Glaxo Buys $129M in Theravance Stock

Xconomy San Francisco — 

Theravance (NASDAQ: THRX), the South San Francisco-based biotech company, said today that pharmaceutical giant GlaxoSmithKline has agreed to buy $129.4 million worth of Theravance stock. Glaxo agreed to buy 5.75 million shares at $22.50 apiece—so it will now have about a 19 percent ownership stake in Theravance. The companies have been partners since 2002, and a Glaxo official said in a statement that the two companies have a “strong relationship.” One of the products of that relationship is Relovair, a treatment for asthma and chronic obstructive pulmonary disease. Since Phase III clinical results for Relovair are expected in mid to late 2011, analyst Thomas Russo of Robert W. Baird said in a note to clients that the stock purchases “can be read as a show of confidence by Theravance’s partner.”