H.C. Wainwright has maintained a Buy rating on shares of Theravance Biopharma (NASDAQ: NASDAQ:TBPH), with a price target of $15.00.
The firm's endorsement follows a recent fireside chat with Theravance Biopharma's CEO, Rick Winningham, and subsequent discussions with the company's management at a global conference.
Theravance Biopharma's product Yupelri, the only once-daily nebulized medication approved for COPD in the United States, has shown continued growth since its Q1 2019 launch.
This is in partnership with Viatris. Despite a setback in Q2 where Yupelri did not meet sales expectations due to an unfavorable channel mix that led to a reduced average selling price (ASP), management remains optimistic. They attribute the shortfall to channel mix issues but emphasize that key performance indicators (KPIs) are moving in the right direction.
The company has achieved significant formulary wins, now totaling 737, with over 2,000 hospitals placing orders for Yupelri. Management highlighted the strategic importance of securing accounts with therapeutic interchange.
This process, while lengthy, is seen as highly valuable. Once Yupelri is incorporated into a hospital's electronic medical record system, it becomes the automatic choice when a long-acting muscarinic antagonist (LAMA) is prescribed, reducing the need for additional promotion by Theravance.
In other recent news, Theravance Biopharma reported a slight decrease in net sales for its product YUPELRI in the second quarter, reaching $54.5 million. This 1% dip from the previous year was attributed to a lower net price realized due to changes in the brand's channel mix.
Despite this, Theravance Biopharma anticipates price improvements in the upcoming quarters and remains optimistic about YUPELRI's long-term growth potential in the US market for COPD maintenance treatment.
In addition, the company's Ampreloxetine program has experienced delays, with the last patient enrollment for the CYPRESS study now expected in mid-2025. This setback is due to extended lead times for site activations at major US centers.
TD Cowen has revised its outlook on Theravance Biopharma, lowering the price target to $9 from the previous $10, while maintaining a Hold rating on the stock. This follows the company's financial results, which included $55 million in sales from Yupelri, collaboration revenue of $14 million, a net loss of $17 million, and cash reserves of $96 million.
InvestingPro Insights
As Theravance Biopharma (NASDAQ:TBPH) continues to navigate the commercial landscape for its COPD treatment, Yupelri, insights from InvestingPro reveal some key financial metrics and strategic moves by the company's management. With a market capitalization of approximately $398.23 million and a revenue growth of 20.97% in the last twelve months as of Q2 2024, the company shows a promising increase in sales figures. Despite the non-profitability in the last twelve months, reflected in a negative P/E ratio of -8.84, Theravance Biopharma's strategic initiatives, such as aggressive share buybacks and maintaining a higher cash reserve than debt, suggest a proactive approach to creating shareholder value.
InvestingPro Tips highlight that the company does not pay dividends, which aligns with its focus on reinvesting capital into the business to drive growth. Additionally, with analysts revising earnings downwards for the upcoming period and not anticipating profitability for the year, the company's management seems to be banking on long-term strategies, such as securing formulary wins and improving the ASP of Yupelri, to turn the tide. It's worth noting that the company holds more liquid assets than short-term obligations, providing some financial flexibility in its operations.
For investors considering a position in Theravance Biopharma, these financial insights, alongside the strategic commentary from management, may offer a more comprehensive view of the company's potential. For a deeper dive into Theravance Biopharma's financial health and future prospects, additional InvestingPro Tips are available, providing valuable guidance for informed investment decisions.
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