Zymeworks agreed to acquire Theravance Biopharma in a $929 million deal, paying $17 per share in cash. The transaction is designed to diversify Zymeworks’ revenue and strengthen its balance sheet by bringing in late-stage and commercial assets and associated royalty streams. The deal specifically includes partial rights to Theravance’s COPD therapy Yupelri (revefenacin), along with expected payouts connected to co-development arrangements tied to Trelegy and other programs. Theravance recently faced setbacks after strategic review activities and trial failures. For biotech dealmakers, the structure signals continued appetite for royalty-adjacent cashflow assets even when a seller’s R&D platform has underperformed—particularly when commercial revenue can be underwritten by contracted partners.