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Theravance's (TBPH) Q4 Earnings & Revenues Surpass Estimates

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Theravance Biopharma, Inc. (TBPH - Free Report) reported fourth-quarter 2023 adjusted net income of 3 cents per share against the Zacks Consensus Estimate of a loss of 4 cents per share.

The reported income excludes share-based compensation expense and non-cash interest expense and income tax expenses. In the year-ago quarter, the company had reported a loss of 10 cents per share.

The bottom line improved owing to higher collaboration revenues from partner Viatris (VTRS - Free Report) .

Total revenues came in at $17.6 million, which marginally beat the Zacks Consensus Estimate of $17.5 million. The top line was up almost 19.9% year over year.

Quarter in Detail

The top line almost fully comprised Viatris’ collaboration revenues in relation to Yupelri (revefenacin) sales.

Theravance and Viatris have collaborated for the development and commercialization of Yupelri.

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.

VTRS recognizes product sales from Yupelri and also owns a stake in Theravance.

Research and development (R&D) expenses (excluding share-based compensation) totaled $6.6 million, down almost 47.2% from the year-ago quarter’s level. Selling, general and administrative (SG&A) expenses (excluding share-based compensation) declined 9.5% year over year to $11.4 million.

As of Dec 31, 2023, Theravance had cash, cash equivalents and marketable securities worth $102.4 million compared with $134 million as of Sep 30, 2023.

Theravance repurchased $0.4 million shares to complete its capital return program of $325 million in early January 2024.

Shares of Theravance were up almost 2.8% on Feb 26, following the better-than-expected results. The stock has plunged 14.5% in the past year compared with the industry’s decline of 1.3%.

Zacks Investment Research
Image Source: Zacks Investment Research

Full-Year Results

In 2023, Theravance generated revenues of $57.4 million, which increased 11.8% year over year.

In the same period, the company recorded an adjusted loss of 39 cents per share compared with a loss of 71 cents in 2022.

2024 Guidance

Theravance expects adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.

TBPH expects to incur adjusted loss during the first half of 2024 and achieve breakeven in the second half of 2024, depending on the continued net sales growth for Yupelri.

Pipeline Updates

Theravance is developing an investigational candidate, ampreloxetine (TD-9855), a norepinephrine reuptake inhibitor for the treatment of neurogenic orthostatic hypotension in patients with multiple system atrophy. The FDA has granted Orphan Drug designation to ampreloxetine for the given indication.

The company initiated the phase III CYPRESS study evaluating ampreloxetine in the given patient population during the first quarter of 2024. The CYPRESS study is expected to complete patient enrollment by the second half of 2024.

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

Theravance Biopharma, Inc. Price, Consensus and EPS Surprise

Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the healthcare sector are Vanda Pharmaceuticals Inc. (VNDA - Free Report) and Puma Biotechnology, Inc. (PBYI - Free Report) , each sporting 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, the Zacks Consensus Estimate for Vanda Pharmaceuticals’ 2024 bottom line has improved from a loss of 46 cents per share to earnings of 1 cent. In the past year, shares of VNDA have plunged 30.2%.

Vanda Pharmaceuticals’ earnings beat estimates in each of the trailing three quarters. VNDA delivered an average earnings surprise of 92.88%.

In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share have improved from 64 cents to 71 cents. In the past year, shares of PBYI have risen 64.9%.

Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on the remaining occasion. PBYI delivered a four-quarter average earnings surprise of 76.55%.


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