The other shoe drops for Theravance

After the failure of Theravance’s gut-selective Jak inhibitor izencitinib last month the company’s hopes hinged on getting a result with ampreloxetine in neurogenic orthostatic hypotension. Today the latter project was also revealed to be a dud, and the group has slashed its headcount and R&D efforts in response. Such an outcome was entirely predictable given unconvincing phase 1/2 ampreloxetine data, and a restructuring had also been foreseen by Leerink analysts. More surprisingly, Theravance does not seem to have learned its lesson: the group’s core assets now include the inhaled Jak inhibitor nezulcitinib, which is in development for acute lung injury despite recently failing a Covid-19 trial. More sensible, if unexciting, is a focus on the approved respiratory products Trelegy, on which Theravance receives royalties from Glaxosmithkline, and Yupelri, sold in partnership with Viatris. Theravance hopes that its streamlining will allow it to become “sustainably cash flow positive” by the second half of 2022, but many investors are not hanging around to find out. The company, already worth less than half of what it was at the start of the year, fell another 22% this morning.