Shares of Theravance Biopharma TBPH sank by around 3% on June 29, 2026, after the company announced a definitive agreement with Zymeworks Inc. ZYME under which the latter will acquire TBPH in an all-cash transaction valued at approximately $929 million. The acquisition is expected to close in the second half of this year.
The deal followed a strategic review initiated after Theravance's growth outlook deteriorated significantly. The company relied primarily on collaboration revenues from its 35% share of U.S. profits from Viatris' VTRS marketed COPD therapy, Yupelri (revefenacin), leaving it dependent on a single commercial asset.
The company’s long-term growth strategy was centered on its lead candidate, ampreloxetine, a norepinephrine reuptake inhibitor being developed for symptomatic neurogenic orthostatic hypotension in patients with multiple system atrophy.
However, in early March, the pivotal phase III CYPRESS study failed to meet its primary and secondary endpoints despite demonstrating biological activity.
Consequently, TBPH decided to wind down the ampreloxetine program. Following the setback, the company launched a broad strategic review, explored value-maximizing alternatives, including a potential sale and implemented a major organizational restructuring to reduce costs.
Per management, the Zymeworks acquisition is the most value-maximizing option for Theravance shareholders after evaluating all available strategic alternatives.
Over the past three months, TBPH shares have risen 5.1% against the industry’s 3.7% decline.
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Key Highlights of the Acquisition Deal
Per the deal, Theravance shareholders will receive $17.00 in cash for each outstanding share, representing a 22% premium to the company's closing price on March 3, 2026, the day TBPH announced topline data from the phase III CYPRESS study of ampreloxetine and a 10% premium to its volume-weighted average share price since then. Shareholders of Theravance will receive a contingent value right entitling them to 80% of any net proceeds generated from the future licensing, divestiture or other monetization of ampreloxetine over the next 10 years, with the remaining 20% accruing to Zymeworks.
However, if no monetization transaction for ampreloxetine is completed before the acquisition closes, a Theravance-appointed representative will continue to pursue licensing, divestiture or other monetization opportunities on behalf of ZYME for up to 12 months following closing.
TBPH's Zacks Rank
Theravance currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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Theravance Biopharma, Inc. (TBPH): Free Stock Analysis Report
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Viatris Inc. (VTRS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).