Theravance Biopharma price target raised to $25 by BTIG on China approval

Published 26/06/2025, 21:56
Theravance Biopharma price target raised to $25 by BTIG on China approval

Investing.com - BTIG raised its price target on Theravance Biopharma (NASDAQ:TBPH) to $25.00 from $24.00 on Thursday, maintaining a Buy rating following Yupelri’s approval in China. Currently trading at $10.73, the stock appears overvalued according to InvestingPro analysis, though analyst targets range from $10 to $24, suggesting significant potential upside.

The approval triggers a $7.5 million milestone payment to Theravance, expected in the third quarter of 2025. Under the partnership agreement, Viatris will handle launch and commercialization in China with no commercial costs incurred by Theravance. With a "GOOD" overall financial health score from InvestingPro and holding more cash than debt, Theravance appears well-positioned to execute its growth strategy.

Theravance remains eligible for up to $37.5 million in sales-based milestones and 14-20% tiered royalties on Yupelri net sales in China. The approval is expected to drive additional growth for the franchise given China’s estimated 100 million COPD patients, of which approximately 43% have moderate-to-severe disease.

Viatris, as the 8th largest multinational company in China, brings substantial commercial presence with 4,200 sales representatives covering over 70,000 hospitals and 400,000 pharmacies across more than 300 cities.

BTIG’s price target increase reflects its adjustment of Yupelri’s probability of success in China to 100% from 95%, while noting that enrollment completion for Theravance’s CYPRESS study is expected in late summer 2025. The stock has demonstrated strong momentum with a 25.8% return over the past year, and analysts expect the company to achieve profitability in 2025. Get deeper insights into TBPH’s growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Theravance Biopharma reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of -$0.27, which fell short of analysts’ expectations of -$0.22. However, the company achieved a revenue of $15.4 million, slightly exceeding the forecast of $15.14 million, marking a 6% year-over-year increase. Theravance Biopharma also announced that China’s National Medical (TASE:BLWV) Products Administration approved YUPELRI for the treatment of chronic obstructive pulmonary disease, triggering a $7.5 million milestone payment from Viatris Inc (NASDAQ:VTRS). Additionally, the company settled a patent litigation case with Eugia Pharma, granting a royalty-free license to market a generic version of YUPELRI in the United States starting in 2039. BTIG analysts maintained their Buy rating on Theravance Biopharma stock, with a price target of $24.00, following the company’s strategic sale of future Trelegy royalties to GlaxoSmithKline (NYSE:GSK) for $225 million. The analysts highlighted the potential for Theravance to earn up to $150 million in milestones related to Trelegy sales, with sales thresholds positioned below consensus estimates. The company is also nearing the completion of enrollment for its CYPRESS study, evaluating ampreloxetine, with data disclosure expected in the first half of 2026.

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