Theravance has announced that its LABA Royalty Sub wholly owned subsidiary “issued $450 million in aggregate principal amount of PhaRMA 9% Notes due on or before May 15, 2029. The notes are secured by a security interest in a segregated bank account established to receive 40% of royalties from global net sales of Relvar/Breo Ellipta (fluticasone furoate/vilanterol “FF/VI”), Anoro Ellipta (umeclidinium bromide/vilanterol, UMEC/VI) and, if developed, approved and commercialized, VI monotherapy, all of which are partnered with GSK, beginning with sales occurring on or after April 1, 2014 and ending upon the earlier of full repayment of principal or May 15, 2029.”
In April 2013, Theravance announced that it would split into two companies, with one company, Theravance Biopharma, continuing to develop small molecule pharmaceuticals and the other, Theravance, Inc., managing royalties from the Ellipta dry powder inhaler products.
Theravance Senior VP and CFO Michael W. Aguiar explained, “This non-dilutive financing allows us to accelerate the execution of our strategy to begin providing capital returns to stockholders of Theravance, Inc. related to Relvar/Breo Ellipta and Anoro Ellipta. We remain on track to complete the spin-off in the second quarter of 2014 and look forward to providing more definitive guidance on the key operating metrics for both companies prior to the separation.”
Read the Theravance press release.
