- Irenic Capital Management, which owns ~4.2% of the outstanding shares of Theravance Biopharma ( NASDAQ: TBPH ), is calling on the company's board to undertake a strategic review, among other measures.
- Irenic is also asking for a cut in overhead costs, including what it calls "excessive share-based compensation."
- The stock is up ~6% in Monday morning trading.
- The private equity firm said it believes Theravance ( TBPH ) is worth $21 per share. It closed Friday at $9.87.
- According to Irenic, ~49% of the company's market value, or $4.80, is in cash, and another $6.29 of value can be attributed to the company’s stake in Yupelri. Another $4.80 is in milestone and royalty payments associated with Yupelri and GlaxoSmithKline's ( GSK ) Trelegy Ellipta.
- The firm also wants an immediate special dividend paid to shareholders due to Theravance’s ( TBPH ) excess cash of ~$300M.
- Seeking Alpha's Quant Rating views the company as a hold .
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Theravance large shareholder demands strategic review, cost cutting