GlaxoSmithKline ups stake in Theravance to 19%, buying additional shares for $129.4 million

UK pharmaceutical giant GlaxoSmithKline (LSE: GSK) revealed yesterday that it will increase its shareholding in US respiratory drug partner Theravance (Nasdaq: THRX) through the purchase of common stock in a private placement.

GSK said it would buy 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 was scheduled to close later the same day. As a result, GSK will own 15,151,499 shares of Theravance common stock and Class A common stock, which represent around 19% of the total. The most recent five-day volume-weighted average price per share of Theravance common stock was $22.35, the UK firm stated.

“We have built a strong relationship with Theravance since entering into the collaboration agreement in 2002,” said Moncef Slaoui, chairman of R&D at GSK, adding: “We were keen to take advantage of this opportunity to increase our shareholding in Theravance. This reflects the confidence we have in the Relovair (fluticasone furoate/vilanterol trifenatate) program and the wider late stage respiratory pipeline that we have built up through the collaboration.”