Theravance Biopharma, Inc. announced strategic actions to focus on leveraging its expertise in developing and commercializing respiratory therapeutics in order to maximize shareholder value. These changes follow a comprehensive scenario planning exercise led by the Board and Management with the assistance of outside advisors. In order to implement this plan, Theravance Biopharma will immediately initiate a significant cost reduction program:
- Headcount will be reduced by approximately 75%, an estimated 270 positions1, with approximately 75% of the reduction expected to be completed in November 2021 and the remainder to be completed in February 2022
- Total annualized operating expense2 savings of approximately $165 million in 2022 compared with the Company's updated 2021 Financial Guidance below
By implementing these strategic actions, Theravance Biopharma expects to become sustainably cash flow positive beginning in the second half of 2022.
The go-forward organization will build on the Company's proven track record of innovation leading to several approved medicines for COPD and asthma, including YUPELRI®, launched in 2019, which was discovered and developed by the Company and is now commercialized in partnership with Viatris Inc., and TRELEGY, a respiratory medicine developed by Glaxo Group Limited in collaboration with the Company's predecessor, Theravance, Inc.
TRELEGY is currently expected to generate global peak sales of approximately $3.0 billion annually3. YUPELRI remains early in its product lifecycle, has demonstrated quarter-over-quarter market share growth, and has the potential to generate US peak sales exceeding $400 million4. Theravance Biopharma believes the strong and growing cash flows of YUPELRI and TRELEGY will generate significant value creation opportunities for the Company's shareholders
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