Zymeworks Inc. shares reached a 52-week high of $29.75 on Tuesday, extending gains after the biotech company agreed to acquire Theravance Biopharma Inc. in a cash deal valued at approximately $929 million.
The transaction, announced late Monday, values Theravance at $17 per share in cash, representing a premium to its recent trading levels. Zymeworks also disclosed a contingent value right tied to potential future monetization of ampreloxetine, granting an 80% share to Theravance shareholders while Zymeworks retains 20% of proceeds over a ten-year period.
The acquisition adds YUPELRI, a chronic obstructive pulmonary disease treatment, to Zymeworks' portfolio. Shares of Zymeworks have climbed 10.36% over the past week and 97.46% over the past year, reflecting investor optimism surrounding the deal and the company's pipeline.
Analysts have maintained a bullish stance on Zymeworks following the announcement. B. Riley reiterated a Buy rating with a $40 price target, Stifel maintained a Buy with a $47 target, and H.C. Wainwright kept its Buy rating and $46 target after reviewing new clinical data for Zymeworks' ZW191 presented at a medical conference. BTIG, however, downgraded Theravance from Buy to Neutral.
