sales of Trelegy Ellipta to GSK plc GSK for $225 million in cash.

Following this latest agreement with GSK, Theravance received a one-time cash payment of $225 million late in the second quarter of 2025.

Theravance held some royalty interest in GSK’s chronic obstructive pulmonary disease (COPD) medicine, Trelegy Ellipta.

Back then, management had stated that the latest transaction marked the first outcome of the strategic review committee's ongoing and continuous efforts to maximize shareholder value.

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote

TBPH's Zacks Rank & Stocks to Consider

Theravance currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are CorMedix CRMD and Kiniksa Pharmaceuticals KNSA, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for CorMedix’s earnings per share have increased from 93 cents to $1.22 for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.64 to $2.12. Year to date, shares of CRMD have rallied 41.9%.

CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.

In the past 60 days, estimates for Kiniksa Pharmaceuticals’ earnings per share have increased from 74 cents to $1.03 for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.19 to $1.60. Year to date, shares of KNSA have surged 65.7%.

Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, delivering a negative average surprise of 330.56%.

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This article originally published on Zacks Investment Research (zacks.com).

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