GlaxoSmithKline in Deal With Theravance

GlaxoSmithKline, the largest maker of respiratory drugs, will pay as much as $545 million to Theravance Inc. to gain experimental lung treatments from the closely held U.S. biotechnology company.

Europe’s biggest drug maker will buy $50 million of preferred Theravance stock and provide as much as $495 million in performance-based payments.

Two of the drugs are in the first of three stages generally needed for regulatory approval, he said.

Glaxo will pool its asthma drug candidates with Theravance’s. The companies are looking for new once-a-day medicines for asthma and chronic obstructive pulmonary disease.

Theravance, based in South San Francisco, will get double-digit royalties on sales from any drug developed from the partnership, while Glaxo will get payments from the alliance if the experimental treatments from its labs are sold, the companies said.