TBPH to Sell Remaining Trelegy Royalty Interest to GSK, Stock Rises

Theravance Biopharma TBPH announced that it has 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.

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

With the latest agreement with GSK, Theravance will be entitled to receive a one-time cash payment of $225 million. The company is also eligible to receive up to $150 million as a milestone payment from Royalty Pharma on Trelegy Ellipta net sales in 2025 and 2026.

Per management, the latest transaction marks the first outcome of the strategic review committee's ongoing and continuous efforts to maximize shareholder value.

Shares of Theravance were up 22% yesterday following the announcement of the news.

The stock has rallied 18.5% so far this year against the industry’s decline of 1.9%.

More on TBPH's Royalty Interest in Trelegy Ellipta

In February 2025, Theravance 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.

With the above mentioned latest agreement, Theravance is entitled to receive a similar milestone payment of $150 million from partner Royalty Pharma if Trelegy Ellipta’s global net sales total ~$3.41 billion in 2025 and ~$3.51 billion in 2026.

The latest transaction is not likely to affect Theravance’s financial guidance for 2025.

In 2022, Theravance sold its economic interest in sales-based royalty rights on worldwide net sales of GSK’s Trelegy Ellipta to Royalty Pharma while retaining some rights to certain future milestone payments.

The latest cash payment to TBPH, in addition to the expected milestone payments, is likely to make the total potential lifetime value of GSK’s Trelegy Ellipta $1.52 billion.

TBPH Focus on Yupelri Commercialization & Other Pipeline Update

Theravance generates revenues in the United States from its collaboration with Viatris VTRS related to the sales of Yupelri (revefenacin), a nebulized therapy for chronic obstructive pulmonary disease.

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 COPD.

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.

Theravance reported $15.4 million as collaboration revenues in relation to Yupelri sales from VTRS during the first quarter of 2025, up 6.2% year over year.

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's Zacks Rank & Stock to Consider

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

A top-ranked stock in the biotech sector is Immunocore Holdings IMCR, carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Immunocore’s loss per share have narrowed from $1.57 to 86 cents for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.80 to $1.34. Year to date, shares of IMCR have rallied 31.1%.

IMCR’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 76.18%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research