Theravance Biopharma stock plummets due to trial failure

LootboxPhobia · 2026-03-03T15:55:11+00:00

Theravance Biopharma's stock price dropped 29% after its Phase 3 study failed to demonstrate the effectiveness of ampreloxetine in patients with multiple system atrophy. The company has decided to terminate the project and undergo organizational restructuring, which is expected to save approximately $70 million, while also evaluating the possibility of selling the company. It is projected to generate $60 million to $70 million in cash flow by 2026.

LootboxPhobia

2026-03-03 15:55:11

Abstract generation in progress

Investing.com – Theravance Biopharma, Inc. (NASDAQ: TBPH) stock fell 29% on Tuesday after the company reported that its Phase 3 CYPRESS study of ampreloxetine for symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy failed to meet its primary endpoint.

The study did not show a statistically significant change in the composite score of orthostatic hypotension symptoms at week 8 of the double-blind, randomized withdrawal period. Similar trends were observed in secondary endpoints. As a result, Theravance Biopharma has decided to terminate the ampreloxetine program.

The company’s strategic review committee is accelerating its evaluation of various options to maximize shareholder value, including the possible sale of the company. The committee has been working with its independent financial advisor Lazard since its formation in 2024.

Theravance Biopharma announced a restructuring plan, which will reduce its cost base by approximately 60%, or about $70 million, compared to its initial 2025 projected expenses of approximately $110 million. The restructuring will impact about 50% of the total workforce and involve the termination of R&D functions as well as significant cuts to general and administrative functions. Full operational cost savings are expected to be realized by the third quarter of 2026.

The company expects to generate an annualized cash flow of approximately $60 million to $70 million starting in the third quarter of 2026. This forecast includes estimated operating income of $45 million to $55 million and expected interest and other income, excluding potential revenue from the $100 million milestone related to TRELEGY.

Theravance Biopharma reported cash of $326.5 million as of December 31, 2025, with no debt. The company expects cash of about $400 million by the end of the first quarter of 2026, including milestone payments received in 2025.

For fiscal year 2025, the company’s inhaled bronchodilator YUPELRI for chronic obstructive pulmonary disease (COPD) reported US net sales of $266.6 million, a 12% increase year-over-year.

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