GlaxoSmithKline to purchase more Theravance stock

GlaxoSmithKline (GSK) has announced plans to increase its holding in US biopharmaceutical company Theravance.

The firm intends to purchase 5.75 million shares of Theravance common stock at a price of $22.50 (14.40 pounds) per share, with the transaction due to close later today (November 29th).

This total investment of $129,375,000 will mean GSK owns 15,151,499 shares in Theravance, representing roughly 19 percent of the total outstanding capital stock of the company.

GSK, which entered a collaboration agreement with the California-based firm in November 2002, is currently working with Theravance to develop treatments for serious respiratory conditions such as asthma.

Moncef Slaoui, chairman of research and development at GSK, said the transaction "reflects the confidence we have in the Relovair programme and the wider late-stage respiratory pipeline that we have built up through the collaboration".

The fresh stock purchase was also welcomed by Rick Winningham, chief executive of Theravance.

GSK recently confirmed details of a new production alliance for vaccines with Russia's JSC Binnopharm.