Why Are Theravance Bio Shares Plummeting Premarket Today?
Benzinga
Sep. 15, 2021, 08:34 AM
- Theravance Biopharma Inc (NASDAQ:TBPH) will reduce its headcount by approximately 75% (estimated 270 positions), with most of the lay off to complete in November and the remainder in February 2022.
- The Company sees a total annualized operating expense savings of approximately $165 million in 2022 and expects a positive cash flow beginning in 2H of 2022.
- Theravance will halt the development of all non-respiratory disease-related programs except that it will close out the izencitinib Phase 2 Crohn's disease study and the ampreloxetine Phase 3 REDWOOD study.
- From now on, Theravance will focus on COPD and asthma medicines, including Yupelri, which is commercialized in partnership with Viatris Inc (NASDAQ:VTRS), and Trelegy, a respiratory therapy developed in collaboration with GlaxoSmithKline plc (NYSE:GSK).
- Trelegy is expected to generate peak sales of approximately $3.0 billion annually, while Yupelri can potentially generate peak sales of $400 million.
- The restructuring came after Theravance announced topline data from the Phase 3 study evaluating ampreloxetine for symptomatic neurogenic orthostatic hypotension (nOH). The study did not meet its primary endpoint.
- In light of these results, the Company will be determining the appropriate next steps for Study 0170 and Study 0171.
- Price Action: TBPH shares are down 19.90% at $6.44 during the premarket session on the last check Wednesday.
