Andrew Hindman, Theravance CFO

Ther­a­vance, In­no­vi­va sell roy­al­ty rights on GSK's Trel­e­gy to Roy­al­ty Phar­ma for $1.3B up­front

Roy­al­ty Phar­ma is shelling out the big bucks to get its hands on roy­al­ties for a GSK drug.

Ther­a­vance Bio­phar­ma put out word Wednes­day that it has agreed to sell all of its shares in Ther­a­vance Res­pi­ra­to­ry Com­pa­ny (85%) to Roy­al­ty Phar­ma, who agreed to pay out $1.1 bil­lion in cash and an­oth­er $400 mil­lion in ad­di­tion­al pay­ments con­tin­gent on sales mile­stones. In­no­vi­va, who con­trols the oth­er 15%, al­so sold its shares to Roy­al­ty for an ad­di­tion­al $282 mil­lion plus a pos­si­ble $50 mil­lion mile­stone pay­ment in a co­or­di­nat­ed trans­ac­tion.

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