Theravance Biopharma(TBPH) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Theravance Biopharma reported quarterly net sales for YUPELRI of $62.2 million, reflecting a 7% year-over-year growth and a 14% quarter-over-quarter increase, marking a new launch high [5][11] - Collaboration revenue reached$ 16.9 million, an 8% increase compared to the previous year, with total operating expenses slightly better than expectations [33][34] - The company closed the period with $91 million in cash and 49 million shares outstanding [35] Business Line Data and Key Metrics Changes - YUPELRI's demand increased by 14% and hospital doses rose by 40% year-over-year, contributing to a nearly 19% market share in the hospital long-acting Neb market [5][17] - Trelegy sales increased by 17% to$ 789 million for the quarter, with year-to-date sales reaching $2.6 billion, up 30% [22] - Ampreloxetine is progressing well in the CYPRESS study, with patient enrollment on track to meet objectives [26][27] Market Data and Key Metrics Changes - The company is optimistic about YUPELRI's growth potential in the U.S. and has filed an NDA in China, with potential milestones and royalties outlined [20][21] - The strategic objective includes expanding YUPELRI's utilization in the U.S. and exploring opportunities in international markets [39] Company Strategy and Development Direction - The Board has formed a strategic review committee to explore alternatives for unlocking value from key assets, including YUPELRI and Ampreloxetine [9][10] - The company aims to maximize the number of patients benefiting from YUPELRI and is focused on disciplined investment to drive long-term shareholder value [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about YUPELRI's growth trajectory and the potential for achieving sales milestones with Trelegy [6][40] - The company is committed to returning excess capital to shareholders and managing expenses carefully to limit cash utilization [10][40] Other Important Information - The company incurred a$ 1.6 million non-cash impairment charge related to excess lab space [35] - Management highlighted the importance of therapeutic interchange protocols in driving market share for YUPELRI [49] Q&A Session Summary Question: Changes in YUPELRI prescribing patterns post ensifentrine launch - Management noted anecdotal feedback indicating that ensifentrine is being added on to YUPELRI, with a focus on concomitant use [44] Question: Status of site activations for the CYPRESS study - Management confirmed that the majority of key sites are now activated, progressing as planned [45] Question: Drivers of YUPELRI's growth and expectations moving forward - Growth is attributed to formulary approvals and therapeutic interchange, with expectations for continued market share gains [48] Question: Rationale behind the newly formed strategic review committee - The Board is evaluating the company's strategy against both short-term and long-term goals, aiming to unlock value from key assets [50][52] Question: Progress on ASP and expectations for 2025 - Management indicated that improvements in ASP are expected to manifest in early 2025, driven by strong demand growth [56][57]