Innoviva (INVA) 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	THERAVANCE INC
Entity Central Index Key	1,080,014
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		117,129,430
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	[1]
Current assets:
Cash and cash equivalents	$ 149,579	$ 96,800
Short-term marketable securities	79,684	143,698
Related party receivables from collaborative arrangements	13,997	10,550
Prepaid expenses and other current assets	697	1,134
Total current assets	243,957	252,182
Marketable securities	0	42,856
Property and equipment, net	276	324
Capitalized fees paid to a related party, net	201,279	208,191
Other assets	16,574	18,101
Total assets	462,086	521,654
Current liabilities:
Accounts payable	462	0
Payable to Theravance Biopharma, Inc.	150	1,056
Accrued personnel-related expenses	1,003	1,959
Accrued interest payable	7,925	7,551
Other accrued liabilities	1,789	2,108
Deferred revenue	885	1,082
Total current liabilities	12,214	13,756
Convertible subordinated notes, due 2023	255,109	255,109
Non-recourse notes, due 2029	483,363	470,527
Deferred rent	102	105
Other long-term liabilities	1,748	1,718
Deferred revenue	$ 3,542	$ 3,788
Commitments and contingencies (Notes 3, 6 and 9)
Stockholders' deficit:
Preferred stock: $0.01 par value, 230 shares authorized, no shares issued and outstanding
Common stock: $0.01 par value, 200,000 shares authorized, 117,174 and 116,445 shares issued as of June 30, 2015 and December 31, 2014, respectively	$ 1,172	$ 1,164
Treasury stock: 150 shares as of June 30, 2015 and December 31, 2014	(3,263)	(3,263)
Additional paid-in capital	1,400,253	1,452,504
Accumulated other comprehensive loss	(10)	(87)
Accumulated deficit	(1,692,144)	(1,673,667)
Total stockholders' deficit	(293,992)	(223,349)
Total liabilities and stockholders' deficit	$ 462,086	$ 521,654
[1]	Condensed consolidated balance sheet at December 31, 2014 has been derived from audited consolidated financial statements.

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	230,000	230,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	117,174,000	116,445,000
Treasury stock held	150,000	150,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Royalty revenue from a related party, net of amortization for capitalized fees paid to a related party of $3,456 and $2,598 for the three months ended June 30, 2015 and 2014 and $6,912 and $4,378 for the six months ended June 30, 2015 and 2014	$ 10,434	$ 663	$ 17,108	$ (387)
Revenue from collaborative arrangements from a related party, net	221	271	443	541
Total net revenue	10,655	934	17,551	154
Operating expenses:
Research and development	638	2,125	1,350	4,812
General and administrative	4,909	8,603	10,348	19,859
Total operating expenses	5,547	10,728	11,698	24,671
Income (loss) from operations	5,108	(9,794)	5,853	(24,517)
Other income (expense), net	(16)	83	1,162	80
Interest income	85	165	201	353
Interest expense	(12,987)	(10,327)	(25,693)	(11,971)
Loss from continuing operations before income taxes	(7,810)	(19,873)	(18,477)	(36,055)
Income tax expense	0	(278)	0	(278)
Loss from continuing operations, net of tax	(7,810)	(20,151)	(18,477)	(36,333)
Loss from discontinued operations (Notes 1 and 11)	0	(43,413)	0	(94,934)
Net loss	$ (7,810)	$ (63,564)	$ (18,477)	$ (131,267)
Basic and diluted net loss per share:
Continuing operations, net of tax (in dollars per share)	$ (0.07)	$ (0.18)	$ (0.16)	$ (0.33)
Discontinued operations (in dollars per share)	0	(0.39)	0	(0.86)
Basic and diluted net loss per share (in dollars per share)	(0.07)	(0.57)	(0.16)	(1.19)
Cash dividends declared per common share (in dollars per share)	$ 0.25	$ 0	$ 0.50	$ 0
Shares used to compute basic and diluted net loss per share (in shares)	115,329	110,974	115,096	110,419

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Amortization of capitalized fees paid to a related party	$ 3,456	$ 2,598	$ 6,912	$ 4,378

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (7,810)	$ (63,564)	$ (18,477)	$ (131,267)
Other comprehensive income:
Unrealized gain on marketable securities, net	2	3,535	1,228	3,544
Less: Realized gain on marketable securities, net	0	0	(1,151)	0
Comprehensive loss	$ (7,808)	$ (60,029)	$ (18,400)	$ (127,723)

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015		Jun. 30, 2014
Cash flows from operating activities
Net loss	$ (18,477)		$ (131,267)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,966		6,190
Stock-based compensation	3,755		21,281
Amortization of premium on short-term investments	392		1,412
Interest added to the principal balance of the non-recourse term notes due 2029	12,836		0
Realized gain on sale of marketable securities, net	(1,204)		0
Amortization of debt issuance costs	1,527		0
Other non-cash items	(2)		(2)
Changes in operating assets and liabilities:
Account receivable	0		74
Receivables from collaborative arrangements	(3,447)		(294)
Prepaid expenses and other current assets	437		(177)
Inventories	0		(1,908)
Other assets	0		(411)
Accounts payable	462		(5,832)
Payable to Theravance Biopharma, Inc., net	(906)		(1,738)
Accrued personnel-related expenses, accrued clinical and development expenses, and other accrued liabilities	(1,709)		1,874
Accrued interest payable	374		8,213
Deferred rent	(3)		183
Deferred revenue	(443)		(2,640)
Net cash provided by (used in) operating activities	558		(105,042)
Cash flows from investing activities
Purchases of property and equipment	(6)		(556)
Purchases of marketable securities	(8,457)		(142,861)
Maturities of marketable securities	59,120		241,173
Sales of marketable securities	57,098		5,000
Increase in intangible assets	0		(100,000)
Payments received on notes receivable	0		140
Net cash provided by investing activities	107,755		2,896
Cash flows from financing activities
Cash and cash equivalents contributed to Theravance Biopharma, Inc.	0		(277,541)
Payments of cash dividends to stockholders	(58,045)		0
Proceeds from issuances of common stock, net	2,511		23,786
Change in restricted cash	0		(14,234)
Proceeds from issuances of note payable, net of debt issuance costs	0		434,677
Net cash (used in) provided by financing activities	(55,534)		166,688
Net increase in cash and cash equivalents	52,779		64,542
Cash and cash equivalents at beginning of period	96,800	[1]	143,510
Cash and cash equivalents at end of period	149,579		208,052
Supplemental disclosure of cash flow information
Cash paid for interest	10,954		3,055
Supplemental disclosure of noncash information
Contribution of net assets, excluding cash and cash equivalents to Theravance Biopharma, Inc.	0		125,337
Guarantee issued in connection with the Spin-Off (Note 9)	$ 0		$ 1,300
[1]	Condensed consolidated balance sheet at December 31, 2014 has been derived from audited consolidated financial statements.

Description of Operations and S

Description of Operations and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Description of Operations and Summary of Significant Accounting Policies
Description of Operations and Summary of Significant Accounting Policies	1. Description of Operations and Summary of Significant Accounting Policies Description of Operations Theravance, Inc. (“Theravance”, the “Company”, or “we” and other similar pronouns) is focused on bringing compelling new medicines to patients in areas of unmet need by leveraging its significant expertise in the development, commercialization and financial management of bio-pharmaceuticals. Theravance’s portfolio is anchored by the respiratory assets partnered with Glaxo Group Limited (“GSK”), including RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®, which were jointly developed by Theravance and GSK. Under the Long-Acting Beta 2 Agonist (“LABA”) Collaboration Agreement and the Strategic Alliance Agreement with GSK (referred to herein as the “GSK Agreements”), Theravance is eligible to receive the associated royalty revenues from RELVAR ® /BREO ® ELLIPTA ® , ANORO® ELLIPTA ® and if approved and commercialized, VI monotherapy. Theravance is also entitled to 15% of any future payments made by GSK under its agreements originally entered into with us, and since assigned to Theravance Respiratory Company, LLC (“TRC”), relating to the combination FF/UMEC/VI and the Bifunctional Muscarinic Antagonist-Beta 2 Agonist (“MABA”) program, as monotherapy and in combination with other therapeutically active components, such as an inhaled corticosteroid, and any other product or combination of products that may be discovered and developed in the future under the LABA Collaboration Agreement (“LABA Collaboration”), which has been assigned to TRC other than RELVAR ® /BREO ® ELLIPTA ® , ANORO® ELLIPTA ® and VI monotherapy. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of our financial position, results of operations, comprehensive loss and cash flows. The interim results are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2015 or any other period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2015. Business Separation On June 1, 2014, we separated our biopharmaceutical research and drug development operations from our late-stage partnered respiratory assets by transferring our research and drug development operations into our then wholly-owned subsidiary, Theravance Biopharma, Inc. (“Theravance Biopharma”). We contributed $393.0 million of cash, cash equivalents and marketable securities to Theravance Biopharma and all outstanding shares of Theravance Biopharma were then distributed to Theravance stockholders as a pro-rata dividend distribution on June 2, 2014 by issuing one ordinary share of Theravance Biopharma for every 3.5 shares of our common stock to stockholders of record on May 15, 2014 (the “Spin-Off”). The Spin-Off resulted in Theravance Biopharma operating as an independent, publicly traded company. The results of operations for the former research and drug development operations conducted by us and by Theravance Biopharma until June 1, 2014 are included as part of this report as discontinued operations for the three and six months ended June 30, 2014. Refer to Note 11 “Discontinued Operations” for further information. Variable Interest Entities We evaluate our ownership, contractual and other interest in entities to determine if they are variable interest entities (“VIE”), whether we have a variable interest in those entities and the nature and extent of those interests. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. We consolidate the financial results of TRC, which we have determined to be a VIE, because we have the power to direct the economically significant activities of TRC and the obligation to absorb losses of, or the right to receive benefits from, TRC. The financial position and results of operations of TRC are not material for the three and six months ended June 30, 2015 and 2014 and as of June 30, 2015 and December 31, 2014. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring an entity to recognize the amount of revenue to which it expects to be entitled to in exchange for the transfer of promised goods or services to customers. The new standard will replace nearly all existing revenue recognition guidance under GAAP when it becomes effective. In July 2015, the FASB decided to defer the effective date by one year. Thus, the new standard will be effective for us beginning January 1, 2018, at which time we may adopt the new standard under either the full retrospective method or the modified retrospective method. Early adoption on or after January 1, 2017 would be permitted. We are currently evaluating the effect that the new standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest , to simplify the presentation of debt issuance costs. This standard amends existing guidance to require the presentation of debt issuance costs associated with term loans in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It will be effective for us on January 1, 2016, with early adoption permitted. We plan to adopt ASU 2015-03 on January 1, 2016. Upon adoption of ASU 2015-03, we will apply the guidance retrospectively to all periods presented and classify our debt issuance costs, which are currently included in other assets in the condensed consolidated financial statements, as a deduction to our long-term debt.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2015
Net Loss per Share
Net Loss per Share	2. Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding, less Restricted Stock Awards (“RSAs”) subject to forfeiture. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding, assuming dilutive potential common shares had been issued for other dilutive securities. For the three and six months ended June 30, 2015 and 2014, diluted and basic net loss per common share were identical since potential common shares were excluded from the calculation, as their effect was anti-dilutive. Anti-Dilutive Securities The following common equivalent shares were not included in the computation of diluted net loss per share because their effect was anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015(1) 2014 2015(2) 2014 Outstanding options and awards granted under equity incentive plan and employee stock purchase plan Unvested RSAs Shares issuable upon conversion of convertible subordinated notes (1) Includes 4.2 million options, 0.4 million restricted stock units, and 1.1 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off during the three months ended June 30, 2015. Subsequent to the Spin-Off, stock-based compensation expense associated with the awards held by Theravance Biopharma employees granted prior to the Spin-Off is recognized by Theravance Biopharma. (2) Includes 4.4 million options, 0.5 million restricted stock units, and 1.2 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off during the six months ended June 30, 2015. Subsequent to the Spin-Off, stock-based compensation expense associated with the awards held by Theravance Biopharma employees granted prior to the Spin-Off is recognized by Theravance Biopharma.

Collaborative Arrangements

Collaborative Arrangements	6 Months Ended
	Jun. 30, 2015
Collaborative Arrangements
Collaborative Arrangements	3. Collaborative Arrangements Net Revenue from Collaborative Arrangements Net revenue from collaborative arrangements from continuing operations relates to our collaborative arrangement with GSK. Net revenue from other collaborative arrangements is reflected as discontinued operations in the condensed consolidated statements of operations. Refer to Notes 1 and 11, “Description of Operations and Summary of Significant Accounting Policies” and “Discontinued Operations” for further information. Net revenue recognized under our GSK Agreements was as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Royalties from a related party $ $ $ $ Less: amortization of capitalized fees paid to a related party ) ) ) ) Royalty revenue ) Strategic alliance - MABA program Total net revenue from GSK $ $ $ $ LABA Collaboration As a result of the launch and approval of RELVAR ® /BREO ® ELLIPTA ® and ANORO ® ELLIPTA ® in the U.S., Japan and Europe, in accordance with the GSK Agreements, we were obligated to pay milestone fees to GSK totaling $220.0 million, all of which was paid as of December 31, 2014. Although we have no further milestone payment obligations to GSK, we continue to have ongoing development and commercialization activities under the GSK Agreements that are expected to continue over the life of the agreements. The milestone fees paid to GSK were recognized as capitalized fees paid to a related party, which are being amortized over their estimated useful lives commencing upon the commercial launch of the product. We are entitled to receive annual royalties from GSK on sales of RELVAR ® /BREO ® ELLIPTA ® as follows: 15% on the first $3.0 billion of annual global net sales and 5% for all annual global net sales above $3.0 billion. Sales of single-agent LABA medicines and combination medicines would be combined for the purposes of this royalty calculation. For other products combined with a LABA from the LABA Collaboration, such as ANORO ® ELLIPTA ® , royalties are upward tiering and range from 6.5% to 10%. Amortization expense resulting from the milestone fees paid to GSK, which are recognized as capitalized fees paid to a related party, is a non-cash reduction to royalty revenue. When amortization expense exceeds amounts recognized for royalty revenue, negative revenue would be reported in our condensed consolidated statements of operations. Agreements Entered into with GSK in Connection with the Spin-Off On March 3, 2014, in contemplation of the Spin-Off, we, Theravance Biopharma and GSK entered into a series of agreements, including amendments to the GSK Agreements, clarifying how the companies would implement the Spin-Off and operate following the Spin-Off. Pursuant to a three-way master agreement, by and among us, Theravance Biopharma and GSK, we agreed to sell a certain number of Theravance Biopharma shares withheld from a taxable dividend of Theravance Biopharma shares to GSK. After such Theravance Biopharma shares were sent to the transfer agent, we agreed to purchase the Theravance Biopharma shares from the transfer agent, rather than have them sold on the open market, in order to satisfy tax withholdings. GSK had a right to purchase these shares of Theravance Biopharma from us, but this right expired unexercised. During the six months ended June 30, 2015, we sold all 436,802 ordinary shares of Theravance Biopharma that we held at December 31, 2014. Refer to Note 4 “Available-for-Sale Securities and Fair Value Measurements” for further information. GSK Contingent Payments and Revenue The potential future contingent payments receivable related to the MABA program of $363.0 million are not deemed substantive milestones due to the fact that the achievement of the event underlying the payment predominantly relates to GSK’s performance of future development, manufacturing and commercialization activities for product candidates after licensing the program.

Available-for-Sale Securities a

Available-for-Sale Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Available-for-Sale Securities and Fair Value Measurements
Available-for-Sale Securities and Fair Value Measurements	4. Available-for-Sale Securities and Fair Value Measurements Available-for-Sale Securities The classification of available-for-sale securities in the condensed consolidated balance sheets is as follows: (In thousands) June 30, 2015 December 31, 2014 Cash and cash equivalents $ $ Short-term marketable securities Marketable securities — Total $ $ The estimated fair value of available-for-sale securities is based on quoted market prices for these or similar investments that were based on prices obtained from a commercial pricing service. Available-for-sale securities are summarized below: June 30, 2015 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government securities $ $ $ — $ U.S. government agencies — Corporate notes ) Commercial paper — — Money market funds — — Total $ $ $ ) $ December 31, 2014 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Other Than Temporary Impairment Loss Estimated Fair Value U.S. government securities $ $ $ — $ — $ U.S. government agencies ) — Corporate notes ) — Commercial paper — — — Ordinary shares of Theravance Biopharma — — ) Money market funds — — — Total $ $ $ ) $ ) $ At June 30, 2015, all of the available-for-sale securities had contractual maturities within one year and the weighted average duration of marketable securities was approximately four months. We do not intend to sell the investments that are in an unrealized loss position, and it is unlikely that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. We have determined that the gross unrealized losses on our marketable securities at June 30, 2015 were temporary in nature. All marketable securities with unrealized losses at June 30, 2015 have been in a loss position for less than twelve months. During the six months ended June 30, 2015, we recognized a gain of $1.2 million from the sale of all of the ordinary shares of Theravance Biopharma that we held at December 31, 2014, which is included in other income (expense), net in the condensed consolidated statement of operations. In addition, we sold other available-for-sale securities totaling $49.4 million, and the related realized gains and losses were not significant during the six months ended June 30, 2015. Fair Value Measurements Our available-for-sale securities are measured at fair value on a recurring basis and our debt is carried at the amortized cost basis. The estimated fair values were as follows: Estimated Fair Value Measurements at Reporting Date Using: Types of Instruments Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets at June 30, 2015 U.S. government securities $ $ — $ — $ U.S. government agencies — — Corporate notes — — Commercial paper — — Money market funds — — Total assets measured at estimated fair value $ $ $ — $ Liabilities at June 30, 2015 Convertible subordinated notes due 2023 $ — $ $ — $ Non-recourse notes due 2029 — — Total fair value of liabilities $ — $ $ — $ Estimated Fair Value Measurements at Reporting Date Using: Types of Instruments Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 U.S. government securities $ $ — $ — $ U.S. government agencies — — Corporate notes — — Commercial paper — — Ordinary shares of Theravance Biopharma — — Money market funds — — Total assets measured at estimated fair value $ $ $ — $ Liabilities at December 31, 2014 Convertible subordinated notes due 2023 $ — $ $ — $ Non-recourse notes due 2029 — — Total fair value of liabilities $ — $ $ — $ The fair value of our marketable securities classified within Level 2 were derived from observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The fair value of our convertible subordinated notes due 2023 and non-recourse notes due 2029 is based on recent trading prices of the instruments, if applicable, or pricing models that utilize current observable market characteristics for similar types of instruments.

Capitalized Fees paid to a Rela

Capitalized Fees paid to a Related Party	6 Months Ended
	Jun. 30, 2015
Capitalized Fees paid to a Related Party
Capitalized Fees paid to a Related Party	5. Capitalized Fees paid to a Related Party Capitalized fees paid to a related party, which consist of registrational and launch-related milestone fees paid to GSK, were as follows: June 30, 2015 December 31, 2014 Weighted Average Remaining Amortization Gross Net Gross Net Period Carrying Accumulated Carrying Carrying Accumulated Carrying (In thousands) (Years) Value Amortization Value Value Amortization Value Approval and launch related milestone payments under the LABA Collaboration $ $ ) $ $ $ ) $ These milestone fees are being amortized over their estimated useful lives commencing upon the commercial launch of the product in their respective regions with the amortization expense recorded as a reduction in revenue from collaborative arrangements. Additional information regarding these milestone fees is included in Note 3, “Collaborative Arrangements”. Amortization expense for the three and six months ended June 30, 2015 was $3.5 million and $6.9 million, respectively. Amortization expense for the three and six months ended June 30, 2014 was $2.6 million and $4.4 million, respectively. As of June 30, 2015, the remaining estimated amortization expense is $6.9 million for 2015, $13.8 million for each of the years from 2016 to 2019, and $139.2 million thereafter.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Stock-Based Compensation	6. Stock-Based Compensation Equity Incentive Plan The 2012 Equity Incentive Plan (the “2012 Plan”) provides for the granting of incentive stock options, nonstatutory stock options, RSAs, restricted stock units (“RSUs”) and stock appreciation rights to employees, non-employee directors and consultants. As of June 30, 2015, the total shares remaining available for issuance under the 2012 Plan were 3,140,356. Employee Stock Purchase Plan Under the 2004 Employee Stock Purchase Plan (the “ESPP”), our employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock at the beginning of the offering period or at the end of each applicable purchase period. The ESPP provides for consecutive and overlapping offering periods of 24 months in duration, with each offering period composed of four consecutive six-month purchase periods. The purchase periods end on either May 15 or November 15. ESPP contributions are limited to a maximum of 15% of an employee’s eligible compensation. The maximum number of shares that an employee may purchase in any purchase period is 2,500. An employee may not purchase shares with a value greater than $25,000 in any calendar year. As of June 30, 2015, total shares remaining available for issuance under the ESPP were 278,971. Performance-Contingent RSAs Since 2011, the Compensation Committee of our Board of Directors (the “Compensation Committee”) have approved grants of performance-contingent RSAs to senior management and a non-executive officer. Generally, these awards have dual triggers of vesting based upon the achievement of certain performance goals by a pre-specified date, as well as a requirement for continued employment. Recognition of stock-based compensation expense begins when the performance goals are deemed probable of achievement. Included in these performance-contingent RSAs is the grant of 1,290,000 special long-term retention and incentive performance-contingent RSAs to senior management in 2011. The awards have dual triggers of vesting based upon the achievement of certain performance conditions over a six-year timeframe from 2011 through December 31, 2016 and require continued employment. As of March 31, 2014, we determined that the achievement of the requisite performance conditions for vesting of the first tranche of these awards was probable and the total stock-based compensation expense of $7.0 million for the first tranche was fully recognized through May 2014. In connection with the Spin-Off, our Compensation Committee approved the modification of the remaining tranches related to these awards as the performance conditions associated with the remaining portions of these awards were unlikely to be consistent with the new strategies of each company following the Spin-Off. The modification acknowledged the Spin-Off and permitted recognition of achievement of certain of the original performance conditions that were met prior to the Spin-Off, triggering service-based vesting for a portion of the equity awards, for which $3.8 million was recognized by us during the twelve-month period that commenced in June 2014. The remaining 63,000 RSAs for which service-based vesting was not triggered at the time of the Spin-Off remain subject to new performance conditions (as well as the original service conditions). In addition, the RSAs for which both the performance and service-based conditions were not achieved prior to the Spin-Off were entitled to the pro rata dividend distribution made by Theravance on June 2, 2014 of one ordinary share of Theravance Biopharma for every 3.5 shares of Theravance common stock subject to their awards, which will also be subject to the same new performance and service conditions as the original RSAs to which they relate. As of June 30, 2015, we determined that the achievement of the requisite performance conditions was not probable and, as a result, no compensation cost was recognized for the remaining equity awards. Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of operations as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Research and development $ $ $ $ General and administrative Stock-based compensation from continuing operations Stock-based compensation from discontinued operations — — Total stock-based compensation expense $ $ $ $ As of June 30, 2015, unrecognized compensation expense, net of expected forfeitures for awards expected to vest, was as follows: $1.9 million related to unvested stock options; $2.6 million related to unvested RSUs; and $8.2 million related to unvested RSAs (including performance-contingent RSAs for which the performance milestones were determined to be probable of achievement). At the time of the Spin-Off, all outstanding stock options, RSUs and RSAs held by former employees and directors, who transferred to Theravance Biopharma, were retained by them. As the vesting of these options and awards is based on continuing employment or service with Theravance Biopharma, all stock-based compensation expense associated with these options and awards is recognized by Theravance Biopharma. Valuation Assumptions No options were granted for the three and six months ended June 30, 2015. The range of assumptions used to estimate fair value of employee stock options granted during the three and six months ended June 30, 2014 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Risk-free interest rate 1.6%-2.1% 1.6%-2.1% Expected term (in years) 5-6 5-6 Volatility 52%-60% 52%-60% Dividend yield 0%-0.4% 0%-0.4% Weighted-average estimated fair value of stock options granted $ $

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2015
Long-Term Debt.
Long-Term Debt	7. Long-Term Debt Our long-term debt consists of: (In thousands) June 30, 2015 December 31, 2014 Convertible Subordinated Notes due 2023 $ $ Non-Recourse Notes Payable due 2029 Total Long-Term Debt $ $ Convertible Subordinated Notes Due 2023 In January 2013, we completed an underwritten public offering of $287.5 million aggregate principal amount of unsecured convertible subordinated notes, which will mature on January 15, 2023 (the “2023 Notes”). The financing raised proceeds, net of debt issuance costs, of approximately $281.2 million, less $36.8 million to purchase two privately-negotiated capped call option transactions in connection with the issuance of the notes. The 2023 Notes bear interest at the rate of 2.125% per year that is payable semi-annually in arrears in cash on January 15 and July 15 of each year, beginning on July 15, 2013. The 2023 Notes were convertible, at the option of the holder, into shares of our common stock at an initial conversion rate of 35.9903 shares per $1,000 principal amount of the 2023 Notes, subject to adjustment in certain circumstances, which represents an initial conversion price of approximately $27.79 per share. Following the Spin-Off of Theravance Biopharma, a number of adjustments to the initial conversion rate have been made as described below. Holders of the 2023 Notes will be able to require us to repurchase some or all of their notes upon the occurrence of a Change of Control or a Termination of Trading (as contractually defined) following the original issuance of the 2023 Notes at 100% of the principal amount of the notes being repurchased plus accrued and unpaid interest. We may not redeem the 2023 Notes prior to their stated maturity date. In connection with the offering of the 2023 Notes, we entered into two privately-negotiated capped call option transactions with a single counterparty. The capped call option transaction is an integrated instrument consisting of a call option on our common stock purchased by us with a strike price equal to the initial conversion price of $27.79 per share for the underlying number of shares and a cap price of $38.00 per share, both of which are subject to adjustments consistent with the 2023 Notes. The cap component is economically equivalent to a call option sold by us for the underlying number of shares with an initial strike price of $38.00 per share. As an integrated instrument, the settlement of the capped call coincides with the due date of the convertible debt. At settlement, we would receive from our hedge counterparty a number of shares of our common shares that would range from zero, if the stock price was below $27.79 per share, to a maximum of 2,779,659 shares, if the stock price is above $38.00 per share. However, if the market price of our common stock, as measured under the terms of the capped call transactions, exceeds $38.00 per share, there is no incremental anti-dilutive benefit from the capped call. In accordance with the agreement for the 2023 Notes, the conversion rate was adjusted as a result of the completion of the Spin-Off of Theravance Biopharma. The conversion rate was adjusted based on the conversion rate immediately prior to the record date for the Spin-Off and the average of the stock dividend distributed to our common stockholders and our stock prices. This resulted in an adjusted conversion rate of 46.9087 shares per $1,000 principal amount of the 2023 Notes, which represents an adjusted conversion price of approximately $21.32 per share. As a result of the conversion rate adjustment, the capped call strike price and cap price were also adjusted accordingly to $21.32 and $29.16, respectively. On July 15, 2014, certain holders of the 2023 Notes converted their notes into 1,519,402 shares of our common stock at the adjusted conversion price of $21.32 per share. In connection with the partial conversion of the 2023 Notes, we received 149,645 shares of our common stock from our capped call option counterparty and the shares of common stock received were recorded as treasury stock. In connection with the payments of subsequent cash dividends through June 30, 2015, the adjusted conversion rate with respect to our 2023 Notes was further adjusted from 46.9087 shares of our common stock per $1,000 principal amount of the 2023 Notes to 49.6963 shares of our common stock per $1,000 principal amount of the 2023 Notes, which represents an adjusted conversion price of approximately $20.12 per share. As a result of the conversion rate adjustment, the capped call strike price and cap price were also adjusted accordingly to $20.12 and $27.52. Non-Recourse Notes Due 2029 In April 2014, we entered into certain note purchase agreements relating to the private placement of $450.0 million aggregate principal amount of non-recourse fixed rate term notes due 2029 (the “2029 Notes”) issued by our wholly-owned subsidiary. The 2029 Notes are secured by a security interest in a segregated bank account established to receive 40% of royalties due to us under the LABA Collaboration with GSK commencing on April 1, 2014 and ending upon the earlier of full repayment of principal or May 15, 2029. The amounts in the segregated bank account can only be used to make interest and principal payments on the 2029 Notes. At June 30, 2015, the balance of the segregated bank account was not material. The 2029 Notes bear an annual interest rate of 9%, with interest and principal paid quarterly beginning November 15, 2014. The 2029 Notes may be redeemed at any time prior to maturity, in whole or in part, at specified redemption premiums. Prior to May 15, 2016, in the event that the specified portion of royalties received in a quarter is less than the interest accrued for the quarter, the principal amount of the 2029 Notes will increase by the interest shortfall amount for that period. Since issuance, $33.4 million of interest expense has been added to the principal balance of the 2029 Notes, of which $6.4 million and $12.8 million was added during the three and six months ended June 30, 2015. No interest expense was added to the principal during the three and six months ended June 30, 2014. Since the principal and interest payments on the 2029 Notes are based on royalties from GSK for product sales recorded, which will vary from quarter to quarter and are unknown to us, the 2029 Notes may be repaid prior to the final maturity date in May 2029. In connection with the sale of the 2029 Notes, we incurred approximately $15.3 million in debt issuance costs, which are being amortized to interest expense over the estimated life of the 2029 Notes.

Shareholders' Deficit

Shareholders' Deficit	6 Months Ended
	Jun. 30, 2015
Shareholders' Deficit
Shareholders' Deficit	8. Shareholders’ Deficit For the six months ended June 30, 2015, options to purchase 111,156 shares of our common stock were exercised at a weighted-average exercise price of $13.75 per share, for total cash proceeds of approximately $1.5 million. For the six months ended June 30, 2014, options to purchase 79,000 shares of our common stock were exercised at a weighted-average exercise price of $12.89 per share, for total cash proceeds of approximately $1.0 million. During the six months ended June 30, 2015, GSK purchased 178,253 shares of our common stock pursuant to its periodic “top-up” rights under our Amended and Restated Governance Agreement, dated as of June 4, 2004, as amended, among us, GSK and certain GSK affiliates, for an aggregate purchase price of approximately $3.0 million. On February 20, 2015 our Board of Directors declared a quarterly dividend of $0.25 per share of common stock to stockholders of record as of the close of business on March 12, 2015. This dividend was paid on March 31, 2015. On April 24, 2015, our Board of Directors declared a quarterly dividend of $0.25 per share of common stock to stockholders of record as of the close of business on June 12, 2015. This dividend was paid to our stockholders on June 30, 2015. During the three and six months ended June 30, 2015, we paid $29.2 million and $58.0 million in dividends. Unvested RSAs and certain unvested RSUs as of the record date are also entitled to dividends, which will only be paid when the RSAs and such RSUs vest and are released. For further information on the impact of the cash dividend payments on the 2023 Notes, refer to Note 7, “Long-Term Debt”.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Lease Guarantee Upon the Spin-Off, our facility leases in South San Francisco, California were assigned to Theravance Biopharma. However, if Theravance Biopharma were to default on its lease obligations, we would be held liable by the landlord and thus, we have in substance guaranteed the lease payments for these facilities. We would also be responsible for lease-related payments including utilities, property taxes, and common area maintenance, which may be as much as the actual lease payments. As of June 30, 2015, the total remaining lease payments, which run through May 2020, were $30.5 million. The carrying value of this lease guarantee was $1.3 million as of June 30, 2015 and is reflected in other long-term liabilities in our condensed consolidated balance sheet. Special Long-Term Retention and Incentive Cash Awards Program In 2011, we granted special long-term retention and incentive cash bonus awards to certain employees. The awards have dual triggers of vesting based upon the achievement of certain performance conditions over a six-year timeframe from 2011 through December 31, 2016 and continued employment. As of March 31, 2014, we determined that the achievement of the requisite performance conditions for the first tranche of these awards was probable and, as a result, $9.1 million of cash bonus expense was recognized for the three months ended March 31, 2014, the majority of which is included in discontinued operations in the condensed consolidated statements of operations. In May 2014, the total cash bonus of $9.5 million for the first tranche was paid. In connection with the Spin-Off, the Compensation Committee approved the modification of the remaining tranches related to these awards as the performance conditions associated with the remaining portions of these awards were unlikely to be consistent with the new strategies of each company following the Spin-Off. The modification acknowledged the Spin-Off and permitted recognition of achievement of certain of the original performance conditions that were met prior to the Spin-Off, triggering service-based vesting for a portion of the cash awards. The amount due by us under these modified cash bonus awards of $0.5 million was fully paid as of June 30, 2015. The remaining tranches of the cash awards were forfeited.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2015
Income Taxes
Income Taxes	10. Income Taxes We did not record a provision for income taxes for the three and six months ended June 30, 2015. T he deferred tax assets remain fully offset by a valuation allowance or uncertain tax position liabilities. As a part of the overall Spin-Off transaction on June 1, 2014, certain assets that were transferred by us to Theravance Biopharma resulted in taxable transfers pursuant to Section 367 of the Internal Revenue Code of 1986, as amended (the “Code”), or other applicable provisions of the Code and Treasury Regulations. The taxable gain attributable to the transfer of the certain assets to Theravance Biopharma was the excess of the fair market value of each asset transferred over our adjusted tax basis in such asset. The U.S. federal income tax gain on transfer of the assets to Theravance Biopharma was approximately $400 million. This taxable income was substantially offset by our net operating loss from 2014 and carryforwards from prior years resulting in an income tax expense of approximately $0.3 million for the three and six months ended June 30, 2014.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2015
Discontinued Operations.
Discontinued Operations	11. Discontinued Operations On June 1, 2014, we separated our research and drug development businesses from our late-stage partnered respiratory assets. For further information on the Spin-Off, refer to Note 1 “Description of Operations and Summary of Significant Accounting Policies”. The significant components of the research and drug development operations, which are presented as discontinued operations on the condensed consolidated statements of operations, were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net revenues (1) $ — $ $ — $ Loss from discontinued operations (2) — ) — ) (1) Net revenues primarily consist of revenue from collaborative arrangements and product sales. Revenue from collaborative arrangements was recognized from our agreement with R-Pharm CJSC, which was transferred to Theravance Biopharma as a part of the Spin-Off. Product sales were generated from sales of VIBATIV ® in the U.S. through a limited number of distributors, and title and risk of loss transfer upon receipt by these distributors. VIBATIV® was transferred to Theravance Biopharma as part of the Spin-Off. Healthcare providers ordered VIBATIV ® through these distributors. Commencing in the first quarter of 2014, revenue on the sale of VIBATIV ® was recorded on a sell-through basis, once the distributors sold the product to healthcare providers. Product sales were recorded net of estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions. (2) Included in the loss from discontinued operations for the three and six months ended June 30, 2014 are reimbursements of research and development costs from our former collaborative arrangements, excluding GSK, which we accounted for as reductions to research and development expense. Reimbursement of research and development costs from discontinued operations from our collaborative arrangements was $22,000 and $0.1 million for the three and six months ended June 30, 2014. In addition, the loss from discontinued operations includes the additional stock-based compensation and cash bonus expense recognized due to the achievement of performance conditions under a special long-term retention and incentive equity and cash bonus awarded to certain employees in 2011. Refer to Note 6 “Stock-Based Compensation” and Note 9 “Commitment and Contingencies” for further information.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2015
Subsequent Event.
Subsequent Event	12. Subsequent Event On July 24, 2015, our Board of Directors declared a quarterly dividend of $0.25 per share of common stock to stockholders of record as of the close of business on September 10, 2015. Unvested RSAs and certain RSUs as of the record date are also entitled to dividends, which will only be paid when the RSAs and such RSUs vest and are released. The dividend will be paid on September 30, 2015. On July 13, 2015, Theravance announced that we had appointed Michael E. Faerm to be our new Chief Business Officer.

Description of Operations and20

Description of Operations and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2015
Description of Operations and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In our opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of our financial position, results of operations, comprehensive loss and cash flows. The interim results are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2015 or any other period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2015.
Business Separation	Business Separation On June 1, 2014, we separated our biopharmaceutical research and drug development operations from our late-stage partnered respiratory assets by transferring our research and drug development operations into our then wholly-owned subsidiary, Theravance Biopharma, Inc. (“Theravance Biopharma”). We contributed $393.0 million of cash, cash equivalents and marketable securities to Theravance Biopharma and all outstanding shares of Theravance Biopharma were then distributed to Theravance stockholders as a pro-rata dividend distribution on June 2, 2014 by issuing one ordinary share of Theravance Biopharma for every 3.5 shares of our common stock to stockholders of record on May 15, 2014 (the “Spin-Off”). The Spin-Off resulted in Theravance Biopharma operating as an independent, publicly traded company. The results of operations for the former research and drug development operations conducted by us and by Theravance Biopharma until June 1, 2014 are included as part of this report as discontinued operations for the three and six months ended June 30, 2014. Refer to Note 11 “Discontinued Operations” for further information.
Variable Interest Entities	Variable Interest Entities We evaluate our ownership, contractual and other interest in entities to determine if they are variable interest entities (“VIE”), whether we have a variable interest in those entities and the nature and extent of those interests. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. We consolidate the financial results of TRC, which we have determined to be a VIE, because we have the power to direct the economically significant activities of TRC and the obligation to absorb losses of, or the right to receive benefits from, TRC. The financial position and results of operations of TRC are not material for the three and six months ended June 30, 2015 and 2014 and as of June 30, 2015 and December 31, 2014.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring an entity to recognize the amount of revenue to which it expects to be entitled to in exchange for the transfer of promised goods or services to customers. The new standard will replace nearly all existing revenue recognition guidance under GAAP when it becomes effective. In July 2015, the FASB decided to defer the effective date by one year. Thus, the new standard will be effective for us beginning January 1, 2018, at which time we may adopt the new standard under either the full retrospective method or the modified retrospective method. Early adoption on or after January 1, 2017 would be permitted. We are currently evaluating the effect that the new standard will have on our consolidated financial statements and related disclosures. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest , to simplify the presentation of debt issuance costs. This standard amends existing guidance to require the presentation of debt issuance costs associated with term loans in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It will be effective for us on January 1, 2016, with early adoption permitted. We plan to adopt ASU 2015-03 on January 1, 2016. Upon adoption of ASU 2015-03, we will apply the guidance retrospectively to all periods presented and classify our debt issuance costs, which are currently included in other assets in the condensed consolidated financial statements, as a deduction to our long-term debt.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Net Loss per Share
Schedule of anti-dilutive securities	Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015(1) 2014 2015(2) 2014 Outstanding options and awards granted under equity incentive plan and employee stock purchase plan Unvested RSAs Shares issuable upon conversion of convertible subordinated notes (1) Includes 4.2 million options, 0.4 million restricted stock units, and 1.1 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off during the three months ended June 30, 2015. Subsequent to the Spin-Off, stock-based compensation expense associated with the awards held by Theravance Biopharma employees granted prior to the Spin-Off is recognized by Theravance Biopharma. (2) Includes 4.4 million options, 0.5 million restricted stock units, and 1.2 million unvested RSAs retained by former employees who were transferred to Theravance Biopharma in connection with the Spin-Off during the six months ended June 30, 2015. Subsequent to the Spin-Off, stock-based compensation expense associated with the awards held by Theravance Biopharma employees granted prior to the Spin-Off is recognized by Theravance Biopharma.

Collaborative Arrangements (Tab

Collaborative Arrangements (Tables)	6 Months Ended
	Jun. 30, 2015
Collaborative Arrangements
Schedule of net revenue recognized under GSK Agreements	Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Royalties from a related party $ $ $ $ Less: amortization of capitalized fees paid to a related party ) ) ) ) Royalty revenue ) Strategic alliance - MABA program Total net revenue from GSK $ $ $ $

Available-for-Sale Securities23

Available-for-Sale Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Available-for-Sale Securities and Fair Value Measurements
Schedule of available-for-sale securities	(In thousands) June 30, 2015 December 31, 2014 Cash and cash equivalents $ $ Short-term marketable securities Marketable securities — Total $ $
Schedule of amortized cost and estimated fair values for available-for-sale securities	June 30, 2015 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value U.S. government securities $ $ $ — $ U.S. government agencies — Corporate notes ) Commercial paper — — Money market funds — — Total $ $ $ ) $ December 31, 2014 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Other Than Temporary Impairment Loss Estimated Fair Value U.S. government securities $ $ $ — $ — $ U.S. government agencies ) — Corporate notes ) — Commercial paper — — — Ordinary shares of Theravance Biopharma — — ) Money market funds — — — Total $ $ $ ) $ ) $
Schedule of estimated fair values	Estimated Fair Value Measurements at Reporting Date Using: Types of Instruments Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets at June 30, 2015 U.S. government securities $ $ — $ — $ U.S. government agencies — — Corporate notes — — Commercial paper — — Money market funds — — Total assets measured at estimated fair value $ $ $ — $ Liabilities at June 30, 2015 Convertible subordinated notes due 2023 $ — $ $ — $ Non-recourse notes due 2029 — — Total fair value of liabilities $ — $ $ — $ Estimated Fair Value Measurements at Reporting Date Using: Types of Instruments Quoted Price in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets at December 31, 2014 U.S. government securities $ $ — $ — $ U.S. government agencies — — Corporate notes — — Commercial paper — — Ordinary shares of Theravance Biopharma — — Money market funds — — Total assets measured at estimated fair value $ $ $ — $ Liabilities at December 31, 2014 Convertible subordinated notes due 2023 $ — $ $ — $ Non-recourse notes due 2029 — — Total fair value of liabilities $ — $ $ — $

Capitalized Fees paid to a Re24

Capitalized Fees paid to a Related Party (Tables)	6 Months Ended
	Jun. 30, 2015
Capitalized Fees paid to a Related Party
Schedule of capitalized fees paid to a related party	June 30, 2015 December 31, 2014 Weighted Average Remaining Amortization Gross Net Gross Net Period Carrying Accumulated Carrying Carrying Accumulated Carrying (In thousands) (Years) Value Amortization Value Value Amortization Value Approval and launch related milestone payments under the LABA Collaboration $ $ ) $ $ $ ) $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2015
Stock-Based Compensation
Schedule of allocation of stock-based compensation expense included in the condensed consolidated statements of operations	Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Research and development $ $ $ $ General and administrative Stock-based compensation from continuing operations Stock-based compensation from discontinued operations — — Total stock-based compensation expense $ $ $ $
Schedule of assumptions used to estimate the fair value of employee stock options granted	Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Risk-free interest rate 1.6%-2.1% 1.6%-2.1% Expected term (in years) 5-6 5-6 Volatility 52%-60% 52%-60% Dividend yield 0%-0.4% 0%-0.4% Weighted-average estimated fair value of stock options granted $ $

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-Term Debt.
Schedule of long-term debt	(In thousands) June 30, 2015 December 31, 2014 Convertible Subordinated Notes due 2023 $ $ Non-Recourse Notes Payable due 2029 Total Long-Term Debt $ $

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2015
Discontinued Operations.
Schedule of discontinued operations presented on the condensed consolidated statements of operations	Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2015 2014 2015 2014 Net revenues (1) $ — $ $ — $ Loss from discontinued operations (2) — ) — ) (1) Net revenues primarily consist of revenue from collaborative arrangements and product sales. Revenue from collaborative arrangements was recognized from our agreement with R-Pharm CJSC, which was transferred to Theravance Biopharma as a part of the Spin-Off. Product sales were generated from sales of VIBATIV ® in the U.S. through a limited number of distributors, and title and risk of loss transfer upon receipt by these distributors. VIBATIV® was transferred to Theravance Biopharma as part of the Spin-Off. Healthcare providers ordered VIBATIV ® through these distributors. Commencing in the first quarter of 2014, revenue on the sale of VIBATIV ® was recorded on a sell-through basis, once the distributors sold the product to healthcare providers. Product sales were recorded net of estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions. (2) Included in the loss from discontinued operations for the three and six months ended June 30, 2014 are reimbursements of research and development costs from our former collaborative arrangements, excluding GSK, which we accounted for as reductions to research and development expense. Reimbursement of research and development costs from discontinued operations from our collaborative arrangements was $22,000 and $0.1 million for the three and six months ended June 30, 2014. In addition, the loss from discontinued operations includes the additional stock-based compensation and cash bonus expense recognized due to the achievement of performance conditions under a special long-term retention and incentive equity and cash bonus awarded to certain employees in 2011. Refer to Note 6 “Stock-Based Compensation” and Note 9 “Commitment and Contingencies” for further information.

Description of Operations and28

Description of Operations and Summary of Significant Accounting Policies (Details) $ in Millions	Jun. 02, 2014	Jun. 01, 2014USD ($)	Jun. 30, 2015
Business Separation
Cash, cash equivalents and marketable securities contributed to Theravance Biopharma		$ 393
Number of ordinary shares of Theravance Biopharma issued for every share of Theravance	0.286
GSK | LABA collaboration and Strategic Alliance agreements
Description of Operations and Summary of Significant Accounting Policies
Percentage of economic interest in any future payments made under the agreements			15.00%

Net Loss per Share (Details)

Net Loss per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Anti-dilutive securities
Anti-dilutive securities (in shares)	19,856	21,661	20,194	21,578
Stock options
Anti-dilutive securities
Anti-dilutive securities (in shares)	4,200		4,400
RSUs
Anti-dilutive securities
Anti-dilutive securities (in shares)	400		500
Unvested RSAs
Anti-dilutive securities
Anti-dilutive securities (in shares)	1,100		1,200
Outstanding options and awards granted under equity incentive plan and ESPP
Anti-dilutive securities
Anti-dilutive securities (in shares)	5,440	6,136	5,653	5,942
Unvested RSAs
Anti-dilutive securities
Anti-dilutive securities (in shares)	1,738	2,039	1,863	2,150
Shares issuable upon conversion of convertible subordinated notes
Anti-dilutive securities
Anti-dilutive securities (in shares)	12,678	13,486	12,678	13,486

Collaborative Arrangements (Det

Collaborative Arrangements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Information related to collaborative arrangements
Less: amortization of capitalized fees paid to a related party	$ (3,456)	$ (2,598)	$ (6,912)	$ (4,378)
Royalty revenue	10,434	663	17,108	(387)
Revenue from Collaborative Arrangements	221	271	443	541
Total revenue	10,655	934	$ 17,551	154
Theravance Biopharma | Common Stock
Information related to collaborative arrangements
Number of ordinary shares sold			436,802
GSK
Information related to collaborative arrangements
Royalties from a related party	13,890	3,261	$ 24,020	3,991
Less: amortization of capitalized fees paid to a related party	(3,456)	(2,598)	(6,912)	(4,378)
Royalty revenue	10,434	663	17,108	(387)
Total revenue	10,655	934	17,551	154
GSK | MABA
Information related to collaborative arrangements
Potential future contingent payments receivable	363,000		363,000
Long-acting beta agonist (LABA) collaboration | GSK
Information related to collaborative arrangements
Less: amortization of capitalized fees paid to a related party	(3,500)	(2,600)	$ (6,900)	(4,400)
Obligation for milestone payments					$ 220,000
Royalty rate for first level of annual global net sales (as a percent)			15.00%
Annual global sales level used to determine royalty rate			$ 3,000,000
Royalty rate for sales above first level of annual global net sales (as a percent)			5.00%
Long-acting beta agonist (LABA) collaboration | GSK | Minimum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)			6.50%
Long-acting beta agonist (LABA) collaboration | GSK | Maximum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)			10.00%
2004 Strategic alliance | GSK | MABA
Information related to collaborative arrangements
Revenue from Collaborative Arrangements	$ 221	$ 271	$ 443	$ 541

Available-for-Sale Securities31

Available-for-Sale Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Available-for-sale securities
Amortized Cost	$ 219,840		$ 285,483
Gross Unrealized Gains	10		35
Gross Unrealized Losses	(20)		(122)
Other Than Temporary Impairment Loss			(3,752)
Estimated Fair Value	$ 219,830		281,644
Maturity period for marketable securities
Maximum contractual maturity period	1 year
Average contractual maturity period	4 months
Proceeds from sale of available-for-sale securities	$ 57,098	$ 5,000
Cash and cash equivalents
Available-for-sale securities
Estimated Fair Value	140,146		95,090
Short-term marketable securities
Available-for-sale securities
Estimated Fair Value	79,684		143,698
Marketable securities
Available-for-sale securities
Estimated Fair Value	0		42,856
Theravance Biopharma
Maturity period for marketable securities
Gain on sale	1,200
Proceeds from sale of available-for-sale securities	49,400
U.S. government securities
Available-for-sale securities
Amortized Cost	7,499		30,019
Gross Unrealized Gains	4		24
Gross Unrealized Losses	0		0
Other Than Temporary Impairment Loss			0
Estimated Fair Value	7,503		30,043
U.S. government agencies
Available-for-sale securities
Amortized Cost	15,965		34,756
Gross Unrealized Gains	2		6
Gross Unrealized Losses	0		(12)
Other Than Temporary Impairment Loss			0
Estimated Fair Value	15,967		34,750
Corporate notes
Available-for-sale securities
Amortized Cost	46,241		80,880
Gross Unrealized Gains	4		5
Gross Unrealized Losses	(20)		(110)
Other Than Temporary Impairment Loss			0
Estimated Fair Value	46,225		80,775
Commercial paper
Available-for-sale securities
Amortized Cost	9,989		34,469
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Other Than Temporary Impairment Loss			0
Estimated Fair Value	9,989		34,469
Ordinary shares of Theravance Biopharma
Available-for-sale securities
Amortized Cost			10,269
Gross Unrealized Gains			0
Gross Unrealized Losses			0
Other Than Temporary Impairment Loss			(3,752)
Estimated Fair Value			6,517
Money market funds
Available-for-sale securities
Amortized Cost	140,146		95,090
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Other Than Temporary Impairment Loss			0
Estimated Fair Value	$ 140,146		$ 95,090

Available-for-Sale Securities32

Available-for-Sale Securities and Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	$ 219,830	$ 281,644
U.S. government securities
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	7,503	30,043
U.S. government agencies
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	15,967	34,750
Corporate notes
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	46,225	80,775
Commercial paper
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	9,989	34,469
Ordinary shares of Theravance Biopharma
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value		6,517
Money market funds
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	140,146	95,090
Recurring basis | Total
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	219,830	281,644
Recurring basis | Total | U.S. government securities
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	7,503	30,043
Recurring basis | Total | U.S. government agencies
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	15,967	34,750
Recurring basis | Total | Corporate notes
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	46,225	80,775
Recurring basis | Total | Commercial paper
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	9,989	34,469
Recurring basis | Total | Ordinary shares of Theravance Biopharma
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value		6,517
Recurring basis | Total | Money market funds
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	140,146	95,090
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	147,649	131,650
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | U.S. government securities
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	7,503	30,043
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | U.S. government agencies
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Corporate notes
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Commercial paper
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Ordinary shares of Theravance Biopharma
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value		6,517
Recurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Money market funds
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	140,146	95,090
Recurring basis | Significant Other Observable Inputs, Level 2
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	72,181	149,994
Recurring basis | Significant Other Observable Inputs, Level 2 | U.S. government securities
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Other Observable Inputs, Level 2 | U.S. government agencies
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	15,967	34,750
Recurring basis | Significant Other Observable Inputs, Level 2 | Corporate notes
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	46,225	80,775
Recurring basis | Significant Other Observable Inputs, Level 2 | Commercial paper
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	9,989	34,469
Recurring basis | Significant Other Observable Inputs, Level 2 | Ordinary shares of Theravance Biopharma
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value		0
Recurring basis | Significant Other Observable Inputs, Level 2 | Money market funds
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3 | U.S. government securities
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3 | U.S. government agencies
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3 | Corporate notes
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3 | Commercial paper
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Recurring basis | Significant Unobservable Inputs, Level 3 | Ordinary shares of Theravance Biopharma
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value		0
Recurring basis | Significant Unobservable Inputs, Level 3 | Money market funds
Estimated fair values of entity's financial assets and liabilities
Total assets measured at fair value	0	0
Nonrecurring basis | Total
Estimated fair values of entity's financial assets and liabilities
Total fair value of liabilities	715,915	653,506
Nonrecurring basis | Total | Convertible subordinated notes due 2023
Estimated fair values of entity's financial assets and liabilities
Convertible subordinated notes due 2023	239,802	197,095
Nonrecurring basis | Total | Non-recourse notes payable due 2029
Estimated fair values of entity's financial assets and liabilities
Non-recourse notes due 2029	476,113	456,411
Nonrecurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1
Estimated fair values of entity's financial assets and liabilities
Total fair value of liabilities	0	0
Nonrecurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Convertible subordinated notes due 2023
Estimated fair values of entity's financial assets and liabilities
Convertible subordinated notes due 2023	0	0
Nonrecurring basis | Quoted Prices in Active Markets for Identical Assets, Level 1 | Non-recourse notes payable due 2029
Estimated fair values of entity's financial assets and liabilities
Non-recourse notes due 2029	0	0
Nonrecurring basis | Significant Other Observable Inputs, Level 2
Estimated fair values of entity's financial assets and liabilities
Total fair value of liabilities	715,915	653,506
Nonrecurring basis | Significant Other Observable Inputs, Level 2 | Convertible subordinated notes due 2023
Estimated fair values of entity's financial assets and liabilities
Convertible subordinated notes due 2023	239,802	197,095
Nonrecurring basis | Significant Other Observable Inputs, Level 2 | Non-recourse notes payable due 2029
Estimated fair values of entity's financial assets and liabilities
Non-recourse notes due 2029	476,113	456,411
Nonrecurring basis | Significant Unobservable Inputs, Level 3
Estimated fair values of entity's financial assets and liabilities
Total fair value of liabilities	0	0
Nonrecurring basis | Significant Unobservable Inputs, Level 3 | Convertible subordinated notes due 2023
Estimated fair values of entity's financial assets and liabilities
Convertible subordinated notes due 2023	0	0
Nonrecurring basis | Significant Unobservable Inputs, Level 3 | Non-recourse notes payable due 2029
Estimated fair values of entity's financial assets and liabilities
Non-recourse notes due 2029	$ 0	$ 0

Capitalized Fees paid to a Re33

Capitalized Fees paid to a Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Capitalized Fees paid to a Related Party
Net Carrying Value	$ 201,279		$ 201,279		$ 208,191	[1]
Amortization of capitalized fees paid to a related party	3,456	$ 2,598	6,912	$ 4,378
Estimated amortization expense for the remainder of 2015	6,900		6,900
Estimated amortization expense for the year 2016	13,800		13,800
Estimated amortization expense for the year 2017	13,800		13,800
Estimated amortization expense for the year 2018	13,800		13,800
Estimated amortization expense for the year 2019	13,800		13,800
Estimated amortization expense thereafter	139,200		139,200
GSK
Capitalized Fees paid to a Related Party
Amortization of capitalized fees paid to a related party	3,456	2,598	$ 6,912	4,378
GSK | Long-acting beta agonist (LABA) collaboration
Capitalized Fees paid to a Related Party
Weighted Average Remaining Amortization Period			14 years 7 months 6 days
Gross Carrying Value	220,000		$ 220,000		220,000
Accumulated Amortization	(18,721)		(18,721)		(11,809)
Net Carrying Value	201,279		201,279		$ 208,191
Amortization of capitalized fees paid to a related party	$ 3,500	$ 2,600	$ 6,900	$ 4,400
[1]	Condensed consolidated balance sheet at December 31, 2014 has been derived from audited consolidated financial statements.

Stock-Based Compensation (Detai

Stock-Based Compensation (Details)	Jun. 02, 2014	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)shares	Jun. 30, 2014USD ($)	May. 31, 2014USD ($)	Jun. 30, 2015USD ($)itemshares	Jun. 30, 2014USD ($)	Dec. 31, 2011shares
Stock-based compensation
Stock-based compensation expense | $			$ 1,822,000	$ 7,747,000		$ 3,755,000	$ 21,281,000
Number of shares of Theravance Biopharma issued for every share of Theravance	0.286
Employee Stock Purchase Plan
Stock-based compensation
Shares remaining available for issuance			278,971			278,971
Purchase price as a percentage of fair market value of stock						85.00%
Consecutive and overlapping offering periods						24 months
Number of offering periods | item						4
Duration of purchase period						6 months
Maximum contributions as a percentage of employee's eligible compensation						15.00%
Maximum number of shares an employee may purchase during any purchase period						2,500
Maximum value of shares an employee may purchase | $						$ 25,000
2012 Equity Incentive Plan
Stock-based compensation
Shares remaining available for issuance			3,140,356			3,140,356
Special Long-Term Retention and Incentive Awards Program | Unvested RSAs | Performance-contingent
Stock-based compensation
Shares of common stock approved and authorized for issuance								1,290,000
Timeframe for achievement of performance conditions								6 years
Total stock-based compensation that will be recognized in the year | $					$ 7,000,000
Stock-based compensation expenses expected to be recognized | $		$ 3,800,000
RSAs outstanding (in shares)			63,000			63,000

Stock-Based Compensation (Det35

Stock-Based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-based compensation
Stock-based compensation expense	$ 1,822	$ 7,747	$ 3,755	$ 21,281
Stock options
Stock-based compensation
Total unrecognized compensation cost related to unvested stock-based compensation	1,900		1,900
RSUs
Stock-based compensation
Total unrecognized compensation cost related to unvested stock-based compensation	2,600		2,600
Unvested RSAs
Stock-based compensation
Total unrecognized compensation cost related to unvested stock-based compensation	8,200		8,200
Continuing operations
Stock-based compensation
Stock-based compensation expense	1,822	3,595	3,755	9,652
Discontinued Operations
Stock-based compensation
Stock-based compensation expense	0	4,152	0	11,629
Research and development | Continuing operations
Stock-based compensation
Stock-based compensation expense	232	514	467	1,232
General and administrative | Continuing operations
Stock-based compensation
Stock-based compensation expense	$ 1,590	$ 3,081	$ 3,288	$ 8,420

Stock-Based Compensation (Det36

Stock-Based Compensation (Details 3) - Stock options - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Compensation Awards
Options granted (in shares)	0		0
Weighted-average assumptions
Risk-free interest rate, minimum (as a percent)		1.60%		1.60%
Risk-free interest rate, maximum (as a percent)		2.10%		2.10%
Volatility, minimum (as a percent)		52.00%		52.00%
Volatility, maximum (as a percent)		60.00%		60.00%
Weighted-average estimated fair value of stock options granted		$ 15.72		$ 17.43
Minimum
Weighted-average assumptions
Expected term (in years)		5 years		5 years
Dividend yield (as a percent)		0.00%		0.00%
Maximum
Weighted-average assumptions
Expected term (in years)		6 years		6 years
Dividend yield (as a percent)		0.40%		0.40%

Long-Term Debt (Details)

Long-Term Debt (Details) $ / shares in Units, $ in Thousands	Jul. 15, 2014$ / sharesshares	Jun. 30, 2014$ / shares$ / item	Jan. 31, 2013USD ($)item$ / shares$ / itemshares	Jan. 31, 2013USD ($)item$ / shares$ / item	Jun. 30, 2015USD ($)$ / shares$ / item	Jun. 30, 2014USD ($)$ / shares$ / item	Jun. 30, 2015USD ($)$ / shares$ / item	Jun. 30, 2014USD ($)$ / shares$ / item	Jun. 30, 2015USD ($)$ / shares$ / item	Dec. 31, 2014USD ($)		Apr. 30, 2014USD ($)
Debt disclosures
Convertible Subordinated Debt, Noncurrent					$ 255,109		$ 255,109		$ 255,109	$ 255,109	[1]
Non-recourse notes, due 2029					483,363		483,363		483,363	470,527	[1]
Long-term Debt, Excluding Current Maturities					738,472		738,472		738,472	725,636
Proceeds from issuances of note payable, net of debt issuance costs							0	$ 434,677
Interest amount added to principal balance							12,836	$ 0
Convertible subordinated notes due 2023
Debt disclosures
Convertible Subordinated Debt, Noncurrent					$ 255,109		$ 255,109		$ 255,109	255,109
Loan amount			$ 287,500	$ 287,500
Proceeds from issuances of note payable, net of debt issuance costs			$ 281,200
Interest rate (as a percent)			2.125%	2.125%
Conversion rate of shares		46.9087		35.9903			49.6963
Conversion price of convertible notes into common stock (in dollars per share) | $ / shares		$ 21.32	$ 27.79	$ 27.79	$ 20.12	$ 21.32	$ 20.12	$ 21.32	$ 20.12
Percentage of principal amount at which the entity may be forced to redeem some or all notes as a result of a fundamental change (as defined)			100.00%
Convertible subordinated notes due 2023 | Common Stock
Debt disclosures
Conversion price of convertible notes into common stock (in dollars per share) | $ / shares	$ 21.32
Number of common shares issued upon debt conversion | shares	1,519,402
Number of common stares received | shares	149,645
Convertible subordinated notes due 2023 | Privately-negotiated capped call option
Debt disclosures
Payments for capped call options			$ 36,800
Number of derivative instruments purchased | item			2	2
Strike price for the underlying number of shares (in dollars per share) | $ / shares		$ 21.32	$ 27.79				$ 20.12
Cap price for the underlying number of shares (in dollars per share) | $ / item		29.16	38	38	27.52	29.16	27.52	29.16	27.52
Convertible subordinated notes due 2023 | Stock prices below $27.79 per share | Maximum
Debt disclosures
Net shares settlement payable to the entity | shares			2,779,659
Convertible subordinated notes due 2023 | Stock prices below $27.79 per share | Minimum
Debt disclosures
Net shares settlement payable to the entity | shares			0
Convertible subordinated notes due 2023 | Stock prices above $38.00 per share
Debt disclosures
Incremental Common Shares Attributable to Capped Call Options | shares			0
Non-recourse notes payable due 2029
Debt disclosures
Non-recourse notes, due 2029					$ 483,363		$ 483,363		$ 483,363	$ 470,527
Non-recourse notes payable due 2029 | GSK
Debt disclosures
Loan amount												$ 450,000
Interest rate (as a percent)												9.00%
Percentage of royalties from global net sales												40.00%
Interest amount added to principal balance					$ 6,400	$ 0	$ 12,800	$ 0	$ 33,400
Debt issuance costs												$ 15,300
[1]	Condensed consolidated balance sheet at December 31, 2014 has been derived from audited consolidated financial statements.

Shareholders' Deficit (Details)

Shareholders' Deficit (Details) - USD ($) $ / shares in Units, $ in Millions	Apr. 24, 2015	Feb. 20, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Dividends
Cash dividends declared per common share (in dollars per share)	$ 0.25	$ 0.25	$ 0.25	$ 0	$ 0.50	$ 0
Dividends paid			$ 29.2		$ 58
Common Stock
Shareholders' Deficit
Awards exercised (in shares)					111,156	79,000
Weighted-average exercise price of awards exercised (in dollars per share)					$ 13.75	$ 12.89
Total cash proceeds					$ 1.5	$ 1
Governance agreement | GSK | Common Stock
Shareholders' Deficit
Common stock purchased (in shares)					178,253
Aggregate purchase price of common stock					$ 3

Commitments and Contingencies (

Commitments and Contingencies (Details) - Theravance Biopharma - Lease payments guarantee $ in Millions	Jun. 30, 2015USD ($)
Operating Leases
Total lease payments	$ 30.5
Estimated fair value of the guarantee	$ 1.3

Commitments and Contingencies40

Commitments and Contingencies (Details 2) - Special Long-Term Retention and Incentive Cash Awards Program - USD ($) $ in Millions	1 Months Ended	3 Months Ended	12 Months Ended
	May. 31, 2014	Mar. 31, 2014	Dec. 31, 2011
Special Long-Term Retention and Incentive Cash Awards Program
Timeframe for achievement of performance conditions			6 years
Cash bonus expense recognized		$ 9.1
Total cash bonus paid	$ 9.5
Remaining potential cash bonus expense associated with these cash bonus awards after the modification	$ 0.5

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	Jun. 01, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Taxes
U.S. federal income tax gain on distribution of the assets	$ 400,000
Provision for income taxes		$ 0	$ 278	$ 0	$ 278

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Components of research and drug development operations presented on the condensed consolidated statements of operations
Net revenues	$ 0	$ 2,184,000	$ 0	$ 3,129,000
Loss from discontinued operations	$ 0	(43,413,000)	$ 0	(94,934,000)
Discontinued Operations
Components of research and drug development operations presented on the condensed consolidated statements of operations
Reimbursement of certain research and development costs to the entity		$ 22,000		$ 100,000

Subsequent Event (Details)

Subsequent Event (Details) - $ / shares	Jul. 24, 2015	Apr. 24, 2015	Feb. 20, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Subsequent Event
Cash dividends declared per common share (in dollars per share)		$ 0.25	$ 0.25	$ 0.25	$ 0	$ 0.50	$ 0
Subsequent Event
Subsequent Event
Cash dividends declared per common share (in dollars per share)	$ 0.25