Zymeworks to Acquire Theravance Biopharma for $929M, Adding Commercial COPD Drug YUPELRI®

summarizeSummary

Zymeworks is acquiring Theravance Biopharma for $929 million in cash and CVRs, gaining the commercial COPD drug YUPELRI® and other assets, funded by a non-recourse note and Theravance's cash.

check_boxKey Events · M&A and Partnerships · ZYME

• Acquisition of Theravance Biopharma

  Zymeworks will acquire Theravance Biopharma for $17.00 per share in cash plus one Contingent Value Right (CVR) per share, totaling approximately $929 million in cash consideration.

• Strategic Asset Addition

  The acquisition adds YUPELRI® (revefenacin), a commercial COPD drug with an estimated $60 million in annual U.S. net profit share, and other assets including potential milestone payments and Irish tax attributes.

• Non-Recourse Financing

  The transaction is primarily financed by a $350 million non-recourse note from OMERS Life Sciences, secured by 75% of YUPELRI® profit-share cash flows, along with Theravance's net cash and a $219 million contribution from Zymeworks.

• Expected Financial Impact

  The acquisition is anticipated to be accretive to earnings and cash flow upon closing, supporting Zymeworks' strategy to fund R&D and future acquisitions with partnered asset cash flows.

auto_awesomeAnalysis · ZYME · Life Sciences

This acquisition significantly expands Zymeworks' commercial portfolio and diversifies its revenue streams. The deal, valued at approximately $929 million, is financed through a non-recourse note and Theravance's cash, limiting Zymeworks' direct cash outlay and avoiding shareholder dilution. The addition of YUPELRI®, a commercial COPD drug with an estimated $60 million in annual profit share, is expected to be immediately accretive to earnings and cash flow, supporting Zymeworks' strategy of funding R&D and future acquisitions with partnered asset cash flows.