UPDATE 1-Theravance says asthma study costs, time may go up

* Says FDA's uncertainty may raise time, cost for Relovair

* Says uncertainty may increase risk of the asthma program

* Plans to offer 7.5 million shares of common stock

March 17 (Reuters) - Theravance Inc (THRX.O: Quote, Profile, Research) said it was
uncertain of U.S. health regulators' position on its
experimental asthma treatment, which could raise the time and
the cost of the program.

On March 10 and 11, the U.S. Food and Drug Administration
held an advisory committee to evaluate serious outcomes for the
inhaled medicine, the company said.

The treatment, Relovair, is currently in its late-stage
trials, aimed at developing a next-generation combination
medicine for patients with asthma or chronic obstructive
pulmonary disorder, also known as "smoker's lung".
[ID:nLR562402]

Theravance is developing the drug with its partner
GlaxoSmithKline (GSK.L: Quote, Profile, Research) and the program was formerly referred
to as Horizon.

In a separate statement, Theravance on Wednesday said it
plans to offer 7.5 million shares of its common stock in a
public offering.

It plans to use net proceeds from the offering for general
corporate purposes, including funding its clinical and
preclinical products.

The company also intends to grant underwriters a 30-day
over-allotment option to purchase on the same terms and
conditions up to an additional 1.125 million shares of common
stock.

Morgan Stanley & Co, Credit Suisse Securities (USA) LLC and
Leerink Swann LLC have been engaged as joint book-running
managers of the offering.

Shares of Theravance fell as much as 4 percent to $12 in
after hours trade, but later rebounded to trade up at $12.57.
They closed at $12.49 Wednesday on Nasdaq.
(Reporting by Krishnakali Sengupta in Bangalore; Editing by
Maju Samuel)