Full Press Release Details
Theravance Biopharma,
Inc. Reports Fourth Quarter and Full Year 2025
Financial Results and Provides Corporate Update
IRELAND - March 19, 2026 - Theravance Biopharma, Inc. ("Theravance Biopharma" or the "Company")
(NASDAQ: TBPH) today reported financial and operational results for the fourth quarter and full year of 2025.
ended 2025 on a positive note from a financial perspective, achieving another record quarter of non-GAAP profitability, hitting a new
all-time high for YUPELRI brand-level profitability, and reaching $75 million in
key sales-based milestones. These results highlight the strength and durability of our commercial asset, YUPELRI ,
our commitment to operating with financial and operational discipline, and the strength of our balance sheet," said Rick E Winningham,
Chief Executive Officer of Theravance Biopharma. "Since announcing the CYPRESS study results earlier this month, we have made progress
implementing an organizational restructuring to streamline costs and align resources with the commercial opportunity ahead of YUPELRI .
We are confident that these actions, paired with the important work that the Board's Strategic Review Committee is doing to evaluate
opportunities available to the Company, will enable Theravance to deliver on our goal of maximizing value for shareholders."
Strategic Review Committee
In 2024, the Theravance
Board of Directors formed a Strategic Review Committee (the "Committee") composed entirely of independent directors to assess
all strategic alternatives available to the Company. Since then, the Committee has been working on an ongoing basis with Lazard, its independent
financial advisor, to evaluate opportunities to maximize shareholder value, including under multiple potential outcomes for the
CYPRESS study, which the Company announced on March 3rd did not meet the primary endpoint. Building upon this work, the Committee
is acting with urgency to evaluate a broad range of value maximizing and tax efficient alternatives, including but not limited to a sale
of the Company. In connection with the Company's March 3rd announcement to wind down the ampreloxetine program and implement
an organizational restructuring, the Committee has accelerated its evaluation of strategic alternatives for the Company. There can be
no assurance that the Committee's strategic review process will result in any transaction. Theravance Biopharma does not intend
to disclose further developments on this review process unless and until it determines that such disclosure is appropriate or necessary.
the U.S., Viatris is leading the commercialization of YUPELRI, and the Company co-promotes the product under a profit and loss sharing
arrangement (65% to Viatris; 35% to the Company).
from Royalty Pharma (RP) will be triggered if RP receives certain minimum royalty payments from GSK based on TRELEGY global net sales.
Non-GAAP profit (loss) consists of GAAP net income (loss) before taxes less (i) share-based compensation expense, (ii) non-cash
interest expense, and (iii) non-recurring revenue and income items. See the section titled "Non-GAAP Financial Measures"
for more information.
Operational Highlights
(revefenacin) inhalation solution, the first and only once-daily, nebulized LAMA (long-acting muscarinic antagonist) bronchodilator approved
in the U.S. for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD):
GSK reported fourth quarter 2025 global
net sales of approximately $970 million (up 14% vs. the fourth quarter of 2024) and full year net sales of approximately $3.9 billion
(up 13% vs. full year 2024)6:
4 Source: Viatris Customer
5 Source: IQVIA DDD, HDS, VA
and Non-Reporting Hospital through Sept '25.
6 GSK-reported Net Sales in
Organizational Restructuring Update
Fourth Quarter Financial Results
2026 Financial Guidance
Biopharma is implementing an organizational restructuring to streamline costs and align its resources with its commercial focus on YUPELRI.
The restructuring will involve winding down the R&D function and significantly reducing the G&A function. The restructuring
is expected to reduce operating expenses by approximately 60%, relative to 2025 actuals of $111.1 million. The full run-rate cost savings
of approximately $70 million are expected to fully materialize in the third quarter of 2026.
Together, the cost savings from the restructuring
and continued sales from YUPELRI are expected to result in the Company generating approximately $60 to $70 million of annualized cash
flow, starting in the third quarter of 2026. This cash flow projection is comprised of an estimated $45 to $55 million of Income from
Operations (excluding non-cash share-based compensation) and projected Interest and Other Income, and does not include potential income
from the $100 million TRELEGY milestone.
The restructuring is expected to impact approximately
50% of the overall workforce. This reduction includes the complete wind-down of the R&D organization and a decrease of approximately
50% in G&A employees. These actions are expected to be implemented over the next two quarters, and the Company expects to incur approximately
$5 to $7 million in one-time cash severance costs related to these actions.
Beginning with this quarter, earnings results will be released via
press release only. The Company will not host a conference call or webcast to discuss quarterly results.
About Theravance Biopharma
Theravance Biopharma, Inc.'s focus is to
deliver Medicines that Make a Difference in people's lives. In pursuit of its purpose, Theravance Biopharma
leverages decades of expertise, which has led to the development of FDA-approved YUPELRI (revefenacin) inhalation solution
indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). The Company is committed to creating/driving
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 Viatris
Specialty LLC. Trademarks, trade names or service marks of other companies appearing on this press release are the property of their respective
Forward-Looking Statements
This press release contains 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, Inc. (the "Company") 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, as amended, and the Private Securities Litigation Reform Act of 1995. Examples of such statements
include statements relating to: the Company's expectations regarding its future profitability, expenses and uses of cash, the Company's
goals, designs, strategies, plans and objectives, future growth of YUPELRI sales and future royalty payments, the winddown of the Company's
ampreloxetine program and R&D function and significant reduction of its G&A function, the consideration of strategic alternatives
for the Company, the ability to provide value to shareholders, the Company's regulatory strategies, the status of patent infringement
litigation initiated by the Company and its partner against certain generic companies in federal district courts, and contingent milestone
payments due to the Company from the sale of the Company's TRELEGY royalty interests. These statements are based on the current
estimates and assumptions of the management of Theravance Biopharma as of the date of this press release 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: factors that could increase the Company's
expenses beyond its expectations and any factors that could adversely affect its profitability, whether the TRELEGY milestone thresholds
will be achieved, delays or difficulties in winding down clinical studies, the timing of any potential strategic transaction with respect
to the Company, if at all, risks of collaborating with or relying on third parties to develop, manufacture and commercialize products,
and risks associated with establishing and maintaining sales, marketing and distribution capabilities with appropriate technical expertise
and supporting infrastructure, the ability of the Company to protect and to enforce its intellectual property rights, volatility and fluctuations
in the trading price and volume of the Company's shares, and general economic and market conditions. Other risks affecting the Company
are in the Company's Form 10-Q filed with the SEC on November 12, 2025, 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
Non-GAAP Financial Measures
Theravance Biopharma provides a non-GAAP metric in this press release.
Theravance Biopharma believes that non-GAAP net income (loss) provides meaningful information to assist investors in assessing prospects