Zymeworks raises 2026 guidance after closing Theravance acquisition

Zymeworks Inc. (NASDAQ: ZYME) completed its acquisition of Theravance Biopharma and issued updated full-year 2026 financial guidance, according to a company press release.

The company now expects total 2026 revenue of between $278 million and $292 million, including collaboration revenue from YUPELRI® (revefenacin). Adjusted EBITDA for the full year is projected to be between $114 million and $128 million, excluding the impact of any future transactions.

Under the merger agreement, Theravance Biopharma shareholders received $17.00 in cash per share at closing. The acquisition was financed through a $350 million non-recourse note from OMERS Life Sciences, with 75% of YUPELRI profit-share cash flows contractually assigned to OMERS to service the debt. Zymeworks also used approximately $217.5 million of its existing cash to fund the remaining purchase price.

Through Theravance Biopharma's collaboration with Viatris, Zymeworks is entitled to a 35% share of net U.S. profits from YUPELRI and royalties on net sales outside the United States. In the first half of 2026, total YUPELRI sales of $133.1 million generated collaboration revenue of $38.4 million for Theravance Biopharma. YUPELRI hospital sales grew 25% in the second quarter of 2026.

Zymeworks said it plans to retain the commercial organization responsible for YUPELRI hospital channel sales. The company also announced that Stuart Knight will join as Executive Vice President and Chief Information Officer, and Jesse Fecker, Ph.D., J.D., will join as Vice President, Intellectual Property.

The acquisition also provides Zymeworks with $2.5 billion in Irish tax attributes. The company noted that no value was assigned to these attributes in the transaction valuation or base case internal rate of return calculation.

A potential $100 million milestone payment related to TRELEGY ELLIPTA® is expected in the first quarter of 2027, contingent on applicable sales milestone conditions being met by December 31, 2026.

As of September 14, 2026, Zymeworks had approximately 71.2 million common shares outstanding. Since August 2024, the company has repurchased 10,571,316 shares at an average price of $20.02 per share, totaling $211.6 million.

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