Theravance considers possible sale after drug trial setback

By Padmanabhan Ananthan

March 3 (Reuters) – Theravance Biopharma said on Tuesday its board is reviewing strategic alternatives, including a possible sale, after scrapping development of an experimental drug for a rare disorder, sending its shares down 25% in afternoon trading.

In a late-stage trial, the drug ampreloxetine failed to improve symptoms related to a sharp drop in blood pressure in patients with multiple system atrophy, a rare, progressive neurodegenerative disorder which has no FDA-approved treatments.

Theravance said the trial results still showed the drug had an effect on blood pressure-related measures, and it will do further analysis and consult outside experts to decide whether any further talks with regulators are warranted.

H.C. Wainwright analyst Douglas Tsao said he sees the ampreloxetine program as having only a “low‑probability” path forward.

Tsao added follow‑up data could show whether a specific group of patients may have benefited. But even if such a group emerges, Tsao noted that another trial would almost certainly be required.

Theravance said the restructuring will affect about 50% of its workforce and is expected to reduce operating expenses by about 60%, or about $70 million, with the full savings expected to be in place by the third quarter of 2026.

The company said it had $326.5 million in cash at the end of 2025, with no debt, and expects to have about $400 million by the end of the first quarter of 2026.

It will now focus on Yupelri, Theravance’s treatment for a lung condition known as chronic obstructive pulmonary disease, which the company said continues to grow and is protected by U.S. patents through 2039.

Yupelri’s net sales in 2025 were $266.6 million as recorded by its partner Viatris, up 12% from the prior year, while triggering a $25 million milestone.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Krishna Chandra Eluri)