Theravance Bio (TBPH) Up 9.8% Since Last Earnings Report: Can It Continue?

Company Overview - Theravance Biopharma's shares have increased by approximately 9.8% since the last earnings report, outperforming the S&P 500 [1] - The company reported a narrower than expected adjusted net loss of 8 cents per share for Q2 2025, compared to the Zacks Consensus Estimate of a loss of 14 cents [3] - Total revenues for Q2 2025 reached $26.2 million, significantly exceeding the Zacks Consensus Estimate of $17 million, and representing an 83.2% year-over-year increase [4] Revenue Breakdown - The revenue growth was driven by increased collaboration revenues from partner Viatris and licensing revenues [4] - Collaboration revenues from Viatris related to Yupelri sales amounted to $18.7 million, reflecting a 31% year-over-year increase [5] - Theravance received a milestone payment of $7.5 million from Viatris following the approval of Yupelri in China [5] Expense Analysis - Research and development expenses (excluding share-based compensation) totaled $9.5 million, an increase of nearly 8% from the previous year [6] - Selling, general and administrative expenses (excluding share-based compensation) rose approximately 16.4% year-over-year to $12.8 million [6] - As of June 30, 2025, the company had cash, cash equivalents, and marketable securities worth $338.8 million, up from $130.9 million as of March 31, 2025 [6] Financial Guidance - Theravance reaffirmed its financial guidance for 2025, expecting adjusted R&D expenses in the range of $32-$38 million and adjusted SG&A expenses between $50 million and $60 million [7] - The company anticipates share-based compensation expenses of $18-$20 million in 2025 and expects adjusted losses and cash burn to be similar to 2024 levels [7] Market Sentiment - There has been a positive trend in fresh estimates, with the consensus estimate shifting by 36.84% recently [8] - Theravance holds a Growth Score of A but has a lower Momentum Score of C, with an overall VGM Score of A [10] - The stock has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [11] Industry Comparison - Theravance operates within the Zacks Medical - Drugs industry, where another player, United Therapeutics, has seen a 28% gain over the past month [12] - United Therapeutics reported revenues of $798.6 million for the last quarter, reflecting an 11.7% year-over-year increase, with an EPS of $6.41 compared to $5.85 a year ago [12]