Theravance Biopharma Prepares for Zymeworks Acquisition
Theravance Biopharma heads toward a late-2026 acquisition by Zymeworks, reporting a second-quarter net loss of $5.9 million while executing a deep organizational restructuring. The company, which maintains a cash balance of $388 million with no debt, is banking on the continued growth of its core respiratory asset, YUPELRI.
The pending $17.00-per-share cash deal, announced in June, follows a strategic review aimed at maximizing shareholder value. Under the terms, Theravance investors also gain a contingent value right tied to the future monetization of ampreloxetine over the next decade. CEO Rick E. Winningham confirmed that the company remains on track to finalize the transaction in the second half of the year, pending shareholder and regulatory approvals.
Operationally, the firm has focused on tightening its belt. A rigorous cost-reduction plan launched in March has successfully slashed operating expenses by 35% compared to the prior year. This restructuring is projected to yield $70 million in annual savings, significantly improving the company's financial profile as it transitions toward the Zymeworks integration. Meanwhile, the Viatris-partnered YUPELRI continues to perform, with collaboration revenue rising 11% to $20.7 million, bolstered by a 10% increase in customer demand.
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