Business
Theravance Biopharma, Inc. Announces Strategic Actions to Focus on Respiratory Disease Portfolio
- Implements significant cost reduction program - Expects to be sustainably cash flow positive beginning 2H 2022 - Investor conference call and webcast today
About this update from Theravance Biopharma, Inc.
[{"type":"text","content":"- Implements significant cost reduction program\n - Expects to be sustainably cash flow positive beginning 2H 2022\n - Investor conference call and webcast today at 8:00 AM ET (5:00 AM PT)\n\n\nDUBLIN and SOUTH SAN FRANCISCO, Calif., Sept. 15, 2021 /PRNewswire/ -- Theravance Biopharma, Inc. (\"Theravance Biopharma\" or the \"Company\") (NASDAQ: TBPH) today announced strategic actions to focus on leveraging its expertise in developing and commercializing respiratory therapeutics in order to maximize shareholder value. These changes follow a comprehensive scenario planning exercise led by the Board and Management with the assistance of outside advisors. In order to implement this plan, Theravance Biopharma will immediately initiate a significant cost reduction program:\n\n \n \n \n \n \n \n\n \nHeadcount will be reduced by approximately 75%, an estimated 270 positions1, with approximately 75% of the reduction expected to be completed in November 2021 and the remainder to be completed in February 2022 Total annualized operating expense2 savings of approximately $165 million in 2022 compared with the Company's updated 2021 Financial Guidance below Updated 2021 and Preliminary 2022 Financial Guidance2:\nExpenses$ million\n2021 Initial Guidance\n2021 UpdatedGuidance\n2022 Preliminary Guidance\nR&D\n$195 – 225\n$180 – 190\n$55 – 65\nSG&A\n$80 – 90\n$70 – 80\n$30 – 40\nBy implementing these strategic actions, Theravance Biopharma expects to become sustainably cash flow positive beginning in the second half of 2022. \nThe go-forward organization will build on the Company's proven track record of innovation leading to several approved medicines for COPD and asthma, including YUPELRI®, launched in 2019, which was discovered and developed by the Company and is now commercialized in partnership with Viatris Inc., and TRELEGY, a respiratory medicine developed by Glaxo Group Limited in collaboration with the Company's predecessor, Theravance, Inc.\nTRELEGY is currently expected to generate global peak sales of approximately $3.0 billion annually3. YUPELRI remains early in its product lifecycle, has demonstrated quarter-over-quarter market share growth, and has the potential to generate US peak sales exceeding $400 million4. Theravance Biopharma believes the strong and growing cash flows of YUPELRI and TRELEGY will generate significant value cr...