Theravance's Q1 Loss Wider Than Expected, Revenues Rise Y/Y

Theravance Biopharma TBPH reported first-quarter 2025 adjusted net loss of 17 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 11 cents. In the year-ago quarter, the company had reported an adjusted loss of 9 cents per share.

The reported loss excludes share-based compensation expense, income tax benefit and non-cash interest expense. Including these items, the company incurred a loss of 27 cents per share in the first quarter compared with a loss of 24 cents in the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Total revenues in the first quarter came in at $15.4 million, also missing the Zacks Consensus Estimate of $16 million. Revenues, however, rose 6.2% year over year owing to increased collaboration revenues from partner Viatris VTRS.

Year to date, shares of Theravance have risen 5.2% against the industry’s decline of 3.1%.

TBPH's Q1 Results in Detail

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

Theravance and Viatris 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 $58.3 million in U.S. net sales of Yupelri in the first quarter, up 6% year over year.

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

In February 2025, TBPH earned a $50 million milestone payment from partner Royalty Pharma based on Trelegy Ellipta’s net sales of $3.46 billion in 2024, as reported by GSK.

TBPH is entitled to receive a similar milestone payment of $50 million from partner Royalty Pharma if Trelegy Ellipta’s global net sales total ~$3.41 billion in 2025. In 2022, Theravance sold its economic interest in sales-based royalty rights on worldwide net sales of GSK’s Trelegy to Royalty Pharma while retaining some rights to certain future milestone payments.

Research and development expenses (excluding share-based compensation) totaled $10.4 million, up almost 40.5% from the year-ago quarter’s level. Selling, general and administrative expenses (excluding share-based compensation) increased around 13.2% year over year to $14.6 million.

As of March 31, 2025, Theravance had cash, cash equivalents and marketable securities worth $130.9 million compared with $88.4 million as of Dec. 31, 2024.

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 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.

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

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

TBPH's Zacks Rank & Stock to Consider

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

A better-ranked stock in the biotech sector is ANI Pharmaceuticals, Inc. ANIP, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $6.30 to $6.36 for 2025. During the same time, earnings per share estimates for 2026 have increased from $6.85 to $7.14. Year to date, shares of ANIP have rallied 29.4%.

ANIP’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 17.32%.

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

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