Theravance Biopharma(TBPH) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported $54.5 million in net sales for YUPELRI, reflecting a 1% year-over-year decrease despite a 43% increase in hospital doses and a 13% increase in overall customer demand [3][8][10] - Collaboration revenue was reported at$ 14.3 million, representing a 4% year-over-year growth, although this was below internal expectations due to pricing dynamics affecting net sales [29][30] - The company ended the quarter with $96 million in cash and no debt, with operating expenses and cash burn metrics in line with expectations [7][30] Business Line Data and Key Metrics Changes - YUPELRI's net sales performance showed a 1% decline quarter-on-quarter and year-on-year, driven by lower realized net prices due to an evolved channel mix [8][10] - Hospital doses shipped increased by 43% year-on-year, reaching an all-time high, indicating strong demand generation [11] - The company reported an increase in market share for long-acting net market, with hospital share surpassing 18% and community share reaching 32% [12] Market Data and Key Metrics Changes - The company anticipates a more stable pricing environment for YUPELRI in 2025 and beyond, with continued demand growth expected across all patient fulfillment channels [4][10] - The potential introduction of YUPELRI in China is highlighted as a significant opportunity, with the market being the second largest globally for respiratory medications [16][17] Company Strategy and Development Direction - The company aims to grow YUPELRI in the U.S. and sees a clear path forward, focusing on hospital strategies and concomitant messaging to drive adoption [34] - The company is executing a well-designed development regulatory strategy for Ampreloxetine, with expectations for key milestones in the CYPRESS study [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of YUPELRI, despite short-term pricing challenges, and anticipates improvements in pricing dynamics in 2025 [37][50] - The company remains optimistic about achieving significant milestones in the near term, particularly related to Trelegy, with sales trajectory showing positive trends [34] Other Important Information - The company incurred a$ 3 million non-cash impairment charge due to the write-down in the value of operating lease assets, which is expected to be a one-time charge [30] - The company is managing the CYPRESS study internally to ensure high-quality results and has encountered longer timelines for site activations [20][24] Q&A Session Summary Question: Update on YUPELRI pricing dynamics - Management noted that the channel mix has shifted, impacting gross to net pricing, and anticipates slight price increases in the second half of the year [36][37] Question: Details on channel mix effects - Management explained that varied discounting ranges across different channels contribute to the channel mix dynamics [38][39] Question: Update on Paragraph IV litigations for YUPELRI - Management provided a brief update on ongoing litigation, noting settlements with some litigants and the addition of a new patent for YUPELRI [43][44] Question: Clarification on CYPRESS study timeline - Management confirmed that top-line data from the CYPRESS study is expected approximately six months after the last patient is enrolled in mid-2025 [47][54]