By Connor Hart

Theravance Biopharma said it will cut about half of its workforce, or about 49 jobs, and accelerate an ongoing review of strategic alternatives, while winding down a late-stage program that missed its primary endpoint in a recent trial.

The biopharmaceutical company said Tuesday that its restructuring includes the complete wind down of its research and development organization, as well as a roughly 50% decrease in general and administrative employees. It expects to incur up to $7 million in one-time cash severance costs related to the layoffs.

Theravance employed 97 workers as of Dec. 31, 2024, according to the most recent headcount available in Securities and Exchange Commission filings.

The restructuring aims to streamline costs and realign resources with its commercial focuses. It is projected to reduce operating expenses by about $70 million, fully materialized by the third quarter, Theravance said.

Shares sank 28%, to $13.73, in premarket trading.

The restructuring comes after a late-stage study of Theravance's drug, ampreloxetine, didn't meet its primary endpoint in patients with symptomatic neurogenic orthostatic hypotension due to multiple system atrophy, a rare disorder defined by sudden and drastic drops in blood pressure.

As a result, Theravance said it would wind down the ampreloxetine program.

"These results are particularly disheartening for the patients who are suffering from this rare disease and were hoping for a new treatment option and for the employees who dedicated years of work to this program," Chief Executive Rick Winningham said.

"Given these results, we are taking decisive steps to restructure the organization and significantly reduce our cost base," he added.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 03, 2026 09:10 ET (14:10 GMT)

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