Theravance Biopharma ((TBPH)) has held its Q4 earnings call. Read on for the main highlights of the call.
Theravance Biopharma’s recent earnings call revealed a positive sentiment, highlighting a strong fourth quarter in 2024. The company achieved record sales in YUPELRI and received significant milestone payments from TRELEGY. Despite some concerns about potential seasonal sales declines and increased operating expenses, the overall achievements and growth trajectory were emphasized as outweighing these concerns.
Record YUPELRI Net Sales
The fourth quarter of 2024 marked a significant milestone for Theravance Biopharma, with YUPELRI net sales increasing by 10% over the same period in 2023, reaching an all-time high of $66.7 million. This growth was driven by a remarkable 49% year-over-year increase in hospital doses, underscoring the product’s expanding market presence.
TRELEGY Sales and Milestone Achievement
Theravance Biopharma benefited from GSK’s impressive full-year TRELEGY sales of $3.5 billion, which represented a 26% increase year-over-year. This achievement triggered a $50 million milestone payment to Theravance, highlighting the company’s strategic partnerships and revenue-generating potential.
Ampreloxetine Development Progress
The company reported solid progress in the development of ampreloxetine, with strong enrollment in the CYPRESS study and positive interactions with the FDA. These developments bolster expectations for an expedited New Drug Application (NDA) filing, contingent on positive study results.
Financial Position Strength
Theravance concluded 2024 with a robust financial position, holding $88 million in cash and no debt, excluding a recent $50 million milestone receipt. This financial strength positions the company well for future growth and investment in key projects.
Potential Seasonal Decline in YUPELRI Sales
Management noted the possibility of typical seasonal declines in YUPELRI sales as the transition from the fourth quarter to the first quarter occurs. This potential dip is a common trend in the industry and is being closely monitored by the company.
Increased Operating Expenses
Operating expenses, excluding share-based compensation, rose to $22 million. This increase was attributed to incremental commercial and medical affairs spending related to the prelaunch activities of ampreloxetine, reflecting the company’s commitment to advancing its pipeline.
Forward-Looking Guidance
Looking ahead, Theravance Biopharma provided guidance for continued growth and strategic milestones. The company anticipates a $25 million U.S. sales milestone for YUPELRI and potential income from China pending approval. For TRELEGY, an additional $150 million milestone is possible within the next 24 months. The completion of the CYPRESS study enrollment is expected by mid-2025, with plans for a priority review NDA filing. Financial guidance for 2025 includes R&D expenses of $32-38 million and SG&A expenses of $50-60 million, with anticipated non-GAAP losses similar to 2024 levels.
In summary, Theravance Biopharma’s earnings call reflected a positive outlook with record achievements and strategic advancements. The company’s strong financial position and forward-looking guidance indicate a promising trajectory, despite some anticipated seasonal and operational challenges. Investors and stakeholders can remain optimistic about Theravance’s continued growth and development in the biopharmaceutical sector.