Theravance Biopharma, Inc. (NASDAQ:TBPH) Q4 2022 Earnings Call Transcript

Rhonda Farnum: Yes. And as I commented during the earnings script, we have already seen a return to growth in the first couple of months of the year. So, we’ll continue to obviously continue to work through those accounts where we know there are opportunities and we believe with the prior success that we have the ability to continue to capture that LAMA Choice position.

Douglas Tsao: Okay great. Thank you very much.

Operator: And our next question comes from the line of Eva Privitera from Cowen. Your question please.

Eva Privitera: Hi. Congrats on the quarter and thanks for taking my question. So, with the discontinuation of R&D and the expectation that YUPELRI will start generating meaningful cash. How are you approaching capital allocation after the $325 million share repurchase is complete? Should we expect accumulated cash balances to be returned? And if so, would this be additional share repurchase? Or can we expect something like a quarterly dividend in the future?

Rick Winningham: Well, I think — thanks for the question. I think as Aziz pointed out, we’re going to execute on the $325 million capital return if we can after looking at what’s in front of us, if we can increase the returns to shareholders and the whatever form it might take, then we will do that. Obviously, we’ve got — we’ll still continue to spend on YUPELRI and a bit on ampreloxetine, but the — we’ll certainly look at returning capital as we can in excess of the $325 million.

Eva Privitera: Okay. Thank you.

Operator: And our next question comes from the line of William Humphrey from Morgan Stanley. Your question please.

Vikram Purohit: This is Will on for Vikram. Thanks for taking my question. Back on YUPELRI, what’s your latest thinking on if positive PIFR-2 data, is going to be increasing sales or share? And if so, how significant of an increase, particularly in that in-hospital share? Do you see that driving? Or I guess, how do you see that influencing prescriber behaviour?

Rhonda Farnum: Thanks all for the question. In looking at the hospital component specifically, having the ability to be even more definitive on the appropriate patient as well as the role relative to handheld choice in the inpatient environment a positive PIFR-2 study would certainly help to improve that messaging and pull through. Similarly, you would expect the same to be able to affect the community or outpatient volume. As particularly in that sense, helping clinicians understand not only the importance of reassessing a patient’s ability to utilize a handheld device versus what can be offered with the nebulized therapy, definitely contributing to a competitive advantage in that particular situation.

Rick Winningham: I think the real opportunity here, Will, with PIFR, as Rhonda indicates, it’s really growing beyond what is considered the traditional nebulized market and making progress growing beyond the traditional nebulize market, which is about one in 10 COPD patients to something greater than that while the foothold would be in the hospital, the majority of the volume will be in the outpatient. And I think that’s the real opportunity with the PIFR program.

Vikram Purohit: Okay. That’s very helpful. Thanks very much.

Operator: And our next question comes from the line of Liisa Bayko from Evercore ISI. Your question please.

Liisa Bayko: I just wanted to ask a couple of questions about the CYPRESS study for ampreloxetine in MSA. First of all, what are your powering assumptions for this study design as it relates to the OSHA score?

Rick Graham: Yes. Liisa, this is Rick Graham. We don’t disclose powering assumptions, but just assume that it is traditionally powered as a traditional Phase III study. I think 1 of the things that I can point to is if you look at our data from the 170 study, in the MSA patients. We had a statistically significant outcome in the 38 MSA patients using this OHSA composite. So that should give you a sense of what we’re looking at here.

Liisa Bayko: And how does that — okay, I see what you’re saying there. Okay, fine. And then can you remind us of the exclusivity for ampreloxetine?