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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

Accumulated

Carrying

(In thousands)

(Years)

Value

Amortization

Value

Amortization

Value

Approval and launch related milestone payments under the LABA Collaboration

14.6

220,000

(18,721

)

201,279

220,000

(11,809

)

208,191

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

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	$	232	$	514	$	467	$	1,232
General and administrative	1,590		3,081		3,288		8,420

Stock-based compensation from continuing operations	1,822		3,595		3,755		9,652
Stock-based compensation from discontinued operations	—		4,152		—		11,629

Total stock-based compensation expense	$	1,822	$	7,747	$	3,755	$	21,281

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	$	15.72	$	17.43

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	$	255,109	$	255,109
Non-Recourse Notes Payable due 2029	483,363		470,527

Total Long-Term Debt	$	738,472	$	725,636

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	6 Months Ended
Shareholders' Deficit	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”.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	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	6 Months Ended
Income Taxes	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. The 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

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)	$	—	$	2,184		$	—	$	3,129
Loss from discontinued operations (2)	—		(43,413		)	—		(94,934		)

(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.

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

Subsequent Event	6 Months Ended
Subsequent Event	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 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.

Schedule of anti-dilutive securities

Disclosure of accounting policy for consolidation to describe the significant judgments and assumptions made in determining whether a variable interest held by the entity requires the variable interest entity to be consolidated and (or) disclose information about its involvement with the variable interest entity; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; and the significant factors considered and judgments made in determining that the power to direct the activities that significantly impact the economic performance of the variable interest entity are shared (as defined).

+ References + Details

Net Loss per Share (Tables)

6 Months Ended

Jun. 30, 2015

Net Loss per Share

	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	5,440	6,136	5,653	5,942
Unvested RSAs	1,738	2,039	1,863	2,150
Shares issuable upon conversion of convertible subordinated notes	12,678	13,486	12,678	13,486

	19,856	21,661	20,194	21,578

(1)

(2)

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	$	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		)
Strategic alliance - MABA program	221			271			443			541

Total net revenue from GSK	$	10,655		$	934		$	17,551		$	154

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	$	140,146	$	95,090
Short-term marketable securities	79,684		143,698
Marketable securities	—		42,856

Total	$	219,830	$	281,644

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	$	7,499	$	4	$	—		$	7,503
U.S. government agencies	15,965		2		—			15,967
Corporate notes	46,241		4		(20		)	46,225
Commercial paper	9,989		—		—			9,989
Money market funds	140,146		—		—			140,146

Total	$	219,840	$	10	$	(20	)	$	219,830

	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	$	30,019	$	24	$	—		$	—		$	30,043
U.S. government agencies	34,756		6		(12		)	—			34,750
Corporate notes	80,880		5		(110		)	—			80,775
Commercial paper	34,469		—		—			—			34,469
Ordinary shares of Theravance Biopharma	10,269		—		—			(3,752		)	6,517
Money market funds	95,090		—		—			—			95,090

Total	$	285,483	$	35	$	(122	)	$	(3,752	)	$	281,644

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	$	7,503	$	—	$	—	$	7,503
U.S. government agencies	—		15,967		—		15,967
Corporate notes	—		46,225		—		46,225
Commercial paper	—		9,989		—		9,989
Money market funds	140,146		—		—		140,146

Total assets measured at estimated fair value	$	147,649	$	72,181	$	—	$	219,830

Liabilities at June 30, 2015
Convertible subordinated notes due 2023	$	—	$	239,802	$	—	$	239,802
Non-recourse notes due 2029	—		476,113		—		476,113

Total fair value of liabilities	$	—	$	715,915	$	—	$	715,915

	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	$	30,043	$	—	$	—	$	30,043
U.S. government agencies	—		34,750		—		34,750
Corporate notes	—		80,775		—		80,775
Commercial paper	—		34,469		—		34,469
Ordinary shares of Theravance Biopharma	6,517		—		—		6,517
Money market funds	95,090		—		—		95,090

Total assets measured at estimated fair value	$	131,650	$	149,994	$	—	$	281,644

Liabilities at December 31, 2014
Convertible subordinated notes due 2023	$	—	$	197,095	$	—	$	197,095
Non-recourse notes due 2029	—		456,411		—		456,411

Total fair value of liabilities	$	—	$	653,506	$	—	$	653,506

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Capitalized Fees paid to a Related Party (Tables)

6 Months Ended

Jun. 30, 2015

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

Accumulated

Carrying

(In thousands)

(Years)

Value

Amortization

Value

Amortization

Value

Approval and launch related milestone payments under the LABA Collaboration

14.6

220,000

(18,721

)

201,279

220,000

(11,809

)

208,191

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	$	232	$	514	$	467	$	1,232
General and administrative	1,590		3,081		3,288		8,420

Stock-based compensation from continuing operations	1,822		3,595		3,755		9,652
Stock-based compensation from discontinued operations	—		4,152		—		11,629

Total stock-based compensation expense	$	1,822	$	7,747	$	3,755	$	21,281

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	$	15.72	$	17.43

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	$	255,109	$	255,109
Non-Recourse Notes Payable due 2029	483,363		470,527

Total Long-Term Debt	$	738,472	$	725,636

Schedule of discontinued operations presented on the condensed consolidated statements of operations

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2015

Discontinued Operations.

	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2015		2014			2015		2014
Net revenues (1)	$	—	$	2,184		$	—	$	3,129
Loss from discontinued operations (2)	—		(43,413		)	—		(94,934		)

(1)

(2)

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Description of Operations and Summary of Significant Accounting Policies (Details) $ in Millions			6 Months Ended
	Jun. 02, 2014	Jun. 01, 2014 USD ($)	Jun. 30, 2015
Business Separation
Cash, cash equivalents and marketable securities contributed to Theravance Biopharma		$ 393.0
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) - shares shares in Thousands	3 Months Ended		6 Months Ended
Net Loss per Share (Details) - shares shares in Thousands	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 (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 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 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 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

Amortization of capitalized fees paid to a related party

Net Carrying Value

$ 201,279

$ 208,191

^[1]

3,456

$ 2,598

6,912

$ 4,378

Estimated amortization expense for the remainder of 2015

6,900

Estimated amortization expense for the year 2016

13,800

Estimated amortization expense for the year 2017

13,800

Estimated amortization expense for the year 2018

13,800

Estimated amortization expense for the year 2019

13,800

Estimated amortization expense thereafter

139,200

GSK

Amortization of capitalized fees paid to a related party

3,456

2,598

$ 6,912

4,378

GSK | Long-acting beta agonist (LABA) collaboration

Weighted Average Remaining Amortization Period

14 years 7 months 6 days

Gross Carrying Value

220,000

$ 220,000

220,000

Accumulated Amortization

(18,721)

(11,809)

Net Carrying Value

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 (Details)		1 Months Ended	3 Months Ended		5 Months Ended	6 Months Ended		12 Months Ended
Stock-Based Compensation (Details)	Jun. 02, 2014	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($)	May 31, 2014 USD ($)	Jun. 30, 2015 USD ($) item shares	Jun. 30, 2014 USD ($)	Dec. 31, 2011 shares
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 (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 (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)
$ / shares in Units, $ in Thousands

1 Months Ended

3 Months Ended

6 Months Ended

15 Months Ended

Jul. 15, 2014

$ / shares

Jun. 30, 2014

$ / shares

$ / item

Jan. 31, 2013

USD ($)

item

$ / shares

$ / item

Jan. 31, 2013

USD ($)

item

$ / shares

$ / item

Jun. 30, 2015

USD ($)

$ / shares

$ / item

Jun. 30, 2014

USD ($)

$ / shares

$ / item

Jun. 30, 2015

USD ($)

$ / shares

$ / item

Jun. 30, 2014

USD ($)

$ / shares

$ / item

Jun. 30, 2015

USD ($)

$ / shares

$ / item

Dec. 31, 2014

USD ($)

Apr. 30, 2014

USD ($)

Convertible Subordinated Debt, Noncurrent

$ 255,109

^[1]

Non-recourse notes, due 2029

483,363

470,527

^[1]

Long-term Debt, Excluding Current Maturities

738,472

725,636

Proceeds from issuances of note payable, net of debt issuance costs

$ 434,677

Interest amount added to principal balance

12,836

$ 0

Convertible subordinated notes due 2023

Convertible Subordinated Debt, Noncurrent

$ 255,109

255,109

Loan amount

$ 287,500

Proceeds from issuances of note payable, net of debt issuance costs

$ 281,200

Interest rate (as a percent)

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

$ 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

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

Payments for capped call options

$ 36,800

Number of derivative instruments purchased | item

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

38.00

27.52

29.16

27.52

29.16

27.52

Convertible subordinated notes due 2023 | Stock prices below $27.79 per share | Maximum

Net shares settlement payable to the entity | shares

2,779,659

Convertible subordinated notes due 2023 | Stock prices below $27.79 per share | Minimum

Net shares settlement payable to the entity | shares

Convertible subordinated notes due 2023 | Stock prices above $38.00 per share

Incremental Common Shares Attributable to Capped Call Options | shares

Non-recourse notes payable due 2029

Non-recourse notes, due 2029

$ 483,363

$ 470,527

Non-recourse notes payable due 2029 | GSK