Theravance Biopharma (NASDAQ:TBPH) on Thursday reported financial results for the fourth quarter and full year ended December 31, 2025, revealing a year of significant financial recovery tempered by a major strategic pivot.
The company reported fourth-quarter net income of $61 million, or $1.15 per share, a substantial increase from the net loss of $15.5 million in the prior-year period.
Full-year revenue reached $107.5 million, up from $64.4 million in 2024, resulting in a total annual net income of $105.9 million.
The 2025 performance was largely anchored by the continued commercial success of YUPELRI® (revefenacin).
U.S. net sales of the COPD treatment, recognized by partner Viatris, hit a record $266.6 million for the year, a 12% increase year-over-year.
This achievement triggered a $25 million sales-based milestone payment to Theravance.
Additionally, the company recognized a $50 million milestone from Royalty Pharma in the fourth quarter, triggered by GSK’s TRELEGY global net sales reaching approximately $3.9 billion.
Despite these financial gains, the quarter was overshadowed by the news that the Phase 3 CYPRESS study for ampreloxetine—the company's lead pipeline asset—did not meet its primary endpoint.
In response, Theravance announced an immediate and aggressive organizational restructuring.
The company is winding down its entire R&D division and reducing its General & Administrative (G&A) headcount by 50%, a move expected to impact roughly half of its total workforce.
This plan aims to slash operating expenses by 60%, targeting $60 million to $70 million in annualized cash flow starting in the third quarter of 2026.
Theravance enters 2026 with a robust cash position of $326.5 million and no debt, a balance expected to grow to approximately $400 million by the end of the first quarter following the receipt of its 2025 milestones.