Zymeworks has agreed to acquire Theravance in a transaction valued at approximately $929 million, adding Theravance’s commercial products, royalty agreements, and development-stage assets to its business. The acquisition follows Zymeworks’ previously announced strategy to become more reliant on royalty-driven revenue while continuing internal development, licensing, and acquisition activities.
Under the terms of the agreement, Zymeworks will pay $17 per share in cash and provide a contingent value right (CVR) tied to future transactions involving Theravance’s drug candidate ampreloxetine. The companies expect the transaction to close in the second half of the year.
A key asset in the deal is Theravance’s interest in Yupelri, a long-acting muscarinic antagonist maintenance treatment for chronic obstructive pulmonary disease (COPD) that is marketed with Viatris. Theravance’s 35% share of U.S. net profits from the product will transfer to Zymeworks. The therapy generated $266.6 million in 2025 sales, representing a 12% increase from the previous year. Theravance has stated that the product provides an annualized cash flow of between $60 million and $70 million.
In addition to the profit-sharing arrangement, Zymeworks will become eligible for up to $125 million in commercial milestone payments tied to certain U.S. sales achievements for Yupelri, as well as related royalty payments.
The transaction also includes Theravance’s agreement with Royalty Pharma, which is expected to provide a $100 million milestone payment in the first quarter of 2027 based on global net sales of GSK’s COPD and asthma inhaler Trelegy Ellipta. Another agreement previously established with Cumberland will provide Zymeworks with royalties equal to 20% of the net sales of the antibacterial therapy Vibativ.
Alongside the commercial and royalty assets, Zymeworks will acquire several investigational programs. The company said these assets will be evaluated within the context of its broader pipeline and capital allocation framework. During the period before the transaction closes, a Theravance representative will review a potential licensing transaction for ampreloxetine, a drug that has been under development for neurodegenerative disease.
The CVR structure gives Theravance shareholders the right to receive 80% of net proceeds from any future business development transactions involving ampreloxetine during the next 10 years, while Zymeworks would receive the remaining 20%.
The acquisition follows a period of restructuring at Theravance. In March, the company announced plans to wind down research and development operations after ampreloxetine failed the Phase 3 CYPRESS trial in neurogenic orthostatic hypotension in patients with multiple system atrophy. The company subsequently launched a restructuring plan intended to reduce operating expenses by 60% and began evaluating strategic alternatives, including a potential sale.
According to the companies, Theravance also has approximately $2.5 billion in Irish tax attributes available for potential future utilization.
Commenting on the transaction, Theravance’s independent board chair Susannah Gray said, “We believe this transaction recognizes the value of our assets, including our interest in Yupelri, the potential Trelegy milestone payment, a robust balance sheet, and Irish tax attributes.”
The deal follows a strategic review process conducted by Theravance and transfers its commercial, royalty, and development assets to Zymeworks under the terms announced by the companies.
Zymeworks has entered into a definitive agreement to acquire Theravance Biopharma in a transaction valued at approximately $929 million. The acquisition is expected to strengthen Zymeworks by expanding its clinical-stage pipeline, enhancing its research capabilities, and supporting its long-term strategy to deliver innovative therapies for patients with serious diseases.
The deal highlights the growing momentum of mergers and acquisitions in the biotechnology sector as companies seek to broaden their product portfolios and accelerate drug development through strategic investments.
Zymeworks Strengthens Its Clinical Pipeline
The acquisition will provide Zymeworks with access to Theravance’s portfolio of development-stage therapies, scientific expertise, and valuable intellectual property. By integrating these assets, Zymeworks aims to create a more diversified pipeline with multiple opportunities for future regulatory approvals and commercial success.
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