Why Theravance Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biopharmaceutical company Theravance (NASDAQ: THRX  ) climbed as high as 13% today after announcing plans to split into two companies, separating its drugs under development with GlaxoSmithKline from its other operations.

So what: The stock has been stagnant over the past couple of years on sluggish sales and royalties, but the separation should unlock some hidden value from two very different sets of assets. The move also increases the likelihood that Glaxo will eventually buy out Theravance's franchise lung disease drugs Breo and Anoro.

Now what: Theravance expects that the separation will be completed by late 2013 or early 2014. "After the separation, Theravance Biopharma will focus on Theravance's multivalent discovery capabilities and pipeline of programs," wrote the company in a statement. "Royalty Management Co will continue to focus on managing the rights to the significant potential royalty streams from certain products developed under the LABA collaboration with GSK." So while the stock is still too speculative for average Fools, Theravance might be a special situation for biotech-savvy investors to consider.

Interested in more info Theravance? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2390106, ~/Articles/ArticleHandler.aspx, 10/23/2014 12:35:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement