Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-Based Compensation

Schedule of share-based compensation expense included in the consolidated statements of operations

	Year Ended December 31,
(In thousands)	2020		2019		2018
Research and development	$	31,294	$	28,953	$	25,563
Selling, general and administrative		31,682		31,497		25,750
Total share-based compensation expense	$	62,976	$	60,450	$	51,313

Schedule of share-based compensation expense by award type included in the consolidated statements of operations

	Year Ended December 31,
(In thousands)	2020		2019		2018
Innoviva equity:
Options	$	—	$	—	$	280
RSUs		—		—		—
RSAs		—		64		457
Performance RSAs		—		—		—
Theravance Biopharma equity:
Options		6,536		6,381		8,441
RSUs		49,803		39,520		34,077
Performance RSAs and RSUs		3,943		12,717		4,707
ESPP		2,694		1,768		3,351
Total share-based compensation expense	$	62,976	$	60,450	$	51,313

Schedule of unrecognized compensation cost, net of expected forfeitures, and the estimated weighted-average amortization period, using the straight-line attribution method

	Unrecognized		Weighted‑Average
	Compensation		Amortization Period
(In thousands, except amortization period)	Cost		(Years)
Theravance Biopharma equity:
Options	$	11,513	2.62
RSUs		101,588	2.53
Performance RSAs and RSUs (1)		502	0.21
ESPP		1,122	0.62
Total	$	114,725

(1) Represents unrecognized share-based compensation cost associated with the Company’s performance-contingent awards described above that are probable of vesting.

Summary of option activity under the 2013 EIP and 2014 NEEIP

	Number of Shares	Weighted-Average
	Subject	Exercise Price
	to Outstanding Options	of Outstanding Options
Outstanding at December 31, 2019	2,950,472	$	24.75
Granted	600,300		22.58
Exercised	(68,171)		19.96
Forfeited	(183,422)		22.49
Outstanding at December 31, 2020	3,299,179	$	24.58

Schedule of RSU and RSA activity (including performance RSUs and RSAs)

	Number of Shares	Number of Shares
	Subject to	Outstanding Subject to
	Outstanding RSUs	Performance Conditions (RSAs)
Outstanding at December 31, 2019	4,939,774	776,250
Granted	2,576,326	—
Released	(1,907,307)	(362,250)
Forfeited	(614,875)	—
Outstanding at December 31, 2020	4,993,918	414,000

Schedule of range of assumptions used to estimate the fair value of share options granted and rights granted

	Year Ended December 31,
	2020		2019		2018
Options
Risk-free interest rate		0.3% - 1.7%		1.6% - 2.5%		2.3% - 3.0%
Expected term (in years)		5.2 - 6.1		6.0		6.0
Volatility		50% - 53%		51% - 53%		53% - 54%
Dividend yield		—		—		—
Weighted-average estimated fair value	$	11.03	$	10.20	$	14.32
2013 ESPP
Risk-free interest rate		0.1% - 0.2%		1.5% - 2.4%		2.1% - 2.8%
Expected term (in years)		0.5 - 2.0		0.5 - 2.0		0.5 - 2.0
Volatility		53% - 76%		40% - 48%		42% - 53%
Dividend yield		—		—		—
Weighted-average estimated fair value	$	8.04	$	6.17	$	9.13