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Theravance Bio (TBPH) Down 2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Theravance Bio due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Theravance's Q4 Loss Wider Than Expected, Revenues Miss
Theravance Biopharma reported fourth-quarter 2022 net loss of 21 cents per share, narrower than the year-ago quarter’s loss of 43 cents. The reported loss was wider than the Zacks Consensus Estimate of a loss of 20 cents per share and on par with our model estimates of a loss of 21 cents.
Total revenues of $14.6 million missed the Zacks Consensus Estimate of $18.3 million and our model estimates of $26.3 million.
Quarter in Detail
The top line almost fully comprised of Viatris’ collaboration revenues worth $14.6 million in relation to Yupelri (revefenacin).
Research & development expenses were $15.3 million, down 51% from the year-ago quarter’s tally. This was driven primarily by start-up costs for the ampreloxetine phase III study.
Selling, general & administrative expenses declined 22% year over year to $16.7 million. As of Dec 31, 2022, Theravance had cash, cash equivalents and marketable securities worth $327.5 million compared with $486.8 million as of Sep 30, 2022.
2023 Guidance
Theravance expects adjusted research & development expenses (excluding one-time restructuring expenses, legal expenses and share-based compensation) in the $35-$45 million range. Adjusted selling, general and administrative expenses are projected between $45 million and $55 million.
R&D costs are expected to be relatively higher in the first quarter of 2023 and to a lesser extent in the second quarter, before declining significantly by the second half of the year.
Stock-based compensation costs are expected to be materially lower in 2023 than 2022.
TBPH expects to generate adjusted profit by the second half of 2023.
Capital Return Program
In September, Theravance initiated a $250 million capital return program. This included purchasing GSK ‘s entire equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per unit.
TBPH has authorized a $75 million increase to the existing $250 million capital return program, bringing the total value to $325 million. The company has repurchased stock worth $155 million, including $17 million in 2023. The remaining $170 million is expected to be completed by the end of 2023.
Other Updates
Theravance had a worldwide deal with Takeda to develop and commercialize TD-8954 (TAK-954). TD-8954 was being evaluated for a phase II study for treating post-operative gastrointestinal dysfunction. The phase II study did not meet its endpoint, and it was mutually agreed with Takeda to discontinue further development of this program and the collaboration deal in February 2023. Takeda was responsible for the worldwide development and commercialization of the drug.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted 6.9% due to these changes.
VGM Scores
At this time, Theravance Bio has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Theravance Bio (TBPH) Down 2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Theravance Bio due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Theravance's Q4 Loss Wider Than Expected, Revenues Miss
Theravance Biopharma reported fourth-quarter 2022 net loss of 21 cents per share, narrower than the year-ago quarter’s loss of 43 cents. The reported loss was wider than the Zacks Consensus Estimate of a loss of 20 cents per share and on par with our model estimates of a loss of 21 cents.
Total revenues of $14.6 million missed the Zacks Consensus Estimate of $18.3 million and our model estimates of $26.3 million.
Quarter in Detail
The top line almost fully comprised of Viatris’ collaboration revenues worth $14.6 million in relation to Yupelri (revefenacin).
Research & development expenses were $15.3 million, down 51% from the year-ago quarter’s tally. This was driven primarily by start-up costs for the ampreloxetine phase III study.
Selling, general & administrative expenses declined 22% year over year to $16.7 million. As of Dec 31, 2022, Theravance had cash, cash equivalents and marketable securities worth $327.5 million compared with $486.8 million as of Sep 30, 2022.
2023 Guidance
Theravance expects adjusted research & development expenses (excluding one-time restructuring expenses, legal expenses and share-based compensation) in the $35-$45 million range. Adjusted selling, general and administrative expenses are projected between $45 million and $55 million.
R&D costs are expected to be relatively higher in the first quarter of 2023 and to a lesser extent in the second quarter, before declining significantly by the second half of the year.
Stock-based compensation costs are expected to be materially lower in 2023 than 2022.
TBPH expects to generate adjusted profit by the second half of 2023.
Capital Return Program
In September, Theravance initiated a $250 million capital return program. This included purchasing GSK ‘s entire equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per unit.
TBPH has authorized a $75 million increase to the existing $250 million capital return program, bringing the total value to $325 million. The company has repurchased stock worth $155 million, including $17 million in 2023. The remaining $170 million is expected to be completed by the end of 2023.
Other Updates
Theravance had a worldwide deal with Takeda to develop and commercialize TD-8954 (TAK-954). TD-8954 was being evaluated for a phase II study for treating post-operative gastrointestinal dysfunction. The phase II study did not meet its endpoint, and it was mutually agreed with Takeda to discontinue further development of this program and the collaboration deal in February 2023. Takeda was responsible for the worldwide development and commercialization of the drug.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted 6.9% due to these changes.
VGM Scores
At this time, Theravance Bio has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.