Theravance Announces Closing of $172.5 Million Public Offering of Convertible Subordinated Notes

SOUTH SAN FRANCISCO, CA, Jan 23 (MARKET WIRE) --
Theravance, Inc. (NASDAQ: THRX) today announced that it closed the sale of its
previously announced underwritten public offering of $172.5 million aggregate
principal amount of unsecured 3% convertible subordinated notes due 2015, which
includes the full exercise of the underwriters' over-allotment option for
$22.5 million aggregate principal amount of notes.

The notes are convertible into shares of the Company's common stock at an
initial conversion rate of 38.6548 shares per $1,000 principal amount of the
notes, subject to adjustment in certain circumstances, which represents an
initial
conversion price of approximately $25.87 per share.

The Company received approximately $166.7 million from the sale of the notes
after deducting the underwriting discount and estimated offering expenses. The
Company intends to use the net proceeds from the offering for general corporate
purposes.

Merrill Lynch & Co. and Goldman, Sachs & Co. acted as joint book-running
managers of
the public offering. This press release shall not constitute an offer to sell
or a
solicitation of an offer to buy, nor shall there be any sales of these
securities in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities law of any such state or jurisdiction.

About Theravance

Theravance is a biopharmaceutical company with a pipeline of internally
discovered
product candidates. Theravance is focused on the discovery, development and
commercialization of small molecule medicines across a number of
therapeutic areas including respiratory disease, bacterial infections and
gastrointestinal motility dysfunction. Of the six programs in development, four
are in late stage -- its telavancin program focusing on treating serious
Gram-positive bacterial infections with Astellas Pharma Inc., the Horizon
program with GlaxoSmithKline plc, the Gastrointestinal Motility Dysfunction
program, and
TD-1792, an investigational antibiotic for the treatment of serious
Gram-positive
bacterial infections. By leveraging its proprietary insight of multivalency
toward drug discovery focused on validated targets, Theravance is pursuing a
next
generationstrategy designed to discover superior medicines in areas of
significant unmet
medical need. For more information, please visit the company's web site at
www.theravance.com.

THERAVANCE(R), the Theravance logo, and MEDICINES THAT MAKE A
DIFFERENCE(R)are registered trademarks of Theravance, Inc.

Forward-Looking Statements

This press release contains certain "forward-looking" statements as that
term
is defined in the Private Securities Litigation Reform Act of 1995 regarding,
among other things, statements relating to goals, plans, objectives and future
events. Theravance intends such forward-looking statements to be covered by the
safe
harbor provisions for forward-looking statements contained in Section 21E of the
Exchange
Act and the Private Securities Litigation Reform Act of 1995. Examples of such
statementsinclude statements regarding the enabling capabilities of Theravance's
approach to
drug discovery and its proprietary insights and statements concerning
expectations
for product candidates through development and commercialization. These
statements are based on the current estimates and assumptions of the
management of Theravance as of the date of this press release and are subject
to risks, uncertainties, changes in circumstances, assumptions and other factors
that
may cause the actual results of Theravance to be materially different from
those reflected in its forward-looking statements. Important factors that
could cause actual results to differ materially from those indicated by such
forward-lookingstatements include, among others, the potential that results of
clinical
orpreclinical studies indicate product candidates are unsafe, ineffective,
inferior or
not superior, and delays or failure to achieve regulatory approvals. These and
other
risks are described in greater detail under the heading "Risk Factors"
contained in Theravance's prospectus filed with the Securities and Exchange
Commission (SEC) pursuant to Rule 424(b)(5) of the Securities Act of 1933 on
January 17, 2008 and the risks discussed in our other periodic filings with
the SEC. Given these uncertainties, you should not place undue reliance on these
forward-looking statements. Theravance assumes no obligation to update its
forward-looking statements.

Contact Information:
Theravance, Inc.
Allison Parker
Director, Investor Relations
650-808-4100
Email Contact

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