Theravance 1Q Loss Narrows On Cuts, Revenue Boost

SOUTH SAN FRANCISCO, Calif. (AP) — Biotechnology company Theravance Inc. said Wednesday its first-quarter loss narrowed on lower costs and higher payments from partner GlaxoSmithKline PLC.

Theravance does not yet sell a product and gets its revenue from partnerships with GlaxoSmithKline and Astellas. In a statement, it said increased revenue was mainly due to a deferred Glaxo payment.

The company lost $19.2 million, or 31 cents per share, compared with a loss of $29.8 million, or 49 cents per share, during the same period a year earlier. Revenue rose 69 percent to $9.5 million from $5.6 million.

The results topped expectations of analysts polled by Thomson Reuters, who had forecast a loss of 32 cents per share on revenue of $7.6 million.

Operating expenses dipped 22 percent to $27.9 million, partly due to layoffs after development of the antibiotic telavancin was completed. The company is awaiting a Food and Drug administration decision on the experimental drug, aimed at treating hospital-acquired pneumonia and other hard-to-treat infections.

Shares of Theravance fell 51 cents to close the regular trading session at $14.58.