The all-cash deal for Vancouver-based Zymeworks to take publicly traded Theravance private is financed by a US$350-million loan from OMERS and US$219 million of Zymeworks’s own money; the remainder of the payout to Theravance’s shareholders is to come from Theravance’s own cash on hand. At US$17 a share, the deal prices Theravance at a discount from its closing price on Friday. (The Logic)

Talking point: Zymeworks is figuring out how to be a steady commercial drugmaker; Theravance has failed to make that leap. The U.S.-based, Ireland-domiciled firm has a couple of commercialized medications to its name—particularly Yupelri, a treatment for chronic obstructive pulmonary disease—but has been losing money and began reviewing strategic alternatives in 2024. Effectively, Zymeworks is buying the future revenue from the drugs Theravance has already developed and whatever it can get from selling the remainder of Theravance for parts.