Theravance Biopharma, Inc. (NASDAQ:TBPH) Q3 2023 Earnings Call Transcript

Rhonda Farnum: Yes. So Doug, as you recall, Q1 was definitely a high performance quarter for the hospital business. Certainly we had some situation associated with the challenges and short acting shortages that I think certainly contributed a bit to that. As well as what we typically experience in Q3 of each year seasonally is the lower kind of opportunity and what is reflected with reduction in exacerbations, reduction in hospital admissions, as well as even doctor appointments for these patients. It’s typically the lower of the year. But to look at the growth that certainly has returned within this quarter and seeing that build over two successful quarters at the beginning of the first half of the year, I’m very pleased to see the market share continue to grow.

This being built off of the continued acceptance and adoption of protocols and formulary approvals, both in systems as well as individual accounts that the team has been able to accomplish. So that continuing to contribute to this ongoing build across the hospital business for the team. So that contributing to the 16.1% market share.

Douglas Tsao: Okay. And as a follow up, when we look at the retail side, and I know that’s not necessarily what you have as much focus on, we saw really nice quarter-on-quarter growth at 9%. We did see a slight decline in terms of the new to product Rx. So just to help us understand, you know, or put some context around that trend.

Rhonda Farnum: Yes. So, the refill certainly continuing to occur for those patients that had already received or had been prescribed in the prior quarter. So the TRx is continuing to build, which I think you already appreciate that growth. But looking at the metric or the indicator associated with new to product, seeing that typically to be lesser for most respiratory products, as I mentioned earlier, Q3 is typically for respiratory, the lower quarter.

Douglas Tsao: Okay. And Rhonda, are most of the retail scripts originating from a hospitalization still?

Rhonda Farnum: We still see a majority of patients that are exposed to YUPELRI during in their inpatient stay, which I’ll remind you is for, a shorter persistency. It averages around three and a half days per stay. And those patients exiting the majority are leaving with a script in hand to be prescribed in the outpatient or maintenance care setting.

Douglas Tsao: Okay. Great. Thank you so much.

Operator: Thank you. [Operator Instructions] One moment for questions. Our next question comes from Eva Xia Privitera with TD Cowen. You may proceed.

Eva Xia Privitera: Hi, congrats on the great quarter. And thanks for taking our questions. I have a question about YUPELRI. Can you maybe talk about YUPELRI’s growth trends in the DME segment versus retail, since it’s the larger portion? And, how are you and your partners thinking about growth in that segment?

Rhonda Farnum: Yes. So, as I reflected in the call, we have, the challenge with the particular view not being real time for DME. It’s due to the adjudication process associated with Medicare Part B scripts. And that lags approximately a quarter. So, the best I can reflect on performance for you in its totality is in contrast to Q2 performance. So, the DME space grew approximately 6% in Q2. And I’ll contrast that to what we reported in the retail space, which was 8% for Q2. So, unfortunately, I don’t have the latest DME view to offer, other than we continue to focus and ensure that for patients that are being supported and filled through that channel, get the best possible support to ensure that that progress is moving as quickly as possible and equating to the highest level of fulfilment, regardless of where they choose to go, whether that’s DME or conventional retail.

Eva Xia Privitera: Thanks, Rhonda. And a follow-up question on the PIFR-2 trial. Assuming that the trial is successful, since these patients are already on label, would publication of the data be gating to driving uptake? And what would be the potential timeline for publication?