Theravance, GlaxoSmithKline deal

Theravance will raise $212.9 million through the sale of 10 million shares at $21.29 to partner GlaxoSmithKline. The price is a 9% premium to Theravance's close of $19.50 on March 30, before the deal was announced. The investment will increase GSK's stake in the biotech to about 26.8% from about 18.3%. The deal is subject to stockholder approval at Theravance's annual meeting on May 15. If GSK's stake in the biotech becomes greater than 50.1%, GSK may make an offer to merge with or acquire Theravance.

GSK and Theravance are partnered under a 2002 deal to develop compounds to treat asthma and chronic obstructive pulmonary disorder (COPD), including Relovair fluticasone furoate/vilanterol ( GW685698/GW64244). In mid-2012, GSK plans to submit regulatory applications for Relovair for COPD in the U.S. and the EU, and for asthma in the EU. Relovair is a fixed-dose combination of an inhaled corticosteroid and a long-acting adrenergic receptor beta 2 agonist (LABA) (see BioCentury, Jan. 13, 2003). ...