3 days ago
Theravance Biopharma Inc (TBPH) Q2 2025 Earnings Call Highlights: Strong Sales and Strategic ...
Release Date: August 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Theravance Biopharma Inc (NASDAQ:TBPH) reported a strong quarter with net sales reaching approximately $66 million, driven by demand growth and favorable pricing.
The company completed a $225 million sale of its remaining royalty interests in Trilogy to GSK, significantly strengthening its balance sheet.
The phase 3 Cypress trial for amproloxetine is progressing well, with enrollment nearing completion and top-line data expected in six months.
Theravance Biopharma Inc (NASDAQ:TBPH) ended the quarter with approximately $340 million in cash and no debt, maintaining a strong financial position.
The company is on track to achieve significant milestones, including a potential $150 million from royalty Pharma over the next 18 months.
Negative Points
The company did not provide guidance on the formal launch timing for Upellry in China, as Beatrice is still finalizing the commercialization plan.
There is uncertainty regarding the pricing strategy for amproloxetine, as it is still early to determine a specific price point.
The company faces challenges in ensuring proper education for clinicians to make the best decisions for patient needs, particularly in specialty pharmacy channels.
Theravance Biopharma Inc (NASDAQ:TBPH) expects to pay approximately $27 million in taxes related to the Trilogy royalty sale in the second half of the year.
There is potential for pushback on amproloxetine pricing and reimbursement, given the presence of generics with less efficacy and clear side effects.
Q & A Highlights
Warning! GuruFocus has detected 7 Warning Signs with TBPH.
Q: What factors contributed to the improved pull-through performance for Upellary this quarter? A: Rhonda Farnham, Chief Business Officer, explained that the improved pull-through was driven by the transition of volume to specialty pharmacy, which enhances pricing and persistency. The support patients receive in this channel improves fulfillment and persistency compared to conventional retail pharmacy. The company remains focused on providing options that best meet individual patient needs while educating clinicians to make informed decisions.
Q: Can you provide an update on the outlook for Upellary's growth in China and the Cyprus trial enrollment? A: Rhonda Farnham stated that Beatrice is leading the commercialization efforts in China, and further details will be shared once their market plan is unveiled. Anya Miller, Head of Development, noted that the Cyprus trial's US versus ex-US enrollment is expected to mirror previous studies, with all data to be disclosed at the topline readout. A press release will be issued upon full enrollment of the open-label portion.
Q: How is Theravance Biopharma approaching the pricing strategy for amproloxetine, and what are the considerations for reimbursement in the US? A: Rhonda Farnham mentioned that while it's early to finalize pricing, an analysis of recent rare neuro drug launches suggests an average price of approximately $380,000 per year. The company is actively engaging with payers to highlight the unmet need and the potential benefits of amproloxetine, focusing on its safety profile and durability of effect.
Q: What are the expectations for SG&A expenses related to amproloxetine's commercialization, and how might they change post-data readout? A: Aziz Sala, Chief Financial Officer, indicated that SG&A expenses are expected to remain stable through the year, with some pre-launch activities already underway. Post-data readout, if positive, there will be an increase in SG&A spend, but it will be targeted and not excessively large, focusing on supporting the launch and marketing efforts.
Q: Can you elaborate on the operating leverage observed in the collaboration revenue growth compared to Upellary's net sales increase? A: Aziz Sala explained that the collaboration revenue growth outpaced net sales growth due to cost reimbursements between the companies. While this quarter showed a significant gap, future quarters may not see the same level of disparity. However, profit margins are expected to continue improving as net sales grow.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
