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Sep 30, 2022
Theravance Q3 2022 Earnings Report
Reported third quarter financial results and provided a business update.
Key Takeaways
Theravance Biopharma reported its Q3 2022 financial results, highlighting the completion of the sale of its TRELEGY royalty interest to Royalty Pharma for over $1.5 billion in potential total value. The company is now debt-free and focused on value creation.
Closed the sale of its 85% economic interest in the sales-based royalty rights on worldwide net sales of GSK's TRELEGY ELLIPTA to Royalty Pharma for over $1.5 billion in potential total value.
Received upfront cash payment of approximately $1.1 billion from Royalty Pharma.
Global net sales of TRELEGY ELLIPTA reached $552 million in Q3 2022, up 23% from Q3 2021.
The Company purchased all of GSK's equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per share on September 20, 2022.
Theravance
Theravance
Theravance Revenue by Segment
Revenue by Segment
YUPELRI Collaboration Revenue
CapyFin.com Forward Guidance
The company is focused on advancing its pipeline and expects the $25 million investment from Royalty Pharma to fund the majority of the Phase 3 costs.
Positive Outlook
- Company reiterates it expects the $25 million investment from Royalty Pharma to fund the majority of the Phase 3 costs
- Company held a Type C meeting with the FDA in June 2022 and agreed on a path to NDA filing with one new Phase 3 clinical study in MSA patients with symptomatic nOH which is planned to start in the first quarter of 2023.
- The registrational Phase 3 Study in MSA patients with nOH (Study 0197, CYPRESS) is expected to be a 12-week open-label
- Company is entitled to a milestone payment from Royalty Pharma of $50 million if TRELEGY global net sales are equal to or exceed $2.9 billion in 2023
- Company plans to enter into an Open Market Share Repurchase Plan to facilitate the repurchase of approximately $60 million of its ordinary shares in open market purchases subsequent to the completion of the Offer, with a goal to complete this program by the end of 2023.
Challenges Ahead
- Delays or difficulties in commencing, enrolling or completing clinical studies
- The potential that results from clinical or non-clinical studies indicate the Company's product candidates or product are unsafe, ineffective or not differentiated
- Risks of decisions from regulatory authorities that are unfavorable to the Company
- Dependence on third parties to conduct clinical studies
- Risks of collaborating with or relying on third parties to discover, develop, manufacture and commercialize products