Things are about to getting very exciting for existing shareholders of biopharmaceutical company Theravance (NASDAQ: THRX ) , with the company announcing its first-quarter results after the closing bell and setting a record date of May 15 for its split into two separate trading entities.
For the quarter, Theravance recorded net revenue of just $0.2 million, down from $1.3 million in the prior-year period. Vibativ product sales totaled $0.9 million and royalty revenue from the sale of Relvar and Breo Ellipta totaled $0.7 million. However, revenue was also offset by amortized expenses tied to intangible assets.
As you might have guessed, with a full lineup of clinical studies ongoing, Theravance's research and development and selling, general, and administrative expenses soared. R&D expenses rose to $43.4 million from $26.4 million in the prior year, while SG&A costs more than doubled to $22.8 million from $8.3 million.
Net loss for the quarter widened by 81% to $67.7 million, or $0.62 per share from $37.4 million, or $0.39 per share in the previous year.
Two additional developments dominated Theravance's report.
First, given Thervance's strong cash position of $430.8 million as of the end of the quarter, it plans to initiate a $0.25-per-quarter cash dividend. This would place a projected forward yield of 3.7% on Theravance based on today's closing price.
Secondly, Theravance set the course for its upcoming split into two companies: Royalty Management Co., consisting of its FDA-approved COPD assets and other collaborations under partnership with GlaxoSmithKline (NYSE: GSK ) , and Theravance BioPharma, consisting of every other therapeutic indication in its pipeline. Shareholders on record as of May 15 will receive Theravance BioPharma shares in the form of dividend by June 2.