TD Cowen has adjusted its outlook on Theravance Biopharma (NASDAQ: NASDAQ:TBPH), lowering the price target to $9 from the previous $10, while maintaining a Hold rating on the stock.
The revision follows the company's report of second-quarter 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.
The company experienced a decrease in Yupelri sales, attributed to changes in channel mix and net pricing, despite an increase in product volumes. Theravance Biopharma anticipates an improvement in pricing trends in the second half of the year.
Additionally, the company's partnership product, Trelegy, is on course to achieve its anticipated milestones of $50-100 million in the years 2024 through 2026.
A significant development in the company's pipeline is the delay in Phase III enrollment for its drug candidate Ampreloxetine, which has been pushed back by over six months with a new target of mid-2025.
Theravance reported a 1% decrease in net sales for its YUPELRI product in the second quarter of 2024, amounting to $54.5 million. The company attributes this to a lower net price realized due to changes in the brand's channel mix.
Despite this, Theravance Biopharma anticipates price improvements in the coming quarters and maintains optimism about YUPELRI's long-term growth potential in the US market for COPD maintenance treatment.
The company also announced delays in the Ampreloxetine program, with the last patient enrollment for the CYPRESS study now expected in mid-2025, postponing it from the second half of 2024. This delay is due to extended lead times for site activations at major US centers.
InvestingPro Insights
Theravance Biopharma's financial health and future prospects are a focal point for stakeholders, especially following TD Cowen's recent price target adjustment. In light of this, InvestingPro data reveals some critical metrics that can provide additional context. The company holds a market capitalization of approximately $434.29 million and has demonstrated a revenue growth of nearly 21% over the last twelve months as of Q2 2024. Despite a negative operating income margin of -66.92% during the same period, there's a silver lining as the company's net income is expected to grow this year.
InvestingPro Tips suggest that Theravance Biopharma's cash reserves surpass its debt, which is a strong indicator of financial stability. Furthermore, analysts have revised their earnings upwards for the upcoming period, signaling potential optimism in the company's profitability. Notably, Theravance Biopharma is trading near its 52-week low, which may present an opportunity for investors considering the company's anticipated profitability this year and its solid cash position. For those looking for more in-depth analysis, InvestingPro offers additional tips on their platform.
Overall, the data and insights provided by InvestingPro could be instrumental for investors who are contemplating the company's stock, especially in the context of its recent financial performance and the adjustments in market expectations.
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