Zymeworks agreed to acquire Theravance Biopharma in a $929 million transaction, combining Theravance’s commercial and royalty-stream assets with Zymeworks’ balance-sheet and portfolio strategy. The deal is structured to provide Zymeworks access to partial rights to Theravance’s COPD drug Yupelri, along with associated payouts tied to co-development rights. The announcement follows Theravance’s strategic review after clinical setbacks, including failure of its ampreloxetine program. Zymeworks is also described as using non-recourse financing tied to Yupelri cash flow to limit net capital at risk, with additional expected milestone payouts linked to Trelegy-related revenue. The acquisition highlights how royalty-managed businesses are being used to stabilize cash flows while funding pipeline commitments—an increasingly common approach in biopharma dealmaking when clinical momentum is uneven.