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Theravance Biopharma, Inc. (TBPH)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $26.2M, up 84% YoY and 70% QoQ, driven by Viatris collaboration revenue ($18.7M, +31% YoY) and a $7.5M China approval milestone; GAAP diluted EPS was $1.08 due to a $75.1M gain on the sale of Trelegy royalty interests to GSK .
  • YUPELRI U.S. net sales (recognized by Viatris) reached $66.3M (+22% YoY), with hospital doses +31% YoY and a one-time favorable net price adjustment; customer demand +4% YoY .
  • Management reaffirmed 2025 guidance: R&D $32–$38M (ex-SBC), SG&A $50–$60M (ex-SBC), SBC $18–$20M; non-GAAP operating loss and cash burn similar to 2024; ended Q2 with $338.8M cash and no debt .
  • Wall Street consensus (S&P Global) for Q2 2025: revenue $26.03M vs actual $26.20M (slight beat); Primary EPS $0.674 vs actual Primary EPS -$0.084 (normalized miss, driven by exclusion of non-recurring items)*.
  • Near-term catalysts: completion of Phase 3 CYPRESS enrollment “late summer” with topline ~6 months later, and potential Trelegy milestones ($50M in 2025, $100M in 2026) from Royalty Pharma .

What Went Well and What Went Wrong

What Went Well

  • YUPELRI momentum: U.S. net sales $66.3M (+22% YoY); hospital doses +31% YoY; pricing/channel mix improvements, plus one-time favorable net price adjustment .
  • Strategic balance sheet actions: $225M cash from sale of remaining Trelegy royalty interest; quarter-end cash $338.8M; no debt .
  • Ampreloxetine execution: CYPRESS Phase 3 enrollment on track to complete late summer; advancing NDA modules and seeking priority review; quote: “We enter the second half of 2025 with momentum and a clear focus on ampreloxetine” .

What Went Wrong

  • Normalized profitability remained negative on core operations: Q2 non-GAAP net loss from operations of $(4.2)M (improved YoY but still loss) .
  • SG&A increased YoY to $18.4M (from $17.1M) reflecting pre-launch medical/commercial spend on ampreloxetine; R&D increased to $10.5M with enrollment nearing completion .
  • EPS normalization gap vs consensus: S&P “Primary EPS” actual -$0.084 vs consensus $0.674, reflecting exclusion of non-recurring licensing and Trelegy gain; potential for estimate confusion among investors*.

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$14.256 $15.388 $26.195
GAAP Net Income (Loss) ($USD Millions)$(16.529) $(13.579) $54.835
GAAP Diluted EPS ($USD)$(0.34) $(0.27) $1.08
Non-GAAP Net Loss ($USD Millions)$(6.250) $(8.618) $(4.225)
Net Income Margin (%)-115.9% -88.3% 209.3%

Notes: Net income margin computed from cited revenue and net income.

Actual vs Consensus (S&P Global) – Q2 2025

MetricConsensusActualResult
Revenue ($USD)$26.03M*$26.20M Beat (by ~$0.17M)*
Primary EPS ($USD)$0.674*$(0.084)*Miss (normalized EPS)*

Values marked with * retrieved from S&P Global.

Revenue Components and KPIs

MetricQ2 2024Q1 2025Q2 2025
Viatris Collaboration Revenue ($USD Millions)$14.256 $15.388 $18.695
Licensing Revenue ($USD Millions)$0.0 $0.0 $7.500 (China approval)
YUPELRI U.S. Net Sales (Viatris recognized) ($USD Millions)$54.5 $58.3 $66.3
TBPH Implied 35% of YUPELRI Net Sales ($USD Millions)$19.085 $20.420 $23.216
YUPELRI Customer Demand (YoY)—+5% +4%
YUPELRI Hospital Doses (YoY)—+48% +31%
Cash, Cash Equivalents & Marketable Securities ($USD Millions, quarter-end)$88.4 (FY 2024) $130.9 $338.8

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
R&D (ex-SBC)FY 2025$32–$38M $32–$38M Maintained
SG&A (ex-SBC)FY 2025$50–$60M $50–$60M Maintained
Share-Based CompensationFY 2025$18–$20M $18–$20M Maintained
Non-GAAP Operating Loss & Cash BurnFY 2025Similar to 2024 Similar to 2024; excludes one-time items Maintained
Trelegy Milestone RecognitionFY 2025–26Update in Q4: recognize other income only if cumulative milestones exceed $194M Q2 slides: “fully recognized when earned” example disclosure Accounting disclosure updated; monitor application

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
YUPELRI hospital strategyRecord hospital doses +49% YoY; formulary wins; transition-of-care focus Hospital doses +31% YoY; specialty pharmacy channel mix and persistency highlighted; new hospital market share high ~20% Sustained strength; execution scaling
Pricing/channel mixPricing discipline and improved channel mix aiding margins Continued net price improvement; one-time favorable adjustment in Q2 Margin expansion tailwind
China YUPELRISubmission expected ~2-year window; milestone upon approval NMPA approval secured; $7.5M milestone; Viatris leads launch; tiered 14–20% royalties Positive inflection
Ampreloxetine trial/CYPRESSEnrollment pace; FDA alignment on NDA content; target product profile Enrollment completing late summer; topline ~6 months later; NDA modules prepared; priority review planned Near-term pivotal catalyst
Tariffs/macroNo material impact expected; YUPELRI U.S. manufacturing; Trelegy milestones unaffected No new macro issues discussed; focus on trial and operations Neutral
Trelegy milestones$50M received for FY2024; high probability $150M in 2025–26 On pace given Q2 net sales ~$1.1B, YTD ~$2.0B Visibility improving

Management Commentary

  • CEO: “Strong execution across our business defined the second quarter... With the completion of the strategic monetization of our TRELEGY royalty interest, which brought in $225 million, these accomplishments have meaningfully strengthened our business” .
  • CFO: “Collaboration revenue grew 31% year over year... even excluding the one-time benefit to pricing... would have been over $17 million... We ended the quarter with approximately $340 million in cash” .
  • Development: “CYPRESS remains on track to complete enrollment... we intend to submit an application to support a full approval and... request priority review” .

Q&A Highlights

  • YUPELRI channel mix and specialty pharmacy: management emphasized better pull-through and persistency via specialty pharmacy; transition-of-care programs improving discharge-to-maintenance conversion .
  • China YUPELRI outlook: Viatris leads and incurs commercial costs; additional commentary deferred until Viatris finalizes launch plan .
  • Ampreloxetine pricing context: rare neuro drug launches averaged ~$380K/year; Northera ~ $280K/year; pricing will be refined post-data .
  • SG&A trajectory: stable through data readout; targeted launch implies measured SG&A ramp only if data positive .
  • Collaboration revenue leverage: margin expansion expected as costs stay relatively stable while net sales rise; but growth gap between collaboration revenue and sales should normalize .

Estimates Context

  • Q2 2025 revenue slightly beat S&P Global consensus ($26.20M vs $26.03M); Primary EPS missed on a normalized basis (-$0.084 actual vs $0.674 consensus), driven by exclusion of non-recurring licensing ($7.5M) and Trelegy gain ($75.1M) from normalized results .
  • GAAP diluted EPS of $1.08 reflects non-recurring items; investors should anchor EPS comparisons to S&P “Primary EPS” for normalization consistency*.
  • Expect consensus models to adjust for stronger YUPELRI collaboration revenue trajectory (+31% YoY) and cash/tax impacts from the Trelegy royalty sale .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Core revenue beat and expanding YUPELRI margins indicate durable commercial momentum; hospital channel is a structural differentiator .
  • Normalized EPS miss vs consensus is a function of non-recurring items excluded by S&P normalization; GAAP EPS strength is not indicative of recurring profitability .
  • Cash-rich balance sheet ($338.8M) and no debt provide flexibility ahead of the CYPRESS readout; expect ~$27M tax payments in 2H related to the Trelegy sale .
  • Near-term catalysts (CYPRESS enrollment completion and ~6-month topline window; potential $50M Trelegy milestone in 2025) could drive stock narrative and estimate revisions .
  • China YUPELRI approval adds milestone and high-margin royalty optionality with no commercial cost burden to TBPH .
  • Guidance reaffirmed; operational discipline continues, with SG&A kept measured pre-data and targeted ramp only upon a positive readout .
  • Trading implication: focus on trial timeline updates, hospital channel KPIs, and Viatris collaboration revenue progression as near-term stock drivers .