Zymeworks Inc. filed a current report on September 23, 2026, disclosing the completion of its merger with Theravance Biopharma, Inc., along with the entry into a Contingent Value Rights Agreement and a $350,000,000 senior secured notes financing transaction.

Key Highlights

  • Merger closed: Zymeworks completed its acquisition of Theravance Biopharma on September 23, 2026, with Theravance surviving as a wholly owned subsidiary of Zymeworks.
  • Cash consideration: Each Theravance ordinary share was canceled and converted into the right to receive $17.00 in cash, without interest, plus one contingent value right (CVR).
  • CVR structure: Each CVR entitles holders to a pro rata share of 80% of net proceeds from any license, divestiture, or monetization of ampreloxetine, a $50 million first commercial sale milestone payment, and 10% of net sales on a country-by-country basis.
  • CVR payment window: The license and milestone provisions apply within a ten-year period following the closing; the royalty on net sales runs until the later of the 10th anniversary of first commercial sale, patent expiration, or loss of exclusivity.
  • Senior secured notes: Indirect Zymeworks subsidiaries issued $350,000,000 in aggregate initial principal senior secured notes to OCM IP Healthcare Portfolio LP, an affiliate of OMERS Private Capital.
  • CVR speculative nature: The filing states that "the CVRs and the possibility of receiving any payment pursuant to the CVRs are highly speculative and subject to numerous factors outside the control of Zymeworks or its affiliates."

Zymeworks Acquires Theravance Biopharma and Issues Ampreloxetine-Linked CVRs

According to the filing, Zymeworks Inc. (NASDAQ:ZYME), a Delaware corporation, completed the merger with Theravance Biopharma, Inc. on September 23, 2026, the date designated as the closing date. The transaction was conducted pursuant to an Agreement and Plan of Merger dated June 28, 2026, under which Zymeworks Merger Sub 1, a wholly owned Cayman Islands subsidiary of Zymeworks, merged with and into Theravance, leaving Theravance as the surviving entity and a wholly owned subsidiary of Zymeworks.

Each outstanding Theravance ordinary share (par value $0.00001 per share) was canceled at the effective time and converted into the right to receive $17.00 in cash without interest, plus one CVR. Company options with an exercise price at or above $17.00 per share were canceled without any consideration. Outstanding restricted stock unit awards and performance stock unit awards were similarly canceled and converted into cash and CVR entitlements, as described in the filing, with applicable withholding taxes noted throughout.

The CVR Agreement, entered into on September 22, 2026, with Computershare Inc. and Computershare Trust Company, N.A. as rights agent, governs rights tied to ampreloxetine, a compound that was part of Theravance's portfolio. The filing discloses that CVRs are non-tradeable, carry no voting or dividend rights, represent no equity or ownership interest in Zymeworks or the surviving company, and are transferable only in limited circumstances. On the financing side, indirect Zymeworks subsidiaries - Clover Finance Trust and Clover Finance LLC - issued $350,000,000 in senior secured notes to OCM IP Healthcare Portfolio LP, with U.S. Bank Trust Company, National Association serving as administrative agent, collateral agent, and security trustee. The notes are guaranteed by four Theravance subsidiaries identified in the filing.

What Was Disclosed

Zymeworks reported the September 23, 2026 closing of its acquisition of Theravance Biopharma, the entry into a CVR Agreement linking former Theravance shareholders to potential ampreloxetine proceeds, and the issuance of $350,000,000 in senior secured notes by indirect Zymeworks subsidiaries.