Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotech Theravance (NAS: THRX) have jumped today by as much as 23% on news that behemoth drugmaker GlaxoSmithKline (NYS: GSK) is boosting its stake in the company.

So what: GlaxoSmithKline is investing roughly $213 million in the smaller company in a deal that gives it 10 million new shares through a private placement at a price of $21.29 each, a 9% premium to Friday's closing price. That brings GlaxoSmithKline's stake up to 25.8 million shares, or almost 27% of Theravance.


Now what: The two companies are currently partnering to develop Relovair, an experimental drug for lung disease and asthma. The pair has been collaborating for a decade and the investment signifies further confidence in Theravance. Relovair is seen as the follow-up successor to GlaxoSmithKline's Advair asthma drug, and Relovair has already completed phase 3 development.

Interested in more info on Theravance? Add it to your watchlist by clicking here.

At the time this article was published Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of GlaxoSmithKline. The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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