GlaxoSmithKline to increase its shareholding in Theravance

GlaxoSmithKline plc (GSK) and Theravance, Inc. (NASDAQ: THRX) (the “Company”) announced today that GSK will increase its shareholding in Theravance through the purchase of Theravance common stock in a private placement. GSK and Theravance have entered into a stock purchase agreement for GSK to purchase 5,750,000 shares of Theravance common stock at a price of $22.50 per share, for a total investment of $129,375,000. The transaction is scheduled to close later today. Following this purchase, GSK will own 15,151,499 shares of Theravance common stock and Class A common stock, which represent approximately 19% of the total outstanding capital stock of Theravance. The most recent five-day volume-weighted average price per share of Theravance common stock was $22.35.

“We have built a strong relationship with Theravance since entering into the Collaboration Agreement in 2002,” said Moncef Slaoui, Chairman of Research & Development of GSK. “We were keen to take advantage of this opportunity to increase our shareholding in Theravance. This reflects the confidence we have in the Relovair programme and the wider late stage respiratory pipeline that we have built up through the collaboration.”

“I am very pleased with our collaboration with GSK which is currently developing a portfolio of next-generation therapies for the treatment of serious respiratory disorders such as asthma and chronic obstructive pulmonary disease,” said Rick E Winningham, Chief Executive Officer of Theravance. “We are excited for GSK to become a larger shareholder of our Company and look forward to continuing to work closely with GSK to advance our collaboration programmes.”