Theravance Biopharma TBPH reported second-quarter 2026 adjusted earnings of 19 cents per share, matching the Zacks Consensus Estimate. In the year-ago quarter, the company had incurred an adjusted loss of 8 cents per share.
Total revenues in the quarter were $20.7 million, marginally beating the Zacks Consensus Estimate of $20 million. In the absence of any licensing and milestone revenues, total revenues declined nearly 21% year over year.
Year to date, shares of Theravance have lost 9.6% compared with the industry’s 1.2% decline.
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TBPH’s Q2 Earnings in Detail
Theravance’s top line consisted solely of collaboration revenues from partner Viatris VTRS tied to Yupelri (revefenacin) sales in the United States and rose 11% year over year, driven by continued net sales growth of Yupelri and improved operating leverage.
Theravance and VTRS have collaborated on the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease.
Viatris and Theravance share U.S. profits and losses associated with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris' collaboration revenues include Theravance’s 35% share of Yupelri net sales, as well as its proportionate amount of the total shared costs incurred by the two companies.
Research and development expenses (excluding share-based compensation) totaled $4.2 million, down 56.4% from the year-ago quarter’s level, driven by cost savings from the restructuring announced in March and the ongoing wind-down of the CYPRESS study on its lead candidate, ampreloxetine.
Selling, general and administrative expenses (excluding share-based compensation) declined 28.7% year over year to $10.6 million due to cost-cutting initiatives from the restructuring announced in March.
As of June 30, 2026, Theravance had cash, cash equivalents and marketable securities worth $387.7 million compared with $394.7 million as of March 31, 2026.
TBPH Set to Be Acquired After Lead Program Discontinuation
In late June, Theravance entered into an agreement with Zymeworks Inc. ZYME under which the latter will acquire TBPH in an all-cash transaction valued at approximately $929 million. The acquisition is expected to close in the second half of this year.
The deal followed a strategic review initiated after Theravance's growth outlook deteriorated significantly. The company’s long-term growth strategy was centered on its lead candidate, ampreloxetine, a norepinephrine reuptake inhibitor being developed for symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy. However, in early March, the pivotal phase III CYPRESS study failed to meet its primary and secondary endpoints.
Consequently, TBPH discontinued the ampreloxetine program. Following the setback, the company launched a broad strategic review, explored value-maximizing alternatives, including a potential sale and implemented a major organizational restructuring to reduce costs.
Per management, the Zymeworks acquisition is the most value-maximizing option for Theravance shareholders after evaluating all available strategic alternatives.
TBPH’s Organizational Restructuring & Cost Optimization
Theravance is currently undergoing a major organizational restructuring aimed at optimizing its cost structure and sharpening its focus on its commercial product, Yupelri.
The restructuring is expected to cut operating costs by approximately 60% relative to the company’s 2025 operating costs of $111.1 million. Combined with continued sales of Yupelri, these savings are projected to drive approximately $60-$70 million in annualized cash flow beginning in the second half of 2026.
Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote
TBPH's Zacks Rank
Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Theravance currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote
Theravance Biopharma, Inc. Price, Consensus and EPS Surprise
Theravance Biopharma, Inc. price-consensus-eps-surprise-chart | Theravance Biopharma, Inc. Quote
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This article originally published on Zacks Investment Research (zacks.com).