Theravance Biopharma, Inc. Fair Value Disclosure
5. Investments and Fair Value Measurements
Available-for-Sale Securities
The estimated fair value of marketable securities is based on quoted market prices for these or similar investments obtained from a commercial pricing service. The fair market value of marketable securities classified within Level 1 is based on quoted prices for identical instruments in active markets. The fair value of marketable securities classified within Level 2 is based on quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; or model-driven valuations whose inputs are observable or whose significant value drivers are observable. Observable inputs may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications.
Available-for-sale securities are summarized below:
December 31, 2025 | ||||||||||||||
| | | Gross | | Gross | | ||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||
(In thousands) | Cost | Gains | Losses | Fair Value | ||||||||||
US government securities | $ | 130,602 | $ | 43 | $ | (1) | $ | 130,644 | ||||||
Corporate notes |
| 37,690 | 15 | (1) |
| 37,704 | ||||||||
Commercial paper | 71,695 | 8 | (3) | 71,700 | ||||||||||
Marketable securities | 239,987 | 66 | (5) | 240,048 | ||||||||||
Money market funds | Level 1 | 79,387 | — | — | 79,387 | |||||||||
Total | $ | 319,374 | $ | 66 | $ | (5) | $ | 319,435 | ||||||
December 31, 2024 | ||||||||||||||
| | | Gross | | Gross | | ||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||
(In thousands) | Cost | Gains | Losses | Fair Value | ||||||||||
US government securities | $ | 17,306 | $ | 8 | $ | — | $ | 17,314 | ||||||
Corporate notes |
| 5,431 |
| 1 |
| (1) |
| 5,431 | ||||||
Commercial paper |
| 35,285 |
| 1 |
| (2) |
| 35,284 | ||||||
Marketable securities | 58,022 | 10 | (3) | 58,029 | ||||||||||
Money market funds | Level 1 | 550 | — | — | 550 | |||||||||
Total | $ | 58,572 | $ | 10 | $ | (3) | $ | 58,579 | ||||||
As of December 31, 2025, all of the Company’s available-for-sale securities had contractual maturities within 15 months, and the weighted-average maturity of marketable securities was approximately two months. There were no transfers between Level 1 and Level 2 during the periods presented, and there have been no material changes to the Company’s valuation techniques during the year ended December 31, 2025 or 2024.
Available-for-sale securities with unrealized losses are summarized below:
December 31, 2025 | ||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | ||||||||||||||||
| | Gross | | Gross | | Gross | ||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||
(In thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||
US government securities | $ | 9,998 | $ | (1) | $ | — | $ | — | $ | 9,998 | $ | (1) | ||||||
Corporate notes | 8,265 | (1) | — | — | 8,265 | (1) | ||||||||||||
Commercial paper | 23,565 | (3) | — | — | 23,565 | (3) | ||||||||||||
Total | $ | 41,828 | $ | (5) | $ | — | $ | — | $ | 41,828 | $ | (5) | ||||||
December 31, 2024 | ||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | ||||||||||||||||
Gross | Gross | Gross | ||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||
(In thousands) | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||
Corporate notes | $ | 4,114 | $ | (1) | $ | — | $ | — | $ | 4,114 | $ | (1) | ||||||
Commercial paper | 18,883 | (2) | — | — | 18,883 | (2) | ||||||||||||
Total | $ | 22,997 | $ | (3) | $ | — | $ | — | $ | 22,997 | $ | (3) | ||||||
The Company invests primarily in high credit quality and short-term maturity debt securities with the intent to hold such securities until maturity at par value. The Company does not intend to sell the investments that are currently in an unrealized loss position, and it is unlikely that it will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity. The Company reviewed its available-for-sale debt securities and determined that there were no credit-related losses to be recognized as of December 31, 2025, and there were no individual securities that were in a significant unrealized loss position as of December 31, 2025.
For the year ended December 31, 2024, the Company sold marketable securities for total proceeds of $15.8 million. The sales were based on the specific identification method, and the realized net gain (loss) from the sales was immaterial. The Company did not sell any marketable securities for the year ended December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 23, 2026 | Showing above |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Mar 11, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.