Zymeworks to Acquire Theravance Biopharma for $929 Million

By Philip Seaworth • Monday, June 29 13:02 • Permanent Link

Zymeworks said Monday it will buy Theravance Biopharma for $17.00 a share, valuing the deal at about $929 million in cash. The transaction is expected to close in the second half of 2026.

The acquisition brings in Yupelri, Theravance’s COPD drug, which generated $266.6 million in U.S. net sales in 2025, up 12% from 2024. In the first quarter of 2026, Yupelri U.S. net sales rose to $62.4 million, a 7% increase from the same quarter a year earlier. Zymeworks said the product’s U.S. profit share and ex-U.S. royalties are producing about $60 million in annualized cash flow at current run-rates.

Zymeworks said the purchase will be financed mainly with a $350 million non-recourse note from OMERS Life Sciences and Theravance’s expected net cash balance of about $360 million at closing. Zymeworks will add $219 million of its own cash at closing. The company also expects a $100 million Trelegy Ellipta milestone payment in the first quarter of 2027, which it said would offset part of the cash outlay.

The deal also gives Zymeworks access to additional Theravance assets, including royalty interests, milestone payments, a preclinical inflammation-and-immunology portfolio, and about $2.5 billion of Irish tax attributes. Theravance remains eligible for up to $125 million in additional commercial milestone payments tied to Yupelri U.S. sales, plus double-digit tiered royalties and additional ex-U.S. milestones.

Zymeworks said it has already repurchased 1,437,073 shares under its 2026 buyback program for $35.4 million, at an average price of $24.63 a share. The company still has up to $125 million authorized under that program.

For Theravance, the deal marks a clean exit at $17 a share. For Zymeworks, it adds a revenue-generating COPD asset that has been growing at a double-digit rate in full-year sales and a mid-single-digit rate in the latest quarter, while increasing the company’s near-term cash flow base and expanding its portfolio of royalty and milestone assets. As a result of these announcements, the company's shares have moved -7.83% on the market, and are now trading at a price of $22.26. If you want to know more, read the company's complete 8-K report here.

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