Theravance Stock Plunges As JAK Inhibitor Flops Ulcerative Colitis Study - Theravance Biopharma (NASDAQ:TBPH), Johnson & Johnson (NYSE:JNJ)

Theravance Biopharma Inc's TBPH Izencitinib, a "gut-selective" JAK inhibitor developed for ulcerative colitis and Crohn's disease, failed a key Phase 2 trial.
Johnson & Johnson's JNJ pharmaceutical unit Janssen dished out $100 million upfront in a partnership with Theravance to develop Izencitinib back in 2018.
Another $900 million in milestones are on the line for the therapy, which Theravance is also testing in a Phase 2 trial for Crohn's disease.
Janssen can opt-out of the collaboration following the phase 2 studies.
The Crohn's data is due in Q4 of 2021 or Q1 of 2022.
In the eight-week induction portion of the Phase 2 trial, Izencitinib failed to show benefit over placebo on the Mayo score improvement primary endpoint or clinical remission, a key secondary endpoint.
Theravance noted "a small dose-dependent increase in clinical response" measured by Mayo, but not enough to drive significant benefit.
Regarding current plans, Theravance will work to understand the complete results and implications for Izencitinib.
Forthcoming ulcerative colitis data will include results from the 16-week extended induction portion of the study and the 44-week maintenance study.
Related: Theravance's another JAK Inhibitor Nezulcitinib Failed In Phase 2 COVID-19 Study.
Price Action: TBPH shares are trading down 27.38% at $10.29 in premarket on the last check Tuesday.