Theravance Biopharma (TBPH) Q2 2024 earnings summary

Executive summary

• YUPELRI net sales were $54.5 million in Q2 2024, down 1% year-over-year, with hospital doses up 43% and customer demand up 13%; hospital market share surpassed 18% and community share reached 32%.

• Viatris filed an NDA for YUPELRI in China in June 2024, unlocking a potential $7.5 million milestone upon approval and possible royalties; a new method of use patent for YUPELRI was granted, expiring in 2039 and listed in the FDA Orange Book.

• TRELEGY global net sales reached $1.065 billion in Q2 2024, up 40% year-over-year, with year-to-date sales of $1.8 billion and up to $200 million in milestone payments possible from 2024–2026.

• CYPRESS Phase 3 study for ampreloxetine in MSA patients is ongoing, with last patient enrollment expected mid-2025 and top-line results anticipated about six months later.

• Cash, cash equivalents, and marketable securities totaled $96.1 million as of June 30, 2024, with no debt and a completed share buyback program.

Financial highlights

• Collaboration revenue was $14.3 million in Q2 2024, up 4% year-over-year.

• Net loss for Q2 2024 was $16.5 million; non-GAAP net loss from operations was $6.3 million, improved from $7.4 million in Q2 2023.

• R&D expenses were $10.0 million in Q2 2024, up from $9.4 million in Q2 2023; SG&A expenses were $17.1 million, down from $19.3 million.

• Non-cash impairment charge of $3.0 million recognized in Q2 2024 for excess/vacant lab space.

• Shares outstanding at quarter-end: approximately 49 million.

Outlook and guidance

• Full-year 2024 R&D expenses expected at $30–36 million and SG&A at $45–55 million, both excluding share-based compensation.

• Share-based compensation for 2024 expected at $18–22 million, down ~20% year-over-year.

• Non-GAAP losses and cash burn for 2024 expected to be similar to first half actuals, excluding potential milestone receipts.

• YUPELRI pricing headwinds in Q2 2024 expected to improve slightly in H2 2024; more stable pricing and demand growth anticipated in 2025 and beyond.

• TRELEGY milestone cash receipts, if achieved, expected in 1H 2025.