Theravance Biopharma, Inc. (NASDAQ:TBPH) Q2 2023 Earnings Call Transcript

Rick Winningham: Yes, to add just a bit more on drivers of sales growth, and Rhonda talked about this during her section. If you really look at the sales right now, a nebulized long-acting beta agonist, which are generic and current GOLD guidelines and then the fact that nearly 50% of our Phase 3 program had concomitant use of either a beta agonist or beta agonist plus inhaled corticosteroid. The use of the YUPELRI with a nebulized long-acting beta agonist, that patients adhering to GOLD guidelines and physicians adhering to GOLD guidelines can serve a significant driver of revenue growth for us going forward with YUPELRI. And that’s setting aside, the opportunity Rhonda spoke about with short-acting nebulized medications that are currently inappropriately being used as maintenance therapy and then any lift that we can get from the PIFR-2 study should be positive.

David Risinger: Got it. Thank you, Rick.

Rick Winningham: Yes. Next question operator?

Operator: Our next question comes from the line of Douglas Tsao from H.C. Wainwright. Your question, please.

Douglas Tsao: Hi, good afternoon. Thanks for taking my questions. Just starting with — as a follow-up to the last one in terms of how we should think about your share of the collaboration revenue versus your sort of the implied revenue share. I think you said that it’s been about $5 million to $6 million on a quarterly basis. Should we think about it in terms of absolute dollars? Or does it come a point where we should just think about it as a certain percent change, and over time, should that sort of narrow as we get increased profitability in that business through economies of scale or leverage in the business?

Aziz Sawaf: Yes. Thanks, Doug. So I would — as I mentioned to David a second ago, it’s from an absolute basis. So that $5 million or $6 million should stay consistent. In other words, if YUPELRI sales go up $100 million, making up an extreme example, the gap between 35% of the sales and the collaboration revenue will still be $5 million. Now the percentage from a relative basis, it will be very minor, but the nominal absolute number will still be 5%. So when YUPELRI starts to grow more materially in the future, this gap will be less relevant, right? It will be from a percentage standpoint or a relative standpoint to be somewhat unmeaningful. Does that help, Doug?

Douglas Tsao: Yes, that does. And can you provide just a comment in terms of how YUPELRI is doing from a gross to net standpoint right now?

Rick Winningham: I think that — go ahead, Aziz.

Aziz Sawaf: Yes. So we can’t — and I’ll pass it on to Rhonda for additional commentary here. But we don’t comment on gross to net. That’s something that Viatris manages. But I think in terms of ASP, I think it’s safe to say that Viatris has done a nice job keeping ASP relatively stable over time, and we have not seen any material changes to the gross to net over the — you have typical things, small things here and there. But overall, the gross to net has been pretty steady quarter-over-quarter, and we’ve been pretty — we’ve been very happy with the way in which Viatris has managed ASP. So Rhonda, do you have any additional comments there?

Rhonda Farnum: No, I think well said, ASP is very healthy for this product.

Douglas Tsao: And then just one final question. Now that the PIFR-2 readout is really sort of getting close, how should we think, if we get the outcome that we expect to get — how should we think about that? Or how — what’s the sort of the road map for getting the full benefit of that commercially? Thank you.

Rick Winningham: Rhonda, do you want to take that?