DUBLIN, May 4, 2021 /PRNewswire/ -- Theravance
Biopharma, Inc. ("Theravance Biopharma" or the "Company") (NASDAQ:
TBPH) today reported financial results for the first quarter of
2021.
"2021 is on track to be a transformational year as we make
significant progress towards our business goals," said Rick E
Winningham, Chief Executive Officer. "Our commercial assets
provide cash flow to invest in our diversified clinical pipeline.
GSK's TRELEGY continues an exceptional, unabated growth trajectory.
Our YUPELRI team, with our partner Viatris, continues to drive
performance despite pandemic-associated headwinds. While we
experienced slightly down sequential quarter-over-quarter net sales
results, our January 2021
market share was 19%—its highest level since
launch—and we ended the quarter on a strong note with
March volume demand demonstrating 28% growth over
February."
"Additionally, we are focused on advancing development of our
innovative and differentiated pipeline. We continue to progress
nezulcitinib, our wholly-owned nebulized lung-selective pan-JAK
inhibitor, our potentially best-in-class ampreloxetine for
symptomatic neurogenic orthostatic hypotension and izencitinib, our
oral gut-selective pan-JAK inhibitor for inflammatory bowel disease
that is partnered with Janssen Pharmaceuticals. Our team is looking
forward to four significant clinical readouts between now and Q1
2022: our Phase 2 nezulcitinib trial in Q2, our
Phase 3 ampreloxetine and Phase 2b
izencitinib Ulcerative Colitis trials each in Q3, and the
Phase 2 izencitinib Crohn's disease trial in Q4/Q1 2022. We remain
committed to delivering each of these clinical data sets with the
highest quality as expeditiously as possible."
Upcoming Clinical Milestones
- Q2 2021: Nezulcitinib (nebulized lung-selective
pan-Janus kinase (JAK) inhibitor) Phase 2 for acute
hyperinflammation of the lung in COVID-19 (study 0188) – enrollment
complete and topline results expected in Q2.
- Q3 2021: Ampreloxetine (norepinephrine reuptake
inhibitor) Phase 3 for symptomatic neurogenic orthostatic
hypotension (study 0169) – enrollment near complete and topline
results expected in Q3.
- Q3 2021: Izencitinib (gut-selective oral pan-JAK
inhibitor for inflammatory intestinal diseases) Phase 2b in ulcerative colitis (study 0157) –
enrollment complete and topline results expected in Q3.
- Q4 2021/Q1 2022: Izencitinib (gut-selective oral pan-JAK
inhibitor for inflammatory intestinal diseases) due to enrollment
challenges, Phase 2 in Crohn's disease (study 0173) – enrollment
ongoing and topline results now expected in late Q4 2021/early Q1
2022.
Quarterly Highlight
- YUPELRI® (revefenacin) inhalation solution,
the first and only once-daily, nebulized bronchodilator approved in
the U.S. for the maintenance treatment of patients with chronic
obstructive pulmonary disease (COPD), continued to increase its
share of the long-acting nebulized COPD market, increasing to 19.0%
in January 2021, up from 18.6% in
December 2020.
Economic Interest
- TRELEGY (first once-daily single inhaler triple therapy
for COPD and asthma), in which the Company holds an economic
interest, posted first quarter 2021 global net sales of
$341 million (up from $249 million, 36.9%, in the first quarter of
2020); Theravance Biopharma is entitled to tiered royalties of 5.5%
to 8.5% of TRELEGY global net sales.3
First Quarter Financial Results
- Revenue: Total revenue for the first quarter of 2021 was
$14.3 million, comprised of non-cash
collaboration revenue of $3.9 million
primarily attributed to our global collaboration with Janssen and
$10.4 million in Viatris
collaboration revenue. Total revenue for the first quarter
represents a $5.6 million decrease
over the same period in 2020.
- YUPELRI: The Viatris collaboration revenue of
$10.4 million for the first quarter
of 2021 represents amounts receivable from Viatris and is comprised
of the Company's 35% share of net sales of YUPELRI as well as its
proportionate amount of the total shared costs incurred by the two
companies. The non-shared YUPELRI costs incurred by Theravance
Biopharma are recorded within operating expenses. While Viatris
records the total net sales of YUPELRI within its financial
statements, our implied 35% share of net sales of YUPELRI for the
first quarter of 2021 was $12.9
million.
- Research and Development (R&D) Expenses: R&D
expenses for the first quarter of 2021 were $67.6 million, compared to $66.0 million in the same period in 2020. First
quarter R&D expenses included total non-cash share-based
compensation of $7.9 million.
- Selling, General and Administrative (SG&A) Expenses:
SG&A expenses for the first quarter of 2021 were $30.6 million, compared to $26.3 million in the same period in 2020. First
quarter SG&A expenses included total non-cash share-based
compensation of $7.9 million.
- Operating Loss: Operating loss for the first quarter of
2021 was $83.9 million compared to
$72.5 million in the same period of
2020.
- Cash Position: Cash, cash equivalents and marketable
securities totaled $210.0 million as
of March 31, 2021.
2021 Financial Guidance
- Operating Expenses (excluding share-based
compensation): The Company expects full year 2021 R&D
expense of $195 million to
$225 million, and SG&A expense of
$80 million to $90 million.
Conference Call and Live Webcast Today at 5 pm ET
Theravance Biopharma will hold a conference call and live
webcast accompanied by slides today at 5 pm
ET / 2 pm PT / 10 pm IST. To participate, please dial (855)
296-9648 from the U.S. or (920) 663-6266 for international callers,
using the confirmation code 1092615. Those interested in listening
to the conference call live via the internet may do so by visiting
Theravance.com, under the Investors section, Presentations and
Events.
A replay will be available on Theravance.com for 30 days through
June 3, 2021. An audio replay will
also be available through 8:00 pm ET
on May 11, 2021, by dialing (855)
859-2056 from the U.S., or (404) 537-3406 for international
callers, and then entering confirmation code 1092615.
About Theravance Biopharma
Theravance Biopharma, Inc. is a diversified biopharmaceutical
company primarily focused on the discovery, development and
commercialization of organ-selective medicines. Its purpose is to
pioneer a new generation of small molecule drugs designed to better
meet patient needs. Its research is focused in the areas of
inflammation and immunology.
In pursuit of its purpose, Theravance Biopharma applies insights
and innovation at each stage of its business and utilizes its
internal capabilities and those of partners around the world. The
Company applies organ-selective expertise to target disease
biologically, to discover and develop medicines that may expand the
therapeutic index with the goal of maximizing efficacy and limiting
systemic side effects. These efforts leverage years of experience
in developing lung-selective medicines to treat respiratory
disease, including FDA-approved YUPELRI® (revefenacin)
inhalation solution indicated for the maintenance treatment of
patients with chronic obstructive pulmonary disease (COPD). Its
pipeline of internally discovered programs is targeted to address
significant patient needs.
Theravance Biopharma has an economic interest in potential
future payments from Glaxo Group Limited or one of its affiliates
(GSK) pursuant to its agreements with Innoviva, Inc. relating to
certain programs, including TRELEGY.
For more information, please visit www.theravance.com.
THERAVANCE BIOPHARMA®, THERAVANCE®, and the Cross/Star logo are
registered trademarks of the Theravance Biopharma group of
companies (in the U.S. and certain other countries).
YUPELRI® is a registered trademark of Mylan Specialty
L.P., a Viatris company. Trade names or service marks of other
companies appearing on this press release are the property of their
respective owners
This press release contains and the conference call will contain
certain "forward-looking" statements as that term is defined in the
Private Securities Litigation Reform Act of 1995 regarding, among
other things, statements relating to goals, plans, objectives,
expectations and future events. Theravance Biopharma intends such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 21E
of the Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995. Examples of such statements include
statements relating to: the Company's goals, designs, strategies,
plans and objectives, the Company's regulatory strategies and
timing of clinical studies (including the data therefrom), the
potential characteristics, benefits and mechanisms of action of the
Company's product and product candidates, the potential that the
Company's research programs will progress product candidates into
the clinic, the Company's expectations for product candidates
through development, the Company's expectations regarding its
allocation of resources, potential regulatory approval and
commercialization (including their differentiation from other
products or potential products), product sales or profit share
revenue and the Company's expectations for its expenses, excluding
share-based compensation and other financial results. These
statements are based on the current estimates and assumptions of
the management of Theravance Biopharma as of the date of the press
release and the conference call and are subject to risks,
uncertainties, changes in circumstances, assumptions and other
factors that may cause the actual results of Theravance Biopharma
to be materially different from those reflected in the
forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements include, among others, risks related to:
disagreements with Innoviva, Inc. and TRC LLC, the uncertainty of
arbitration and litigation and the possibility that the results of
these proceedings could be adverse to the Company, delays or
difficulties in commencing, enrolling or completing clinical
studies, the potential that results from clinical or non-clinical
studies indicate the Company's compounds or product candidates are
unsafe or ineffective, risks that product candidates do not obtain
approval from regulatory authorities, the feasibility of
undertaking future clinical trials for our product candidates based
on policies and feedback from regulatory authorities, dependence on
third parties to conduct clinical studies, delays or failure to
achieve and maintain regulatory approvals for product candidates,
risks of collaborating with or relying on third parties to
discover, develop, manufacture and commercialize products, and
risks associated with establishing and maintaining sales, marketing
and distribution capabilities with appropriate technical expertise
and supporting infrastructure. In addition, while we expect the
effects of COVID-19 to continue to adversely impact our business
operations and financial results, the extent of the impact on our
ability to generate revenue from YUPELRI® (revefenacin), our
clinical development programs (including but not limited to our
later stage clinical programs for izencitinib and ampreloxetine),
and the value of and market for our ordinary shares, will depend on
future developments that are highly uncertain and cannot be
predicted with confidence at this time. These potential future
developments include, but are not limited to, the ultimate duration
of the COVID-19 pandemic, travel restrictions, quarantines, social
distancing and business closure requirements in the United States and in other countries,
other measures taken by us and those we work with to help protect
individuals from contracting COVID-19, and the effectiveness of
actions taken globally to contain and treat the disease, including
vaccine availability, distribution, acceptance and effectiveness.
Other risks affecting Theravance Biopharma are in the Company's
Form 10-K filed with the SEC on February 26,
2021 and other periodic reports filed with the SEC. In
addition to the risks described above and in Theravance Biopharma's
filings with the SEC, other unknown or unpredictable factors also
could affect Theravance Biopharma's results. No forward-looking
statements can be guaranteed, and actual results may differ
materially from such statements. Given these uncertainties, you
should not place undue reliance on these forward-looking
statements. Theravance Biopharma assumes no obligation to update
its forward-looking statements on account of new information,
future events or otherwise, except as required by law.
Contact: Gail B. Cohen
Corporate Communications
917-214-6603
1 While Viatris Inc. ("Viatris")
records the total YUPELRI net sales, the Company is entitled to a
35% share of the profits and losses pursuant to a co-promotion
agreement with Viatris.
2 As reported by Glaxo Group
Limited or one of its affiliates (GSK); reported sales converted to
USD; economic interest related to TRELEGY (the combination
of fluticasone furoate, umeclidinium, and vilanterol
(FF/UMEC/VI), jointly developed by GSK and Innoviva, Inc.)
entitles the Company to upward tiering payments equal to
approximately 5.5% to 8.5% on worldwide net sales of the product
(net of Theravance Respiratory Company, LLC (TRC) expenses paid and
the amount of cash, if any, expected to be used in TRC over the
next four fiscal quarters). 75% of the income from the Company's
investment in TRC is pledged to service outstanding notes
and 25% of income from the Company's investment in TRC is
retained by the Company.
3 As reported by Glaxo Group Limited
or one of its affiliates (GSK); reported sales converted to USD;
economic interest related to TRELEGY (the combination of
fluticasone furoate, umeclidinium, and vilanterol
(FF/UMEC/VI), jointly developed by GSK and Innoviva, Inc.)
entitles the Company to upward tiering payments equal to
approximately 5.5% to 8.5% on worldwide net sales of the product
(net of Theravance Respiratory Company, LLC (TRC) expenses paid and
the amount of cash, if any, expected to be used in TRC over the
next four fiscal quarters). 75% of the income from the Company's
investment in TRC is pledged to service outstanding notes
and 25% of income from the Company's investment in TRC is
retained by the Company.
THERAVANCE
BIOPHARMA, INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2021
|
|
2020
|
Assets
|
(Unaudited)
|
|
(1)
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents and short-term marketable securities
|
$
|
209,968
|
|
$
|
292,941
|
|
Receivables from
collaborative arrangements
|
|
11,915
|
|
|
15,868
|
|
Receivables from
licensing arrangements
|
|
-
|
|
|
-
|
|
Amounts due from TRC,
LLC
|
|
42,359
|
|
|
53,799
|
|
Prepaid clinical and
development services
|
|
18,792
|
|
|
20,374
|
|
Other prepaid and
current assets
|
|
10,037
|
|
|
10,359
|
|
Total current
assets
|
|
293,071
|
|
|
393,341
|
|
Property and
equipment, net
|
|
16,944
|
|
|
16,422
|
|
Operating lease
assets
|
|
42,517
|
|
|
43,260
|
|
Equity in net assets
of TRC, LLC
|
|
19,439
|
|
|
12,750
|
|
Restricted
cash
|
|
833
|
|
|
833
|
|
Other
assets
|
|
2,304
|
|
|
2,451
|
|
Total
assets
|
$
|
375,108
|
|
$
|
469,057
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Deficit
|
|
|
|
|
|
|
Current
liabilities
|
$
|
86,492
|
|
$
|
123,571
|
|
Convertible senior
notes due 2023, net
|
|
227,230
|
|
|
226,963
|
|
Non-recourse notes
due 2035, net
|
|
375,181
|
|
|
372,873
|
|
Long-term operating
lease liabilities
|
|
57,026
|
|
|
47,220
|
|
Other long-term
liabilities
|
|
2,397
|
|
|
2,181
|
|
Shareholders'
deficit
|
|
(373,218)
|
|
|
(303,751)
|
|
Total liabilities and
shareholders' deficit
|
$
|
375,108
|
|
$
|
469,057
|
|
|
|
|
|
|
|
|
________________________________
|
|
|
|
|
|
|
(1)
The condensed consolidated balance sheet as of December 31, 2020
has been derived from the audited consolidated
financial statements included in the Company's Annual Report
on Form 10-K for the year ended December 31, 2020.
|
|
|
THERAVANCE
BIOPHARMA, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
(Unaudited)
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Collaboration
revenue
|
|
$
|
3,872
|
|
$
|
6,632
|
|
|
Licensing
revenue
|
|
|
-
|
|
|
1,500
|
|
|
Viatris collaboration
agreement
|
|
|
10,385
|
|
|
11,730
|
|
|
Total
revenue
|
|
|
14,257
|
|
|
19,862
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Research
and development (1)
|
|
|
67,599
|
|
|
66,013
|
|
|
Selling,
general and administrative (1)
|
|
|
30,550
|
|
|
26,325
|
|
|
Total
costs and expenses
|
|
|
98,149
|
|
|
92,338
|
|
|
Loss from
operations
|
|
|
(83,892)
|
|
|
(72,476)
|
|
|
Income from
investment in TRC, LLC
|
|
|
16,547
|
|
|
13,515
|
|
|
Interest
expense
|
|
|
(11,873)
|
|
|
(9,941)
|
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
|
(15,464)
|
|
|
Interest and other
income, net
|
|
|
(234)
|
|
|
1,460
|
|
|
Loss before income
taxes
|
|
|
(79,452)
|
|
|
(82,906)
|
|
|
Provision for income
tax expense
|
|
|
(227)
|
|
|
(147)
|
|
|
Net
loss
|
|
$
|
(79,679)
|
|
$
|
(83,053)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
|
$
|
(1.24)
|
|
$
|
(1.40)
|
|
|
Shares used to
compute basic and diluted net loss per share
|
|
|
64,493
|
|
|
59,463
|
|
|
|
|
|
|
|
|
|
|
|
________________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Amounts
include share-based compensation expense as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
(In thousands)
|
|
2021
|
|
2020
|
|
|
Research and
development
|
|
$
|
7,921
|
|
$
|
7,865
|
|
|
Selling, general and
administrative
|
|
|
7,911
|
|
|
7,411
|
|
|
Total share-based
compensation expense
|
|
$
|
15,832
|
|
$
|
15,276
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Theravance Biopharma, Inc.