Investing.com - BTIG lowered its price target on Theravance Biopharma (NASDAQ:TBPH) to $21 from $40 while maintaining a Buy rating following the company's Phase 3 CYPRESS trial miss.
Analyst Julian Harrison removed ampreloxetine from the firm's financial model after the trial failure. The stock has traded within BTIG's previewed expectations for the outcome. Shares currently trade at $14, down from a previous close of $18.25, though the stock had delivered a 107% return over the past year before this setback.
BTIG believes upside potential relative to the current price could be supported by Yupelri and residual Trelegy rights alone. Management noted additional analyses may be conducted as part of the wind-down that could support further regulatory discussions. According to InvestingPro data, the company holds more cash than debt on its balance sheet, providing financial flexibility during this transition. The platform's Fair Value analysis suggests the stock is fairly valued at current levels, with analyst targets ranging from $13 to $42.
The firm stated there is no clear path forward for ampreloxetine today. The price target reduction reflects the removal of the drug candidate from BTIG's valuation model.
BTIG maintained its Buy rating on the stock despite the significant price target cut. The firm's analysis focuses on the company's remaining assets and revenue streams.
In other recent news, Theravance Biopharma announced that its Phase 3 CYPRESS study of ampreloxetine for treating neurogenic orthostatic hypotension in patients with multiple system atrophy did not meet its primary endpoint. Following this outcome, the company decided to wind down the ampreloxetine program and plans to cut its operating expenses by approximately 60%, which translates to about $70 million in savings. This restructuring will involve eliminating the research and development function and reducing general and administrative staff by about 50%, affecting roughly half of the workforce. Despite this setback, H.C. Wainwright raised its price target for Theravance Biopharma to $27, maintaining a Buy rating. Additionally, Oppenheimer initiated coverage with an Outperform rating and a $27 price target, citing the potential of the ampreloxetine treatment. The firm noted the upcoming Phase 3 readout in the first quarter of 2026 as a significant catalyst with favorable risk/reward dynamics, assigning a 50% probability of success. Theravance Biopharma also announced plans to host a virtual key opinion leader investor event focused on ampreloxetine, with materials made available through a Securities and Exchange Commission filing.