June 29 (Reuters) – Zymeworks said on Monday it will acquire Theravance Biopharma for $929 million in cash, marking the oncology-focused drugmaker’s entry into the highly competitive respiratory disease segment.
The deal gives Zymeworks access to Theravance’s FDA-approved drug Yupelri, a once-daily nebulized treatment for chronic obstructive pulmonary disease (COPD), putting it in competition with major drugmakers that dominate the segment, including GSK, AstraZeneca and Boehringer Ingelheim.
Under the agreement, Zymeworks will buy all outstanding Theravance shares for $17 each, implying an about 3.6% discount to the stock’s last close on Friday.
Theravance shares slipped 3.5% in morning trading, while Zymeworks dropped more than 8%.
Zymeworks said Theravance has a 35% net profit share in Yupelri in the U.S., which is marketed in the country through a collaboration with Viatris.
Yupelri’s U.S. net sales were $266.6 million in 2025, up 12% from 2024. In the first quarter of 2026, U.S. net sales rose 7% to $62.4 million.
Theravance had said earlier this year it was exploring strategic alternatives, including a potential sale, after its experimental drug ampreloxetine for a rare disorder failed a late-stage trial.
Zymeworks will consider monetizing acquired assets, including ampreloxetine, with any proceeds from a potential ampreloxetine deal to be split 20% for Zymeworks and 80% for Theravance shareholders, the drugmaker said.
The acquisition is expected to provide near-term cash flow for Zymeworks following the deal’s close, which is expected in the second half of 2026.
COPD is a progressive lung disease that obstructs airflow and makes breathing difficult.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda)
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