Theravance Shares Rise Premarket on Sale of Trelegy Royalties

By Colin Kellaher

Theravance Biopharma shares rose sharply in premarket trading Monday after the biopharmaceutical company said it agreed to sell its remaining royalty interest in sales of the lung-disease treatment Trelegy Ellipta to U.K. drugmaker GSK for $225 million in cash.

Shares of Theravance, which closed Friday at $9.16, were recently up 9.3% to $10.01 in premarket trading.

Theravance said the sale covers its right to receive 85% of Trelegy royalties from sales from and after 2029 outside the U.S., and from and after 2031 in the U.S.

The South San Francisco, Ca., company said it retains its right to receive up to $150 million in Trelegy sales-related milestones in 2025 and 2026 from Royalty Pharma, which in 2022 bought the bulk of Theravance's economic interest in the Trelegy royalties for $1.1 billion up front and potential milestone payments of up to $250 million.

Theravance's economic interest in Trelegy originates from a 2002 collaboration agreement with GSK.

Theravance said the sale is the first outcome from the strategic review it launched in November in a bid to maximize shareholder value, adding that its board remains committed to returning excess capital to shareholders.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

06-02-25 0649ET