Theravance declares independence from GSK, crafts $250M plan to buy back its own shares
As Theravance Biopharma tries to plot its comeback, it announced Monday morning that it would be buying its own shares from GSK — one of its major shareholders.
Theravance is buying back over 9.5 million shares from GSK for roughly $94 million, according to an SEC filing. In addition, Theravance plans to buy back $95 million from its existing investors “in the near term,” and another $60 million in its shares on the open market. In a press release, Theravance says it hopes to complete that part of its plan by the end of 2023.
The move is the latest in a back-and-forth detangling series between GSK, Theravance, and Theravance’s spinoff Innoviva. GSK first tied up with Theravance in 2002 to develop a treatment for asthma and/or chronic obstructive pulmonary disease, initially picking up 4 million shares for $40 million. It gradually increased its ownership over the years, in 2010 and again in 2012.
But just over a year ago, GSK bailed on its own 32% stake in Innoviva, after objecting to all but one board member candidate. In 2020, GSK tried to sell its shares of Theravance as convertible senior notes due in 2023.
In July, Theravance and Innoviva sold their royalty rights to GSK’s Trelegy to Royalty Pharma for $1.3 billion upfront.
In the meantime, Theravance is trying to make a comeback, spelling out a niche for its lead candidate after it failed two Phase III trials last year.