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.