Theravance Biopharma Sells Royalty Interest to GSK for $225M

By Greg Peters • Monday, June 02 15:47 • Permanent Link

Theravance Biopharma, Inc. has just announced the sale of its remaining royalty interest in Trelegy Ellipta to GSK for $225 million in cash. This transaction follows the company's initial sale of Trelegy royalty interests in 2022, which generated $1.1 billion in upfront cash. The sale of its remaining royalty interest is a part of the company's ongoing efforts to maximize shareholder value.

The company retains the rights to up to $150 million in milestones from Royalty Pharma on Trelegy Ellipta net sales in 2025 and 2026. This includes $50 million if the fiscal year 2025 global net sales reach approximately $3.41 billion, representing a decrease of approximately 1% compared to 2024. Additionally, Theravance Biopharma will receive $100 million if the fiscal year 2026 global net sales reach approximately $3.51 billion, reflecting an increase of approximately 2% compared to 2024.

This sale represents the first outcome of the ongoing efforts of the strategic review committee of the board of directors, which was formed in November 2024 to assess all strategic alternatives available to the company. Lazard acted as the exclusive financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP acted as the legal advisor to Theravance Biopharma.

Theravance Biopharma's financial guidance for 2025 remains unchanged, and the company continues to focus on disciplined capital allocation and returning excess cash to shareholders. The company's CEO, Rick E Winningham, emphasized the strategic value of this agreement with GSK, stating that it translates the company's confidence in Trelegy's sustained success into immediate value for Theravance Biopharma shareholders.

These developments come as the company remains committed to delivering medicines that make a difference in people's lives. Theravance Biopharma's portfolio includes FDA-approved Yupelri® for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD) and late-stage investigational once-daily norepinephrine reuptake inhibitor, ampreloxetine, in development for symptomatic neurogenic orthostatic hypotension (NOH) in patients with multiple system atrophy (MSA). Following these announcements, the company's shares moved 21.4%, and are now trading at a price of $11.12. For more information, read the company's full 8-K submission here.

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