Theravance Biopharma (TBPH) Q3 Earnings call transcript Nov 12, 2024

Theravance Biopharma's Q3 2024 earnings call was a testament to the company's strategic shifts, growth opportunities, and a commitment to enhancing shareholder value. The call, led by CEO Rick Winningham and other key executives, provided investors and analysts with a comprehensive update on the company's operational and financial performance, as well as its strategic initiatives.

Operational and Financial Highlights

The call began with a review of Theravance's operational and financial performance. Key highlights included a 7% year-on-year growth in net sales for YUPELRI, the company's leading product, driven by increased demand and hospital doses. This growth has been attributed to strategic efforts, such as formulary wins and therapeutic interchange protocols, which aim to position patients for continued treatment after leaving hospitals. This focus on the hospital setting has also contributed to a nearly 19% share in the hospital long-acting NEB market, marking a new all-time high.

In addition to YUPELRI's success, Theravance's partnership with GSK for TRELEGY has been a significant contributor to the company's financial performance. With TRELEGY sales reaching $789 million in Q3 and on track to achieve the $50 million 2024 sales milestone, Theravance stands to benefit significantly from this collaboration.

Strategic Initiatives and Shareholder Value

One of the most notable aspects of the call was Theravance's strategic initiatives aimed at unlocking shareholder value. The company announced a separation of the role of CEO and Chair, with Susannah Gray being elected as the new Chair of the Board of Directors. This move, along with the formation of a Strategic Review Committee, demonstrates Theravance's commitment to proactively implementing measures aligned with shareholder interests.

The Strategic Review Committee, consisting of independent directors, is tasked with comprehensively exploring alternatives available to the company involving all of its key assets, including YUPELRI, ampreloxetine, TRELEGY, and its tax attributes. With Lazard acting as a financial advisor, the committee aims to maximize value for Theravance shareholders.

Growth Opportunities and Future Outlook

Looking ahead, Theravance's focus remains on maximizing the value of its assets while delivering on its mission of delivering medicines that make a difference to patients. The company is progressing well with both CYPRESS enrollment and regulatory and early commercialization preparations for ampreloxetine in nOH and MSA, setting the stage for important milestones in 2025.

Addressing Analyst Questions

During the Q&A session, analysts probed deeper into the company's performance and strategic initiatives. One notable topic was the impact of ensifentrine on YUPELRI's prescribing patterns. While it's too early to see the full effect, anecdotal feedback suggests that ensifentrine is being added on to YUPELRI, particularly in concomitant use scenarios. This could potentially lead to increased utilization of YUPELRI in the United States.

Another topic of interest was the Strategic Review Committee and its purpose. Rick Winningham explained that the Board determined that now was an appropriate time to undertake a formal review with Lazard's help of the options available to the company to unlock the value of its assets for the benefit of shareholders. This proactive approach underscores Theravance's commitment to maximizing value for its shareholders.

Conclusion

Theravance Biopharma's Q3 earnings call underscored the company's strategic shifts, growth opportunities, and commitment to enhancing shareholder value. With a strong operational performance, strategic initiatives, and a focus on unlocking value, Theravance is well-positioned to navigate the challenges and opportunities ahead. As the company moves forward, investors and analysts will be closely watching its progress, particularly the impact of ensifentrine on YUPELRI and the outcomes of the Strategic Review Committee's efforts.