Zymeworks will pay $17 per share for the South San Francisco company. This price represents a 3.6% discount from Friday’s closing valuation of $17.63, though it marks a 22% premium over the company's share price on March 3. That previous valuation collapse followed the failure of a Phase 3 study for ampreloxetine, an event that triggered a widespread corporate restructuring and the dismissal of half of Theravance’s workforce.

Beyond the cash payment, the deal includes contingent value rights for current shareholders. These rights grant them 80% of net proceeds from any future monetization or licensing of ampreloxetine over the next decade. Zymeworks also intends to leverage roughly $2.5 billion in Irish tax attributes held by Theravance. The transaction is expected to close in the second half of the year, effectively concluding the strategic review process initiated by the board following the drug candidate's clinical failure.