VANCOUVER, British Columbia, June 29, 2026
Zymeworks Inc. has announced a definitive agreement to acquire Theravance Biopharma, Inc. in a transaction valued at approximately $929 million, marking a major strategic expansion of its commercial healthcare portfolio and long-term growth strategy. Under the agreement, Zymeworks will acquire all outstanding Theravance Biopharma shares for $17.00 per share in cash, adding YUPELRI® (revefenacin), the first and only once-daily nebulized long-acting muscarinic antagonist (LAMA) approved for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in the United States. The acquisition strengthens Zymeworks’ portfolio by combining revenue-generating commercial assets with its innovative research and development pipeline, creating a diversified business model designed to support future therapeutic innovation while delivering sustainable shareholder value. The transaction is expected to close during the second half of 2026, subject to regulatory approvals and shareholder approval, and is anticipated to be immediately accretive to earnings and cash flow following completion. The acquisition also demonstrates Zymeworks’ strategy of leveraging established commercial products to finance next-generation biotechnology development while expanding its presence in respiratory medicine and specialty pharmaceuticals.
YUPELRI Acquisition Strengthens Commercial Revenue and Growth
A key highlight of the transaction is the addition of YUPELRI®, which currently generates approximately $60 million in annualized cash flow through U.S. profit-sharing and international royalty agreements. Marketed in collaboration with Viatris, YUPELRI has established itself as the only FDA-approved once-daily nebulized LAMA therapy for COPD maintenance treatment and continues to demonstrate steady commercial growth. The acquisition also includes valuable additional assets beyond YUPELRI, including future royalty streams, milestone payment opportunities, preclinical inflammation and immunology programs, and approximately $2.5 billion in Irish tax attributes, providing significant long-term financial flexibility.
Zymeworks plans to preserve Theravance Biopharma’s hospital-focused commercial infrastructure while implementing organizational efficiencies that align the combined company around its expanding portfolio of commercial healthcare products and innovative biologics. Through this approach, the company expects to generate stronger recurring revenues capable of supporting future acquisitions, internal research programs, and continued shareholder returns.
Innovative Financing Supports Long-Term Strategic Expansion
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The acquisition features a highly structured financing model designed to minimize shareholder dilution while preserving Zymeworks’ financial flexibility. The transaction will be financed primarily through a $350 million non-recourse financing agreement with OMERS Life Sciences, secured solely by future U.S. YUPELRI profit-sharing revenues, alongside Theravance Biopharma’s anticipated cash balance at closing. Zymeworks will contribute approximately $219 million of its existing cash resources while expecting an additional $100 million milestone payment associated with TRELEGY ELLIPTA® commercial performance in early 2027, further reducing its effective net investment. Company leadership emphasized that combining stable commercial cash flows with innovative antibody-based research programs creates a differentiated business model capable of sustaining both scientific innovation and financial growth.
Beyond the immediate commercial benefits, the acquisition significantly diversifies Zymeworks’ healthcare asset portfolio by integrating established respiratory products, royalty-generating assets, and future development opportunities with its existing oncology and biotherapeutics pipeline. The acquisition of Theravance Biopharma represents another significant milestone in the biotechnology industry’s evolving merger and acquisition landscape, highlighting how commercial product portfolios are increasingly being combined with innovative research platforms to create sustainable long-term growth. By strengthening both its commercial revenue base and future development capabilities, Zymeworks is positioning itself as a diversified biotechnology company capable of delivering innovative therapies while maintaining strong financial performance across multiple therapeutic areas.
Source: Zymeworks, Theravance Biopharma press release
