HispanicBusiness

(THRX-F)

                              THERAVANCE, INC.              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                   (In thousands, except per share data)                              Three Months Ended      Twelve Months Ended                                 December 31,             December 31,                            ----------------------  -----------------------                               2012        2011         2012        2011                            ----------  ----------  -----------  ----------                                  (unaudited)       (unaudited)      (2)                            ----------------------  -----------  ----------Revenue                     $    5,799  $    5,361  $   135,758  $   24,512Operating expenses:  Research and development   (1)                          28,120      32,468      117,898     103,568  General and   administrative (1)            7,658       8,469       30,859      30,681                            ----------  ----------  -----------  ----------Total operating expenses        35,778      40,937      148,757     134,249                            ----------  ----------  -----------  ----------Loss from operations           (29,979)    (35,576)     (12,999)   (109,737)Interest and other income          156          71          460         415Interest expense                (1,500)     (1,502)      (6,003)     (6,022)                            ----------  ----------  -----------  ----------Net loss                    $  (31,323) $  (37,007) $   (18,542) $ (115,344)                            ==========  ==========  ===========  ==========Net loss per share:Basic and Diluted           $    (0.33) $    (0.45) $     (0.20) $    (1.41)                            ==========  ==========  ===========  ==========Weighted average shares:Basic and Diluted               95,787      82,862       90,909      82,051                            ==========  ==========  ===========  ==========(1) Amounts include stock-based compensation expense for the three months    and twelve months ended December 31 as follows (in thousands):                               Three Months Ended      Twelve Months Ended                                  December 31,            December 31,                            ----------------------- ------------------------                                2012        2011        2012         2011                            ----------- ----------- ------------ -----------                                  (unaudited)              (unaudited)Research and development    $     3,338 $     3,401 $     13,667 $    13,422General and administrative        2,401       2,809       10,116      11,494                            ----------- ----------- ------------ -----------Total stock-based compensation expense       $     5,739 $     6,210 $     23,783 $    24,916                            =========== =========== ============ ===========(2) The condensed consolidated statement of operations amounts for the year    ended December 31, 2011 are derived from audited financial statements.                              THERAVANCE, INC.                   CONDENSED CONSOLIDATED BALANCE SHEETS                               (In thousands)                                                  December 30, December 31,                                                      2012         2011                                                 ------------- ------------                                                  (unaudited)       (1)                                                 ------------- ------------Assets  Cash, cash equivalents and marketable   securities                                    $     343,683 $    240,915  Other current assets                                   5,130        3,848  Inventory                                              7,514           --  Property and equipment, net                            9,154       10,372  Other assets                                           3,101        3,647                                                 ------------- ------------  Total assets                                   $     368,582 $    258,782                                                 ============= ============Liabilities and stockholders' equity (net capital deficiency)  Current liabilities (2)                        $      29,966 $     45,496  Deferred revenue, non-current                          6,014      122,017  Convertible subordinated notes                       172,500      172,500  Other long-term liabilities                            5,074        5,821  Stockholders' equity (net capital deficiency)        155,028      (87,052)                                                 ------------- ------------  Total liabilities and stockholders' equity (net capital deficiency)                        $     368,582 $    258,782                                                 ============= ============(1) The condensed consolidated balance sheet amounts at December 31, 2011    are derived from audited financial statements.(2) Amounts include current portion of deferred revenue of $4.6 million and    $18.7 million as of December 31, 2012 and December 31, 2011,    respectively.