• Quarterly Net Sales: $62.2 million, a 7% year-over-year growth and 14% quarter-on-quarter increase.
• Trilogy Sales: $789 million for the quarter, a 17% increase.
• Collaboration Revenue: $16.9 million, an 8% increase compared to last year.
• Hospital Doses: 227,000 doses shipped, a 40% increase compared to Q3 2023.
• Cash Position: $91 million at the end of the period.
• Operating Expenses: G&A expenses decreased by 7% in the quarter and 21% year-to-date.
• Share-Based Compensation: $5 million for the quarter, a 21% reduction compared to last year.
• Non-Cash Impairment Charge: $1.6 million due to the write-down of operating lease assets.
• Shares Outstanding: 49 million shares.

• Warning! GuruFocus has detected 3 Warning Signs with TBPH.

Release Date: November 12, 2024

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 7% year-over-year growth in net sales, reaching an all-time high of $62.2 million.
• The company made solid progress on its pivotal Cypress study for Ampel Oxetin, remaining on target to achieve updated timelines.
• GSK delivered strong Trilogy sales, reaching $789 million for the quarter, positioning Theravance Biopharma Inc (NASDAQ:TBPH) to achieve a $50 million sales milestone.
• The board of directors has separated the roles of CEO and Chair, with Susanna Gray elected as Chair, enhancing governance practices.
• Theravance Biopharma Inc (NASDAQ:TBPH) formed a strategic review committee to explore alternatives to unlock value, aligning with shareholder interests.

Negative Points

• The company faces pricing headwinds due to channel mix and one-time charges impacting quarterly pricing.
• There is a lag in the impact of pricing initiatives, with improvements expected to be seen in early 2025.
• Theravance Biopharma Inc (NASDAQ:TBPH) incurred a $1.6 million non-cash impairment charge due to the write-down of operating lease assets.
• The company expects higher non-cash tax charges in Q4 due to better-than-expected results and other non-cash charges.
• Despite progress, the company acknowledges significant unmet needs in the market, particularly in the treatment of symptomatic NOH in MSA patients.

Q & A Highlights

Q: Are there any changes in prescribing patterns post the launch of INSR, and what is the status of site activations for the Cypress study? A: Rhonda Farnum, Chief Business Officer, mentioned that while it's too early to see the full impact of INSR, there are anecdotal reports of it being added to existing treatments. Anya Miller, Head of Development, confirmed that the majority of sites for the Cypress study are now activated, progressing well as planned.

Q: What is driving the 40% year-over-year increase in hospital doses and market share for Yupelri, and what are the expectations moving forward? A: Rhonda Farnum explained that the growth is driven by increased formulary approvals and therapeutic interchange protocols, which have significantly boosted market share in hospitals. The focus remains on expanding these efforts to sustain growth.

Q: What prompted the formation of the strategic review committee, and what outcomes are expected? A: Rick Winningham, CEO, stated that the board regularly evaluates the company's strategy. Given the strong performance of Trilogy and other assets, the committee aims to explore options to unlock value for shareholders, with Lazard assisting in the review.

Q: How has the average selling price (ASP) for Yupelri been impacted, and what are the expectations for 2025? A: Rhonda Farnum noted that ASP improvements typically lag by two quarters. The recent success is attributed to supplier diversification and channel execution. Price improvements are expected to manifest in early 2025, alongside strong demand growth.

Q: How is the value proposition of Yupelri being communicated to patients, particularly in the hospital and community settings? A: Rhonda Farnum highlighted the focus on educating patients about the benefits of long-acting nebulized therapy, especially for those using short-acting treatments or facing challenges with handheld devices. The goal is to expand Yupelri's use among the 1.5 million potential patients.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.