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Theravance Shares Whipsaw After Deciding To Sell Royalty Rights Of GSK's Trelegy Ellipta

Shares of Theravance Biopharma, Inc. (TBPH) are currently trading down nearly 1% at $8.54 after gapping up more than 8% on Thursday. This follows the company's decision to sell royalty rights of GSK's Trelegy Ellipta to Royalty Pharma for more than $1.5 billion.

The transaction includes an upfront payment of about $1.1 billion, and up to $450 million on achieving certain milestones.

Additionally, Royalty Pharma will invest up to $40 million to develop Theravance' late-stage therapeutic, ampreloxetine in Multiple System Atrophy (MSA). This includes an upfront payment of $25 million and $15 million on approval of the drug.

In return, Royalty Pharma will receive future unsecured royalties of 2.5% on annual global net sales up to $500 million and 4.5% on annual global net sales over $500 million.

The company plans to initiate the Phase 3 study of ampreloxetine in early 2023.

TBPH has traded in the range of $6.10-$14.91 in the past 52 weeks.

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