Theravance Biopharma (TBPH) Q2 2026 earnings summary

Executive summary

• Entered into a definitive merger agreement to be acquired by Zymeworks Inc. for $17.00 per share in cash plus a contingent value right (CVR) tied to future ampreloxetine monetization, with closing expected in H2 2026 pending shareholder and regulatory approvals.

• Announced wind-down of the ampreloxetine CYPRESS Phase 3 program after not meeting its primary endpoint; restructuring initiated to focus on YUPELRI and reduce costs.

• Strategic Review Committee accelerated review of alternatives, culminating in the Zymeworks acquisition agreement.

• Continued strong performance of YUPELRI®, with collaboration revenue up 11% year-over-year and U.S. net sales up 7% year-over-year, driven by increased demand and hospital channel growth.

• Significant progress on organizational restructuring, resulting in a 35% reduction in operating expenses year-over-year (excluding restructuring and transaction costs).

Financial highlights

• Q2 2026 revenue was $20.7M, up 11% year-over-year, entirely from Viatris collaboration; six-month revenue was $38.4M, up 13%.

• Net loss for Q2 2026 was $5.9M; six-month net loss was $10.8M, compared to net income of $54.8M and $41.3M in the prior year, which included a $75.1M gain from the sale of TRELEGY royalties.

• Non-GAAP net income from operations was $9.5M in Q2 2026, versus a non-GAAP net loss of $4.2M in Q2 2025.

• Operating expenses decreased significantly due to restructuring: R&D down 55% and SG&A down 23% year-over-year for Q2.

• Cash, cash equivalents, and marketable securities totaled $387.7M as of June 30, 2026; no long-term debt.

Outlook and guidance

• Restructuring expected to reduce operating expenses by ~60% versus 2025, with full run-rate savings realized in H2 2026.

• Full run-rate cost savings from restructuring (~$70M) expected to materialize in H2 2026, resulting in $60–$70M of annualized cash flow (excluding restructuring and transaction costs).

• High confidence in achieving the $100M 2026 milestone payment from Royalty Pharma, contingent on TRELEGY global net sales.

• Cash resources expected to fund operations for at least the next twelve months.

• Merger with Zymeworks anticipated to close in H2 2026, subject to customary conditions.