Theravance Biopharma, reeling from a clinical failure, has agreed to be acquired by royalty management company Zymeworks for $929 million. The deal follows a strategic review triggered when a key drug candidate for a type of low blood pressure failed in trials.
The failed therapy, which targeted a form of hypotension, marked a significant setback for Theravance, a firm that had already narrowed its focus after previous pipeline challenges. The acquisition price represents a premium that values the company's remaining assets, including its respiratory portfolio and royalty streams.
Under the terms, Zymeworks will pay $9.10 per share in cash, a roughly 48% premium over Theravance's closing price before the announcement. The deal is expected to close in the second quarter of 2025, pending shareholder and regulatory approvals.
For Zymeworks, the acquisition adds Theravance's marketed respiratory drug and a pipeline of early-stage candidates, though the near-term revenue impact is modest. Theravance shareholders will vote on the transaction at a special meeting; the company has recommended approval.
The failure of the hypotension drug underscores the high-risk nature of biotech R&D, where single trial readouts can reshape corporate strategy. Analysts note that the buyout, while offering immediate cash to shareholders, leaves unanswered questions about the long-term viability of Theravance's remaining pipeline.