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Introduction & Market Context
Theravance Biopharma (NASDAQ:TBPH) presented its second quarter 2025 financial results on August 12, showing significant improvement from its first quarter performance. The company’s stock closed at $11.40, up 4.56% for the day, with a slight increase of 0.88% in after-hours trading, reflecting positive investor sentiment toward the quarterly results.
The biopharmaceutical company, focused on respiratory diseases and neurological disorders, reported substantial growth in its YUPELRI franchise and a dramatically improved cash position following the sale of its TRELEGY royalty interest. This marks a significant turnaround from Q1 2025, when the company missed earnings expectations with an EPS of -$0.27 against a forecast of -$0.22.
Quarterly Performance Highlights
Theravance reported total revenue of $26.2 million for Q2 2025, driven primarily by strong YUPELRI sales and a milestone payment from China. YUPELRI (revefenacin), the company’s once-daily nebulized maintenance treatment for COPD, achieved net sales of $66.3 million, representing 22% year-over-year growth.
As shown in the following chart of YUPELRI’s historical sales performance, the product has demonstrated consistent growth since its launch:
The company highlighted particularly strong growth in the hospital setting, with doses increasing 31% year-over-year and reaching a new market share high of 20.4%. This performance benefited from a one-time favorable price adjustment, though even without this adjustment, growth would have been in the mid-teens.
Detailed Financial Analysis
Theravance’s financial position improved dramatically in Q2 2025, with cash and cash equivalents reaching $338.8 million, compared to $88.4 million in Q2 2024 and $131 million at the end of Q1 2025. This substantial increase was primarily due to the $225 million received from the sale of the company’s TRELEGY royalty interest.
The company’s second quarter financial highlights show significant improvement across several metrics:
For the quarter, Theravance reported GAAP net income of $54.8 million, compared to a loss of $16.5 million in Q2 2024. On a non-GAAP basis, the company reported a net loss of $4.2 million, improved from a $6.3 million loss in the same period last year. The VIATRIS collaboration revenue increased 31% year-over-year to $18.7 million, driving improved profit margins.
The detailed quarterly financial breakdown shows:
Strategic Initiatives
Theravance’s strategic focus remains on two key assets: YUPELRI and Ampreloxetine. For YUPELRI, the company outlined substantial growth potential beyond the current performance:
The company received a $7.5 million milestone payment triggered by YUPELRI’s approval in China, with potential for future royalties of 14-20% on Chinese sales. Theravance expects to reach the $250 million U.S. net sales threshold for YUPELRI in the near future, which would trigger an additional $25 million milestone payment.
For Ampreloxetine, Theravance’s investigational treatment for symptomatic neurogenic orthostatic hypotension (nOH) in patients with multiple system atrophy (MSA), the company expects to complete enrollment in the Phase 3 CYPRESS study by late summer, with topline data anticipated approximately six months later.
The commercial opportunity for Ampreloxetine appears promising, as the company positions it against existing treatments:
Forward-Looking Statements
Theravance reiterated its financial guidance for 2025, maintaining its outlook for operating expenses and projecting that non-GAAP net loss and cash burn will be similar to 2024 levels:
The company also highlighted potential near-term catalysts that could drive future growth:
TRELEGY, GSK’s once-daily triple therapy for COPD and asthma which generates milestone payments for Theravance, continues to show strong sales growth. With Q2 2025 net sales of $1.1 billion and year-to-date sales of $2.0 billion (up 8% year-over-year), TRELEGY is on track to trigger a $50 million milestone payment to Theravance in 2025:
Conclusion
Theravance Biopharma’s Q2 2025 presentation reveals a company with strengthening financials and promising growth prospects. The combination of robust YUPELRI sales growth, a substantially improved cash position, and potential near-term catalysts from both Ampreloxetine and TRELEGY positions the company well for future success.
With no debt and approximately $340 million in cash, Theravance has significant financial flexibility to support its development programs while potentially returning excess capital to shareholders. The upcoming Ampreloxetine Phase 3 data readout represents a particularly important inflection point that could further transform the company’s outlook in the coming year.
Full presentation:
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