Zymeworks Inc. (NASDAQ:ZYME) said Monday it has agreed to acquire Theravance Biopharma Inc. (NASDAQ:TBPH) in an all-cash transaction valued at about $929 million.
The deal, which aims to bolster Zymeworks’ commercial portfolio, will pay $17 per share for Theravance Biopharma shares. The companies expect the deal to close in the second half of 2026.
Acquisition Adds YUPELRI To Zymeworks Portfolio
The acquisition will add Yupelri, the only approved once-daily nebulized long-acting muscarinic antagonist for maintenance treatment of chronic obstructive pulmonary disease.
Zymeworks will gain access to a 35% share of U.S. net profits from Yupelri.
The COPD therapy has been marketed in the U.S. since 2019 through a collaboration between Viatris and Theravance Biopharma.
Yupelri generated U.S. net sales of $266.6 million in 2025, representing 12% growth from the prior year. First-quarter 2026 sales reached $62.4 million, up 7% year-over-year.
Additional Assets And Cost Synergies
Beyond Yupelri, Theravance Biopharma is expected to receive a $100 million commercial milestone payment from Royalty Pharma Plc (NASDAQ:RPRX) in the first quarter of 2027, tied to global sales of TRELEGY ELLIPTA.
The company also remains eligible for royalties on VIBATIV sales from Cumberland.
Zymeworks said it will evaluate Theravance’s R&D assets within its broader capital allocation framework and may seek to monetize certain assets, including ampreloxetine.
The company plans to implement Theravance’s previously announced restructuring initiatives while largely preserving the hospital promotion infrastructure supporting Yupelri.
Deal Financing And Share Buybacks
As of March 31, 2026, Zymeworks had $403.8 million of cash resources.
The acquisition will be financed through a $350 million non-dilutive, non-recourse note from OMERS Life Sciences, approximately $219 million from Zymeworks’ existing cash, and Theravance’s anticipated net cash balance of about $360 million.
Separately, Zymeworks said it intends to continue executing its previously authorized $125 million share repurchase program.
As of June 29, the company had repurchased approximately 1.44 million shares for $35.4 million.
TBPH/ZYME Stock Price Activity: Theravance Biopharma shares were down 3.01% at $17.10, and Zymeworks shares were down 5.59% at $22.80 during premarket trading on Monday, according to Benzinga Pro data.
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