GlaxoSmithKline acquires larger Theravance share

GlaxoSmithKline has announced that it has increased its ownership of its collaborative partner Theravance from 18.3 percent to 26.8 percent.

The new stock purchase agreement has seen Theravance issuing ten million shares of common stock to be bought by GlaxoSmithKline, for a total investment value of $212.89 million (132.95 million pounds).

This brings GlaxoSmithKline's total ownership of Theravance shares to 25,814,421, with the transaction set to be concluded shortly after Theravance's upcoming annual meeting, assuming the necessary closing conditions are met.

GlaxoSmithKline and Theravance have been working in collaboration since 2002, when they commenced work on the development of Relovair, a new treatment for asthma and chronic obstructive pulmonary disease (COPD).

Phase III clinical data released earlier this year showed the potential benefits of the treatment in both specifications, with regulatory submissions in the US and Europe set to follow this year.

In addition, the partners are working on a bi-functional muscarinic antagonist-beta 2 agonist for the treatment of COPD, which is currently undergoing phase II testing.