Theravance Biopharma Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Douglas Tsao - H.C. Wainwright - Analyst : Hi, good afternoon. Thanks for taking the questions and congrats on the progress. Maybe as a starting point, I guess I would like to hear a little bit more from Rhonda about what really drove so much of the success on the hospital channel this particular quarter. I mean was it just sort of a follow through on some of the execution or sort of some of the initiatives you've had ongoing or was there anything in particular that led to this real sort of step up in performance? Rhonda Farnum - Theravance Biopharma Inc - Senior Vice President - Commercial and Medical Affairs, Chief Business Officer Thanks, Doug. Really always appreciate your questions. On the hospital front, the team is executing the strategy very clearly and to see the wins in larger systems and that these systems are now more frequently, not always, but more frequently coming with therapeutic interchange as part of the initial formulary approval that brings additional volume. As I think you already appreciate, you will see a doubling of market share in those accounts that have a therapeutic interchange versus a conventional formulary approval. So team is executing. They know where to go. They have a strategy of not only ensuring that concomitant use becomes adopted in protocols and then following on with that to ensure if there's opportunity for converting short-acting nebulized use to long-acting, that certainly follows through. So we're just very, very pleased with what our small team of 14 have been able to accomplish, particularly this last quarter.

Question: Douglas Tsao - H.C. Wainwright - Analyst : And then one final one for me if I can. I know you talked a lot about sort of improvement and a focus on the channel mix to improve the gross to net. And I think some of that improvement seems to have happened maybe faster than you expected. And I guess I'm just curious, sort of the trajectory we should expect to see on that front into 2025. Rhonda Farnum - Theravance Biopharma Inc - Senior Vice President - Commercial and Medical Affairs, Chief Business Officer Well, as we've commented in the past in partnership with Viatris, this not only starts with effective execution, but also ensuring there's contracting discipline along the way and effective pricing strategy. So we certainly did comment that it would take probably more into 2025 before you would see more right sighting of that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 26, 2025 / 10:00PM, TBPH.OQ - Q4 2024 Theravance Biopharma Inc Earnings Call But I think that strategy of pricing coupled with that improvement in channel mix, meaning getting to those higher margin volumes, pushing through or being pulled through, that's what's driving the improvement. And we're very pleased about it, obviously.

Question: Julian Harrison - BTIG - Analyst : Hi, good afternoon. Congrats on a very strong end to 2024 and for taking my questions ¡ thank you for taking my questions. It looks like 4Q was really a standout quarter on the hospital side, kind of related to the last questions asked. I'm wondering if you could comment on any follow through of that trajectory or trend you saw in 4Q into the first two months of 2025? Rhonda Farnum - Theravance Biopharma Inc - Senior Vice President - Commercial and Medical Affairs, Chief Business Officer Well,

Question: Julian Harrison - BTIG - Analyst : Okay. Great. Thank you. And then can you remind us of the next steps for YUPELRI in China? Are you just waiting for a regulatory decision there with your partner Viatris? Do you have an approximate sense of the timing of next steps too? Rhonda Farnum - Theravance Biopharma Inc - Senior Vice President - Commercial and Medical Affairs, Chief Business Officer Definitely. It's the waiting for the regulatory commentary back to the Viatris team and for planning assumptions. As we've stated in the past, that two-year window is what we typically would expect from time of submission to approval. So that's still what we're operating under.

Question: Julian Harrison - BTIG - Analyst : Excellent. That's helpful. And then finally, I'm just curious if you could talk more about your recent feedback from the FDA on ampreloxetine. Wondering if you could share specifically what spurred that interaction and can you talk and any more detail about what you received clarity on?

Question: Julian Harrison - BTIG - Analyst : Got it thank you that makes sense.

Question: David Risinger - Leerink Partners - Analyst : Yes. Thanks very much and thanks for all of the detail today and congrats on the fourth quarter performance. So I just had some basic sort of financial questions. So first, was there any channel stocking or any other anomalies that benefited the fourth quarter net revenue? Second, what percentage of YUPELRI sales are non-hospital sales dollars? Just wanted to understand, if hospital is like 90% of net sales of YUPELRI or 60% of net sales of YUPELRI, just wanted to understand that. And then third, could you just explain why the non-hospital sales dollars are trending down year-over-year. Thanks very much.

Question: David Risinger - Leerink Partners - Analyst : Yes, just trying to understand what percentage of YUPELRI sales dollars come from the non-hospital category, however you categorize it. And then

Question: David Risinger - Leerink Partners - Analyst : Oh, got it. Yes. That the ¡ to orient you, so the slide only discusses the hospital growth and volume of something like 49% and the company never

Question: David Risinger - Leerink Partners - Analyst : Got it. Thank you.

Question: David Risinger - Leerink Partners - Analyst : Got it. Thanks again.

Question: Marc Frahm - TD Cowen - Analyst : Hi, this is Alex on for Mark. Congrats on the quarter and thanks for taking my question. So just a couple on ampreloxetine first, what do you ultimately see as the bar for success for the CYPRESS readout? And then, assuming CYPRESS is positive, what would kind of be the scale of the commercial organization you need to kind of assemble to market the drug? And, will any of that build occur ahead of the data or is the potential OpEx increase entirely a 2026 story? Thanks.

Question: Marc Frahm - TD Cowen - Analyst : Got it. Thanks again.