Theravance: income investors should watch this pharmaceutical stock

Theravance: income investors should watch this pharmaceutical stock

Research  these Stocks on Kapitall’s Playground Now

research now

It's been a rough year for pharmaceutical company Theravance, but the year ahead could be brighter.

At first glance, Theravance's (THRX) 44 percent drop in the past year is frightening, but this could be set to change. 
The company is in partnership with GlaxoSmithKline (GSK) to launch new drugs treating respiratory diseases, and share prices are now up close to 46 percent in the past month. It is possible that the stock has even more upside.

Weak year

Theravance's decline is due mostly to the fact that it spun off its R&D division, now Theravance Biopharma (TBPH), in June. This leaves Theravance proper (THRX) as a royalty company that will pay income investors a dividend of $0.25 per share this quarter, with an ex-dividend date of March 12. Theravance has the cash flow to support the dividend, because the company holds late-stage respiratory assets. Together with GSK, the firm is growing sales of Relvar/Breo Ellipta, earning $10.5 million in royalties on net sales of these products in Q4 2014, a 164 percent increase from the previous quarter.

Theravance Biopharma (TBPH) is a biopharmaceutical research and drug development company, fitting for investors interested in the volatility associated with companies researching new drugs. The stock's rebound is impressive: as of February 24 at 2:30pm, the stock is up 54.5 percent from its 52-week low in December.

Strong quarter

Investors should consider both Theravance Biopharma and Theravance, but for different reasons. Theravance’s dividend is supported by growing revenue. In its fourth quarter, the firm grew revenues by 387 percent, to $7.3 million. Expenses fell $7.2 million while losses per share shrunk by 75 percent. For the full fiscal 2014 year, Theravance’s revenue grew to $8.4 million.

On the company's fourth quarter earnings conference call, Theravance CEO Mike Aguiar noted the firm's disappointment in the sales derived from its collaboration with GSK. Despite last year’s headwinds, upcoming regulatory and clinical events should prove positive for Theravance’s BREO product. Sales for BREO, which treats COPD (chronic obstructive pulmonary disease) and asthma, should improve in 2015. It was approved in 58 countries as at December 31, 2014. Net sales of the product improved by 142 percent quarter-over-quarter in Q4.

Written by Chris Lau.

Disclosure: Author owns shares of Theravance.

Click on the interactive chart to view data over time. 


1. GlaxoSmithKline plc (GSK, Earnings, Analysts, Financials): Engages in the discovery, development, manufacture, and marketing of pharmaceutical products, over the counter (OTC) medicines, and health-related consumer products worldwide. Market cap at $114.55B, most recent closing price at $42.29.



2. Theravance Biopharma Inc. (TBPH, Earnings, Analysts, Financials): Focuses on the discovery, development, and commercialization of small molecule medicines primarily for the therapeutic areas of bacterial infections, central nervous system/pain, respiratory disease, and gastrointestinal motility dysfunction. Market cap at $664.90M, most recent closing price at $20.63.



3. Theravance Inc. (THRX, Earnings, Analysts, Financials): Engages in the discovery, development, and commercialization of small molecule medicines for various therapeutic areas, including respiratory disease, bacterial infections, and central nervous system (CNS)/pain. Market cap at $2.03B, most recent closing price at $17.48.



(List compiled by Chris Lau. Monthly returns data sourced from Zacks Investment Research. All other data sourced from FINVIZ.)


Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings


© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC – a FINRA/SIPC member.


8 responses to “Theravance: income investors should watch this pharmaceutical stock”

  1. nice says:

    Have you have been the victim of an injury caused by someone’s negligent actions? Then finding apersonal injury lawyer is the next step you need to take towards receiving the financial compensation you deserve.advancedlawyer

  2. nice says:

    The actual veterinary industry keeps growing, andyou wind up spending lots of money on your dog with the biggest share likely to healthcare costs. With a lot money being put aside for healthcare expenses, only a part of pet owners decide to have dog insurance.dogtrainingphoenix

  3. nice says:

    The particular veterinary industry is growing, andyou find yourself spending big money on your furry friend with the greatest share planning to healthcare expenditures. With a great deal money being reserve for health-related expenses, only half pet owners elect to have family pet insurance.kaidog

  4. nice says:

    Your veterinary industry keeps growing, andyou turn out spending a lot of cash on your canine friend with the most important share gonna healthcare charges. With much money being schedule for health care expenses, only a small part of pet owners tend to have puppy insurance.yourpetsplace

  5. James Baldwin says:


  6. Doris M. says:

    Numerous pharmaceutical company are making the best quality and trusted formulated medicine for the recovery of disease. That is well informed information about the medicine hope that will helpful article for the common person and others as well.

  7. nice post very interesting post and users have nice experience by reading these posts.

Leave a Reply

Your email address will not be published. Required fields are marked *

  • See Most Recent Articles