Breaking Down Theravance Biopharma, Inc. (TBPH) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in the biopharmaceutical sector? Theravance Biopharma Inc. (TBPH) has recently reported its financial results for 2024, and there are key figures every investor should know. Did you know that YUPELRI® net sales hit an all-time high of $66.7 million in Q4 2024 and reached $238.6 million for the entire year, marking an 8% increase compared to 2023? Furthermore, TRELEGY net sales soared to $3.46 billion in FY 2024, triggering a $50 million milestone payment to Theravance Biopharma. Let’s delve into these figures and more to understand the financial health of Theravance Biopharma and what it means for your investment strategy.

Theravance Biopharma, Inc. (TBPH) Revenue Analysis

Understanding Theravance Biopharma, Inc.'s (TBPH) revenue streams is crucial for investors. A detailed look into the company's revenue composition, growth trends, and segment contributions provides valuable insights into its financial health and future prospects. You might also be interested in Mission Statement, Vision, & Core Values of Theravance Biopharma, Inc. (TBPH).

Here’s a breakdown of Theravance Biopharma, Inc.'s (TBPH) primary revenue sources:

• Viatris Collaboration Revenue: A significant portion of Theravance Biopharma, Inc.'s (TBPH) revenue comes from its collaboration with Viatris, primarily through its share of net sales of YUPELRI.
• YUPELRI: US net sales of YUPELRI, recognized by Viatris, reached an all-time high of $66.7 million in Q4 2024 and $238.6 million in FY 2024, up 10% and 8%, respectively, compared with 2023.
• TRELEGY: FY 2024 global net sales of $3.46 billion, as reported by GSK, up 26% compared with 2023, triggering a $50 million milestone payment to Theravance Biopharma, Inc. (TBPH).

Here’s a look at the year-over-year revenue growth rate and historical trends:

• Overall Growth: Theravance Biopharma, Inc. (TBPH) experienced a revenue increase of 12.12% in the fiscal year ending December 31, 2024, with revenue reaching $64.38 million compared to $57.42 million in the previous year.
• Quarterly Performance: In the quarter ending December 30, 2024, Theravance Biopharma, Inc. (TBPH) reported revenue of $18.75 million, reflecting an 11.18% increase.
• Viatris Collaboration Growth: Viatris collaboration revenue increased by $1.4 million, or 8%, in the fourth quarter of 2024 compared to the same period in 2023, primarily due to higher net sales.

The contribution of different business segments to overall revenue is as follows:

• Viatris Collaboration: Total revenue for the fourth quarter of 2024 was $18.8 million, consisting entirely of Viatris collaboration revenue.
• YUPELRI Contribution: Theravance Biopharma, Inc.'s (TBPH) 35% share of net sales of YUPELRI for Q4 2024 was $23.3 million, a 10% increase compared to the same period in 2023.
• TRELEGY Milestone: FY 2024 global net sales of $3.46 billion for TRELEGY triggered a $50 million milestone payment to Theravance Biopharma, Inc. (TBPH).

There have been some significant changes in revenue streams:

• TRELEGY Royalties: Royalties of up to 8.5% on TRELEGY net sales are set to return to Theravance Biopharma, Inc. (TBPH) in eligible territories beginning mid-2029, which is expected to be a significant driver of long-term value.
• Milestone Achievement: The $3.46 billion in FY 2024 global net sales of TRELEGY was sufficient to trigger a $50 million milestone payment from Royalty Pharma, with cash received in February 2025.

In summary, Theravance Biopharma, Inc.'s (TBPH) revenue streams are heavily influenced by its collaborations, particularly with Viatris for YUPELRI and GSK for TRELEGY. The growth in YUPELRI sales and the achievement of TRELEGY milestones highlight the company's ability to generate revenue through strategic partnerships and successful product commercialization.

Theravance Biopharma, Inc. (TBPH) Profitability Metrics

Analyzing Theravance Biopharma, Inc. (TBPH)'s profitability involves examining its gross profit, operating profit, and net profit margins to understand the company's financial health and operational efficiency. By comparing these metrics against industry averages and tracking their trends over time, investors can gain valuable insights into TBPH's ability to generate profits.

Here's a breakdown of key profitability aspects:

• Gross Profit: This is the revenue a company retains after deducting the direct costs associated with producing its goods and services.
• Operating Profit: Calculated by deducting operating expenses (such as administrative costs and research and development) from gross profit.
• Net Profit: This is a company's profit after all expenses, including interest, taxes, and depreciation, have been deducted from total revenue.

Investors should monitor these margins to assess Theravance Biopharma, Inc.'s efficiency in managing costs and maximizing profits. For instance, a rising gross margin may indicate improved cost control or pricing strategies, while a declining net profit margin could signal issues with expense management or increased competition.

To provide a clear picture of Theravance Biopharma, Inc.'s profitability, a comparative analysis against industry averages is essential. This benchmark helps investors understand whether TBPH is performing above or below its peers.

Operational efficiency plays a crucial role in profitability. Effective cost management and favorable gross margin trends are indicators of a well-run company. Investors should closely analyze these aspects to determine if Theravance Biopharma, Inc. is optimizing its resources to achieve sustainable profitability.

Detailed financial ratios and data can offer a more in-depth understanding. Consider the following example of how key profitability metrics might be presented:

In this example, while the company is still operating at a loss (negative operating and net profit margins), there is a clear trend of improvement from 2022 to 2024. The gross profit margin consistently increases, suggesting better cost management or pricing strategies. Analyzing such trends provides valuable insights into the company's financial trajectory.

Theravance Biopharma, Inc. (TBPH) Debt vs. Equity Structure

Understanding how Theravance Biopharma, Inc. (TBPH) manages its debt and equity is crucial for investors. This involves analyzing the company's debt levels, key ratios, and financing activities to assess its financial strategy and stability. Let's delve into the specifics of TBPH's approach to balancing debt and equity.

As of the fiscal year 2024, Theravance Biopharma, Inc. (TBPH) demonstrates a strategic approach to managing its debt. The company’s financial reports offer insights into its debt composition, which includes both short-term and long-term obligations. Here’s a closer look at TBPH’s debt profile:

• Long-Term Debt: TBPH's long-term debt represents a significant portion of its capital structure.
• Short-Term Debt: The company also utilizes short-term debt to manage immediate financial needs and operational expenses.

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. For Theravance Biopharma, Inc. (TBPH), analyzing this ratio provides insights into its financial risk and capital structure. Here's what you need to know:

• A higher ratio suggests that the company relies more on debt, which can amplify both gains and losses.
• A lower ratio indicates a more conservative approach with greater reliance on equity.

To provide a clearer picture, the following table illustrates a hypothetical comparison of TBPH's debt-to-equity ratio against industry standards. Note that the figures provided are examples and should be verified with the company's official financial statements for accuracy.

Recent financing activities, such as debt issuances or refinancing, can significantly impact a company's financial health. For Theravance Biopharma, Inc. (TBPH), these activities are essential to monitor. Here’s why:

• Debt Issuances: New debt can provide capital for growth initiatives but also increases financial obligations.
• Credit Ratings: Changes in credit ratings can affect borrowing costs and investor confidence.
• Refinancing: Strategic refinancing can lower interest rates and extend debt maturity, improving cash flow.

Balancing debt and equity is a strategic decision that reflects a company's financial philosophy and growth prospects. Theravance Biopharma, Inc. (TBPH) must carefully weigh the advantages and disadvantages of each. Here’s how the company navigates this balance:

• Debt can offer tax advantages and doesn't dilute ownership, but it increases financial risk.
• Equity financing strengthens the balance sheet but dilutes existing shareholders' ownership.

For additional insights into Theravance Biopharma, Inc. (TBPH) financial strategies, see Breaking Down Theravance Biopharma, Inc. (TBPH) Financial Health: Key Insights for Investors.

Theravance Biopharma, Inc. (TBPH) Liquidity and Solvency

Assessing Theravance Biopharma, Inc.'s (TBPH) liquidity involves examining key financial ratios and statements to understand its ability to meet short-term obligations. Here's a breakdown:

Current and Quick Ratios: These ratios provide insights into TBPH's ability to cover its current liabilities with its current assets. A higher ratio generally indicates better liquidity. For the fiscal year 2024, these ratios are crucial indicators of TBPH's short-term financial health.

Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand how TBPH manages its short-term resources. An increasing working capital balance typically suggests improved liquidity, while a decreasing balance may raise concerns.

Cash Flow Statements Overview:

The cash flow statement is divided into three main sections:

• Operating Cash Flow: This reflects the cash generated from TBPH's core business activities. Positive operating cash flow is a sign of a healthy business.
• Investing Cash Flow: This includes cash spent on investments, such as property, plant, and equipment (PP&E). It can also include proceeds from the sale of assets.
• Financing Cash Flow: This section shows cash flow related to debt, equity, and dividends. It indicates how TBPH is funding its operations and returning value to shareholders.

Analyzing these cash flow trends provides a comprehensive view of TBPH's liquidity position.

Potential Liquidity Concerns or Strengths:

Based on the 2024 financial data, any significant changes in these metrics need to be carefully evaluated. For example:

• A sharp decline in the current ratio might indicate liquidity issues.
• Consistently negative operating cash flow could be a red flag.
• However, strong positive trends in working capital and operating cash flow would suggest a solid liquidity position.

For further insights into Theravance Biopharma, Inc.'s (TBPH) mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Theravance Biopharma, Inc. (TBPH).

Theravance Biopharma, Inc. (TBPH) Valuation Analysis

Assessing whether Theravance Biopharma, Inc. (TBPH) is overvalued or undervalued requires a look at several key financial metrics. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus on stock valuation.

Here's a breakdown of these elements based on the latest available data:

Valuation Ratios:

• P/E Ratio: As of April 2025, Theravance Biopharma's P/E ratio is -7.59. A negative P/E ratio indicates that the company is currently not profitable.
• P/B Ratio: The price-to-book (P/B) ratio is 2.62 as of December 2024.
• EV/EBITDA: The EV/EBITDA ratio is -9.88. A negative EV/EBITDA ratio can suggest that the company has negative EBITDA, which typically means it is not generating profit from its operations.

Stock Price Trends:

Recent stock performance (as of early April 2025):

• Current price: Around $8.38 to $9.53.
• 52-Week Range: The data mentions that the current share price of $8.93 (as of April 1, 2025) is below the 52-week high and above the 52-week low.

Dividend Yield and Payout Ratios:

• Dividend Yield: Theravance Biopharma's dividend yield is 0% as of April 2025.

Analyst Consensus:

• Rating: The analyst consensus is a 'Moderate Buy'.
• Price Target: The average price target is $12.33.

Here is a summary of analyst ratings for Theravance Biopharma, Inc. (TBPH):

Analyst Ratings:

Additional Ratios and Financial Health Indicators (December 2024):

• Current Ratio: 5.02
• Quick Ratio: 5.02
• Debt-to-Equity Ratio: 0.28
• Gross Profit Margin: 100.00%
• Operating Profit Margin: -72.92%
• Return on Assets (ROA): -15.93%

Navigate Theravance Biopharma's financial landscape with insights into its Mission Statement, Vision, & Core Values of Theravance Biopharma, Inc. (TBPH).

Theravance Biopharma, Inc. (TBPH) Risk Factors

Theravance Biopharma, Inc. (TBPH) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges, external market pressures, and regulatory hurdles. Understanding these factors is crucial for investors assessing the company’s long-term viability.

Industry Competition: The biopharmaceutical industry is intensely competitive. Theravance Biopharma, Inc. (TBPH) competes with other pharmaceutical companies, biotechnology companies, academic institutions, and other research organizations for, among other things: personnel; collaborative arrangements; licenses to intellectual property; and clinical trial patients. Many of these competitors have substantially greater financial, technical and other resources than Theravance Biopharma, Inc. (TBPH) does.

Regulatory Changes: Pharmaceutical companies operate under strict regulatory environments. Changes in regulations can affect the approval process for new drugs, the marketing of existing drugs, and reimbursement policies. Theravance Biopharma, Inc. (TBPH) must navigate these complexities to maintain compliance and market access.

Market Conditions: Broader economic trends and market conditions can also influence Theravance Biopharma, Inc. (TBPH)'s financial performance. Factors such as changes in healthcare spending, shifts in payer mix, and overall investor sentiment can impact the demand for its products and its ability to raise capital.

Operational, financial, and strategic risks are often detailed in the company's earnings reports and filings. These include:

• Clinical Trial Risks: The development of new drugs is inherently risky. Clinical trials may fail to demonstrate efficacy or reveal unexpected safety issues, leading to delays or termination of development programs.
• Commercialization Risks: Even if a drug is approved, successful commercialization is not guaranteed. Factors such as market acceptance, pricing pressures, and competition can affect sales and profitability.
• Financial Risks: Theravance Biopharma, Inc. (TBPH) may face financial risks such as the need to raise additional capital to fund its operations, fluctuations in currency exchange rates, and the potential for impairment of its assets.

Mitigation strategies are crucial for managing these risks. While specific plans may vary, common strategies include:

• Diversification of Pipeline: Developing a portfolio of drug candidates targeting different indications can reduce the impact of failure in any one program.
• Strategic Partnerships: Collaborating with other companies can provide access to additional resources, expertise, and markets.
• Cost Management: Implementing cost-control measures can help improve financial performance and reduce the need for external funding.

Here are some of the risks that Theravance Biopharma, Inc. (TBPH) highlights in its 2024 report:

For further insights into Theravance Biopharma, Inc. (TBPH)'s investor profile, consider reading Exploring Theravance Biopharma, Inc. (TBPH) Investor Profile: Who’s Buying and Why?.

Theravance Biopharma, Inc. (TBPH) Growth Opportunities

Theravance Biopharma, Inc. (TBPH) is poised for future growth driven by several key factors, including product innovation, strategic partnerships, and market expansion. These elements collectively contribute to the company's potential for increased revenue and earnings.

Key growth drivers for Theravance Biopharma, Inc. (TBPH) include:

• Product Innovations: Focus on developing and commercializing innovative therapies.
• Market Expansion: Expanding into new geographical markets and therapeutic areas.
• Strategic Acquisitions: Leveraging strategic acquisitions to broaden the product portfolio and pipeline.

Future revenue growth projections and earnings estimates for Theravance Biopharma, Inc. (TBPH) are contingent upon the successful development and commercialization of its pipeline products. Analysts' estimates vary, but generally, there is an expectation of steady growth as key products advance through clinical trials and regulatory approval processes.

Strategic initiatives and partnerships play a crucial role in driving Theravance Biopharma, Inc. (TBPH)'s future growth. Collaborations with other pharmaceutical companies and research institutions can accelerate the development and commercialization of new therapies. For instance, partnerships focused on specific therapeutic areas can provide access to additional resources and expertise.

Theravance Biopharma, Inc. (TBPH) possesses several competitive advantages that position it for growth:

• Proprietary Technology Platforms: Utilizing advanced technology platforms to discover and develop novel therapies.
• Strong Intellectual Property Portfolio: Maintaining a robust intellectual property portfolio to protect its products and innovations.
• Experienced Management Team: An experienced management team with a track record of success in the pharmaceutical industry.

For more detailed insights into Theravance Biopharma, Inc. (TBPH)'s financial health, you can explore: Breaking Down Theravance Biopharma, Inc. (TBPH) Financial Health: Key Insights for Investors.