Theravance Biopharma takes control of YUPELRI and R&D in bold buyout

By Vivian Lin · September 28, 2026, 4:04 PM · Updated: September 28, 2026, 10:59 PM · 3 mins read

Theravance Biopharma's latest deal brings YUPELRI and a strong R&D pipeline under its control, targeting a mid-teen IRR and using $350M in non-recourse funding.

Theravance Biopharma just changed its future. The company has bought YUPELRI and a large research and development portfolio. This deal is built to bring in new revenue and shore up its finances.

The buyout uses a $350 million non-recourse note. That limits risk for Theravance. The company gets instant capital for the purchase. It is aiming for a mid-teen internal rate of return (IRR). The focus is clear: keep finances tight and build long-term value.

Under the merger terms, each Theravance ordinary share was converted into $17.00 in cash plus one contingent value right (CVR), with the total deal valued at approximately $929 million.

This deal is not just about YUPELRI. The company also gains a wide set of R&D projects that could drive growth down the line. Theravance points to big upside. It highlights tax benefits and a much larger research pipeline as key ways to boost future returns.

An official SEC filing shows Zymeworks finished the Theravance Biopharma buyout on September 23, 2026. A conference call was set for September 28 to go over the details. YUPELRI, the only once-daily nebulized long-acting muscarinic antagonist (LAMA) approved in the U.S. for COPD maintenance, now sits at the center of Zymeworks’ commercial lineup. It is the main cash engine for this deal.

Theravance Biopharma is taking a different path than other recent industry deals. The earlier $929 million respiratory buyout, as reported, focused on quick commercial wins. Here, the plan is more layered. Theravance is betting on both near-term revenue from YUPELRI and the long-term value of its new R&D assets.

Through Theravance’s collaboration with Viatris, Zymeworks is entitled to a 35% share of net U.S. profits from YUPELRI and receives royalties on net sales outside the United States. In the first half of 2026, YUPELRI generated $133.1 million in total sales, resulting in $38.4 million of collaboration revenue to Theravance Biopharma.

Zymeworks guidance release

The company’s M&A announcement audio from September 28, 2026, makes one thing clear. The deal’s financial structure matters as much as the assets. Using a non-recourse note means if the new assets fall short, the risk is capped. That kind of risk control is rare in biotech deals this size.

Zymeworks, in its official press release, said the deal brings a "durable, recurring source of cash flow" to fund long-term growth. The financing includes $350 million in new senior secured non-recourse notes from OMERS Life Sciences. These notes are backed by Theravance’s 35% share of YUPELRI profits. That shows just how central YUPELRI is to the whole deal.

Theravance Biopharma is not chasing the next big hit. The company set up this buyout to capture both quick and future value. It wants to show discipline in a sector known for wild swings and short-term bets. This move points to a new kind of biotech deal—one where financial discipline and smart asset picks matter as much as science.

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Vivian Lin

Vivian Lin is Biotech Markets & Transactions Editor at GenoMethods, covering licensing agreements, M&A, biotech financing, company pipelines, strategic partnerships and cross-border transactions. Her reporting connects deal structure and company strategy with the scientific and clinical evidence underlying each biotechnology asset.