Zymeworks has agreed to buy Theravance Biopharma for $929 million in cash, reshaping the royalty-focused biotech with immediate exposure to commercial respiratory revenue from Yupelri (revefenacin). The deal includes a $350 million non-recourse note from OMERS Life Sciences tied to Yupelri profit share, plus cash from Theravance and Zymeworks, with Theravance shareholders receiving $17 per share. The transaction follows Theravance’s earlier strategic review and a hit from the company’s ampreloxetine Phase 3 failure in multiple system atrophy-related low blood pressure. Zymeworks said the acquisition is designed to diversify its revenue base, strengthen its balance sheet, and fund additional oncology programs. Theravance’s economics include expected commercial milestone payments tied to Trelegy Ellipta sales and additional payouts linked to ampreloxetine licensing or sale. Analysts characterize the offer as a premium to Theravance’s trading levels after the ampreloxetine setback, with Yupelri cash flows positioned to repay deal financing. For investors, the deal underscores how value in late-stage respiratory franchises can translate into near-term liquidity and balance-sheet flexibility, particularly for companies built around royalty streams rather than discovery-to-launch risk.