Analysts Slash Price Targets After Theravance's Failed Ulcerative Colitis Study
- Analysts have lowered the price target and downgraded Theravance Biopharma Inc (NASDAQ: TBPH) after disappointing ulcerative colitis Phase 2 trial data.
- Related: Theravance Stock Plunges As JAK Inhibitor Flops Ulcerative Colitis Study
- Cowen downgraded Theravance Biopharma to Market Perform from Outperform with a price target of $14, down from $42. Following the failure in ulcerative colitis, izencitinib "appears to have little future," analyst Marc Frahm tells investors.
- JAK inhibitors like izencitinib have mixed results in Crohn's disease, says Frahm, who sees little chance that Theravance's Phase 2 study is expected to succeed around year-end.
- SVB Leerink lowered the firm's price target to $29 from $37 and kept an Outperform rating.
- Analyst Geoffrey Porges believes this program appears to have no future and has no confidence that it will benefit Crohn's disease or the continuing follow-up observations in ulcerative colitis (UC).
- Needham cut the price target to $18 from $32, with a Buy rating. The UC outcome is a "clear disappointment," but there is no read-through to the ampreloxetine Phase 3 neurogenic orthostatic hypotension results expected in Q3.
- The current levels on Theravance offer favorable risk/reward ahead of the readout, analyst Joseph Stringer tells investors.
- H.C. Wainwright also lowered the price target to $21 from $32 and reiterated a Buy rating. While it seems less likely that Janssen will opt-in, even without the $200M milestone, Theravance's current cash should be sufficient until 2023, writes analyst Douglas Tsao.
- BofA lowered the price target to $14 from $20 and reiterated an Underperform rating.
- Analyst Tazeen Ahmad tells investors that the failure potentially reads through to the upcoming Crohn's disease readout.
- Baird slashed the price target to $10 from $20 and kept a Neutral rating.
- Analyst Brian Skorney said that the failed Phase 2 trial in ulcerative colitis is a death blow to the program.
- Price Action: TBPH shares are trading down 33.24% at $9.46 in the market on the last check Tuesday.
Latest Ratings for TBPH
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Mar 2022 | Morgan Stanley | Maintains | Underweight | |
| Feb 2022 | HC Wainwright & Co. | Maintains | Buy | |
| Nov 2021 | JP Morgan | Upgrades | Underweight | Neutral |
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