Leerink Swann Reiterates a Buy Rating on Theravance Biopharma

By Carrie Williams

Leerink Swann analyst Geoff Porges reiterated a Buy rating on Theravance Biopharma (NASDAQ: TBPH) today and set a price target of $33. The company’s shares opened today at $27.24.

Porges commented:

“We continue to view advancement of the JAKs as the most significant value opportunity for the stock. Both are locally acting (intestine only) pan-JAK kinase inhibitors in development for ulcerative colitis (UC) that could potentially reduce the immunosuppressive liabilities carried by other drugs in the JAK class. The first of these drugs, TD-1473, also has activity against TIK2 that may be preferential for potential label expansions into Crohn’s disease and other underserved patient sub-populations with inflammatory bowel disease (IBD). TD-1473 is now in a phase Ib trial in ulcerative colitis and data are expected in mid-2017. TBPH has a preference for bringing two drugs forward into early clinical trials to reduce the risk of drug development, and to match one or other of the drugs to the requirements of specific indications and sub-populations. The second JAK, TD-3504, is a prodrug of PFE’s (MP) Xeljanz (tofacitinib). Like Xeljanz, TD-3504 is a pan-JAK inhibitor with minimal TIK2 inhibition, but management stated the failure of Xeljanz in Crohn’s may have been related to the narrow therapeutic window for the drug in that indication, which should be larger for the locally acting TD-3504. TD-3504 is in a phase Ia healthy subject safety and PK/PD study, which should have data in 2017, and will move into a phase 1b in UC patients in early 2017.”

According to TipRanks.com, Porges is ranked 0 out of 5 stars with an average return of -6.1% and a 11.8% success rate. Porges covers the Healthcare sector, focusing on stocks such as Alexion Pharmaceuticals, Johnson & Johnson, and Gilead Sciences.

Currently, the analyst consensus on Theravance Biopharma is Moderate Buy and the average price target is $24, representing a -11.9% downside.

In a report issued on November 3, Piper Jaffray also reiterated a Buy rating on the stock with a $42 price target.

Based on Theravance Biopharma’s latest earnings report for the quarter ending June 30, the company posted quarterly revenue of $5.47 million and GAAP net loss of -$47,225,000. In comparison, last year the company earned revenue of $10.7 million and had a GAAP net loss of -$47,314,000.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2016, Brett Haumann, the SVP, Clinical Development of TBPH sold 4,491 shares for a total of $125,703.

Theravance Biopharma, Inc. operates as a biopharmaceutical company, which focuses on the discovery, development, and commercialization of small molecule medicines. It operates through the following geographical segments: the Unites States, Europe, Asia, and Other. Its products include telavancin under the VIBATIV brand, revefenacin under the TD 4208 brand, and neprilysin. The company was founded on July 2013 and is headquartered in George Town, Cayman Islands.