Theravance (TBPH) Q2 Loss Wider Than Expected, Revenues Rise Y/Y

Core Viewpoint - Theravance Biopharma reported a wider adjusted net loss in Q2 2024 compared to estimates, with total revenues missing expectations despite a year-over-year increase due to collaboration revenues from Viatris [1][2]. Financial Performance - The adjusted net loss for Q2 2024 was 13 cents per share, exceeding the Zacks Consensus Estimate of a loss of 9 cents per share, and matching the loss reported in the same quarter last year [1] - Total revenues were $14.3 million, falling short of the Zacks Consensus Estimate of $16 million, but representing a 4.4% increase year-over-year [2] - The reported loss, including share-based compensation and other expenses, was 34 cents per share [2] Collaboration and Revenue Breakdown - Revenues were entirely derived from collaboration with Viatris related to Yupelri (revefenacin) sales, with Theravance receiving 35% of the profits from this collaboration [3][4] - Viatris recognizes product sales from Yupelri and also holds a stake in Theravance [4] Expense Analysis - Research and development expenses (excluding share-based compensation) totaled $8.8 million, an increase of 17.3% from the previous year [6] - Selling, general and administrative expenses (excluding share-based compensation) decreased by 13.4% year-over-year to $12.9 million [6] Cash Position and Guidance - As of June 30, 2024, Theravance had cash, cash equivalents, and marketable securities amounting to $96.1 million, down from $100 million as of March 31, 2024 [7] - The company expects adjusted R&D expenses to be in the range of $30-$36 million and adjusted SG&A expenses between $45 million and $55 million for 2024 [7] - Theravance anticipates that adjusted losses and cash burn for the remainder of 2024 will match the first half of the year, contrary to earlier expectations of breakeven in the second half [8] Pipeline Developments - Theravance is developing ampreloxetine (TD-9855) for neurogenic orthostatic hypotension (nOH) in patients with multiple system atrophy (MSA), which has received Orphan Drug designation from the FDA [9] - The phase III CYPRESS study for ampreloxetine began in Q1 2024, with patient enrollment expected to complete by mid-2025, and top-line data anticipated six months post-enrollment [10]