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Investing.com – Theravance Biopharma stock (NASDAQ:TBPH) lost a fifth of its value in Wednesday’s premarket trading as its experimental hypotension drug ampreloxetine disappointed in a late-stage trial.
The stage-3 test results led the company to announce a massive cost-cutting exercise, the axe falling on the people associated with the drug. This will see 270 people being laid off, three-quarters of its workforce.
The company said it is turning its focus to develop and commercialize respiratory therapeutics. Theravance expects to become cash flow positive beginning in the second half of 2022, as the costs of developing ampreloxetine fall away.
The company’s R&D spend in the next financial year is pegged at $60 million at center of the range, less than one-third of its revised estimate of $185 million for the ongoing year. The current-year R&D spend was seen at $210 million at midpoint earlier.
