Theravance Biopharma Reports $5.9 Million Net Loss and Announces Merger with Zymeworks

Theravance Biopharma, Inc. reported a net loss of $5.9 million for the second quarter of 2026, compared to a net income of $54.8 million in the same period last year. The company’s total revenues for the quarter were $20.7 million, a decrease of 21% from $26.2 million in the prior year, primarily due to the absence of licensing revenue, which had contributed $7.5 million in the previous year. Revenue from the Viatris collaboration agreement, however, increased by 11% to $20.7 million, driven by a 7% growth in YUPELRI net sales, reflecting strong customer demand.

In terms of expenses, Theravance reported total expenses of $29 million for the second quarter, slightly up from $28.9 million in the same period last year. The increase was attributed to restructuring expenses of $4 million related to a significant workforce reduction aimed at streamlining operations and aligning resources with its commercial focus on YUPELRI. The company has reduced its workforce by approximately 50%, resulting in expected annual cost savings of around $70 million starting in the second half of 2026.

Operationally, the company has been undergoing a strategic review process, culminating in a merger agreement with Zymeworks Inc. announced on June 28, 2026. Under the terms of the agreement, Theravance will be acquired for $17.00 per share in cash, along with contingent value rights tied to future sales of ampreloxetine. This merger is expected to close in the second half of 2026, subject to shareholder approval and regulatory conditions. The company’s cash, cash equivalents, and marketable securities totaled approximately $387.7 million as of June 30, 2026, which management believes will be sufficient to fund operations for at least the next twelve months.

The company’s restructuring and merger activities come in the wake of disappointing results from its ampreloxetine Phase 3 clinical study, which did not meet its primary endpoint. As a result, Theravance is winding down the CYPRESS program while continuing to explore regulatory and strategic opportunities related to the drug. The company’s focus remains on maximizing the value of its existing products, particularly YUPELRI, which is co-promoted with Viatris and has shown consistent demand in the market.

Looking ahead, Theravance Biopharma anticipates that the restructuring will lead to a significant reduction in operating expenses, allowing for a more streamlined approach to its commercial operations. The company is also focused on maintaining its market position for YUPELRI amidst increasing competition and evolving healthcare regulations. The successful completion of the merger with Zymeworks is expected to provide additional resources and strategic direction as the company navigates these challenges.