Why Are Theravance Bio Shares Plummeting Premarket Today?

Theravance Biopharma Inc TBPH will reduce its headcount by approximately 75% (estimated 270 positions), with most of the lay off to complete in November and the remainder in February 2022.
The Company sees a total annualized operating expense savings of approximately $165 million in 2022 and expects a positive cash flow beginning in 2H of 2022.
Theravance will halt the development of all non-respiratory disease-related programs except that it will close out the izencitinib Phase 2 Crohn's disease study and the ampreloxetine Phase 3 REDWOOD study.
From now on, Theravance will focus on COPD and asthma medicines, including Yupelri, which is commercialized in partnership with Viatris Inc VTRS, and Trelegy, a respiratory therapy developed in collaboration with GlaxoSmithKline plc GSK.
Trelegy is expected to generate peak sales of approximately $3.0 billion annually, while Yupelri can potentially generate peak sales of $400 million.
The restructuring came after Theravance announced topline data from the Phase 3 study evaluating ampreloxetine for symptomatic neurogenic orthostatic hypotension (nOH). The study did not meet its primary endpoint.
In light of these results, the Company will be determining the appropriate next steps for Study 0170 and Study 0171.
Price Action: TBPH shares are down 19.90% at $6.44 during the premarket session on the last check Wednesday.