Theravance Biopharma announced Monday that its board of directors authorized a $250 million capital return program to purchase GSK’s equity stake in the company.
As part of the plan, Theravance intends to commence with a ‘Dutch auction’ tender offer to buy $95 million of its ordinary shares and then enter into an open market stock repurchase plan for $60 million of ordinary shares. The company stated that it plans to complete this program by the end of next year.
According to its latest financial earnings report, Theravance’s total revenue was $11.1 million, marking a $1.9 million year-over-year decline. Additionally, the company’s R&D expenses totaled $15.6 million while its SG&A expenses totaled $17 million.
The biopharma company announced the news less than two months after GSK officially spun off its consumer health group Haleon.
In June 2021, the British pharma giant announced that it would spin off Haleon, a joint venture created with Pfizer in 2018, following numerous bids to purchase the company. For its part, Pfizer announced in June 2022 that it would divest its 32% stake. The de-merger was completed in late July.
Haleon’s spin off has several implications for other large healthcare companies and Tess Player, Haleon’s global head of healthcare professional and health influencer marketing, spoke with MM+M about how the new standalone company plans to differentiate itself in an increasingly crowded space.
Meanwhile, GSK has been active in the M&A space this year, most notably acquiring Affinivax, a U.S.-based biotech company, for up to $3.3 billion as well as Sierra Oncology for $1.9 billion.
