NASDAQ$TBPH

Theravance Biopharma Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported third quarter financial results and provided a business update.

Theravance Biopharma reported its Q3 2022 financial results, highlighting the completion of the sale of its TRELEGY royalty interest to Royalty Pharma for over $1.5 billion in potential total value. The company is now debt-free and focused on value creation.

  • Closed the sale of its 85% economic interest in the sales-based royalty rights on worldwide net sales of GSK's TRELEGY ELLIPTA to Royalty Pharma for over $1.5 billion in potential total value.
  • Received upfront cash payment of approximately $1.1 billion from Royalty Pharma.
  • Global net sales of TRELEGY ELLIPTA reached $552 million in Q3 2022, up 23% from Q3 2021.
  • The Company purchased all of GSK's equity stake in Theravance Biopharma, consisting of approximately 9.6 million shares at $9.75 per share on September 20, 2022.

Headline financials

Total Revenue

$12.5M

Previous: $13.2M-5.6%
EPS (adj)

-$0.21

Previous: -$0.46+54.3%
TRELEGY Global Net Sales

$552M

No prior period
Free Cash Flow

$917M

Previous: -$35.3M+2696.1%
Net Income

$917M

Previous: -$35.3M+2696.1%
Operating Income

-$14.2M

Previous: -$53.6M+73.5%
Gross Profit

$10.8M

Previous: -$30.5M+135.4%
Cash & Equivalents

$419M

Previous: $121M+244.7%
Total Assets

$763M

Previous: $403M+89.4%
Stock-Based Comp

$8.53M

Previous: $14.4M-40.6%

Revenue & EPS history

Theravance · Revenue · Quarterly

$12.5M

Q3 2022-5.6%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Theravance · $19.4K total across 1 segment · Q3 2022

  • YUPELRI
    $19.4K

Forward guidance

The company is focused on advancing its pipeline and expects the $25 million investment from Royalty Pharma to fund the majority of the Phase 3 costs.

Tailwinds

  • Company reiterates it expects the $25 million investment from Royalty Pharma to fund the majority of the Phase 3 costs
  • Company held a Type C meeting with the FDA in June 2022 and agreed on a path to NDA filing with one new Phase 3 clinical study in MSA patients with symptomatic nOH which is planned to start in the first quarter of 2023.
  • The registrational Phase 3 Study in MSA patients with nOH (Study 0197, CYPRESS) is expected to be a 12-week open-label
  • Company is entitled to a milestone payment from Royalty Pharma of $50 million if TRELEGY global net sales are equal to or exceed $2.9 billion in 2023
  • Company plans to enter into an Open Market Share Repurchase Plan to facilitate the repurchase of approximately $60 million of its ordinary shares in open market purchases subsequent to the completion of the Offer, with a goal to complete this program by the end of 2023.

Headwinds

  • Delays or difficulties in commencing, enrolling or completing clinical studies
  • The potential that results from clinical or non-clinical studies indicate the Company's product candidates or product are unsafe, ineffective or not differentiated
  • Risks of decisions from regulatory authorities that are unfavorable to the Company
  • Dependence on third parties to conduct clinical studies
  • Risks of collaborating with or relying on third parties to discover, develop, manufacture and commercialize products

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.4%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

53%

26 / 49 earnings

Positive

+22.6%

Q3 2025

Best reaction

-20.0%

Q2 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+2.9%+2.0%
Q1 2026+0.4%-2.8%-3.8%
Q3 2025+22.6%+15.3%+17.2%
Q2 2025+4.2%+14.2%+20.0%
Q1 2025-9.0%-15.1%+13.6%
Q4 2024+2.1%+0.2%+1.7%
Q3 2024+6.6%+4.8%+8.7%
Q2 2024-18.8%-20.5%-16.6%
Q1 2024+0.1%-1.0%-7.9%
Q4 2023+7.9%+5.1%+0.3%
Q3 2023+2.8%+1.3%+6.3%
Q2 2023-2.1%+0.2%-4.0%
Q1 2023+0.4%-0.3%-1.4%
Q4 2022+9.4%+2.0%+8.6%
Q3 2022+4.0%+13.2%+7.4%
Q2 2022-5.4%-2.6%+1.4%
Q1 2022-9.5%-10.5%-12.0%
Q4 2021+6.3%+7.8%+4.0%
Q3 2021+7.1%+12.7%-2.1%
Q2 2021-5.9%-5.9%-36.4%
Q1 2021-1.5%-0.6%-15.6%
Q4 2020-3.3%-8.4%+10.7%
Q3 2020-13.4%-3.6%-12.0%
Q2 2020-11.9%-15.8%-15.8%
Q1 2020-2.5%+3.8%-6.7%
Q4 2019-10.5%+0.6%+0.7%
Q3 2019+0.9%+3.3%+23.3%
Q2 2019+6.4%-0.1%+10.8%
Q1 2019-11.8%-12.8%-37.8%
Q4 2018+1.0%-0.5%-7.0%
Q3 2018-1.5%+7.5%+14.1%
Q2 2018+17.3%+20.3%+21.0%
Q1 2018+5.4%+7.2%+1.1%
Q4 2017-8.4%+0.7%-15.7%
Q3 2017-4.3%-0.7%-10.6%
Q2 2017-20.0%-19.3%+3.8%
Q1 2017+1.5%-4.6%-3.4%
Q4 2016+1.0%+5.9%+22.2%
Q3 2016+17.6%+32.1%+17.6%
Q2 2016+3.0%+6.2%+15.6%
Q1 2016+5.1%
Q4 2015-0.3%
Q3 2015-1.5%
Q2 2015+0.4%
Q1 2015+3.0%
Q4 2014-6.9%
Q3 2014-1.9%
Q2 2014-7.5%
Q1 2014-2.6%
Q3 2013
Q2 2013
Q4 2012
Q3 2012

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