UNITED STATES
SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
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SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. )
THERAVANCE, INC.
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(Name of Issuer)
Common Stock, $0.01 par value per share
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(Title of Class of Securities)
88338T104
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(CUSIP Number)
July 6, 2006
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(Date of Event which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
Continued on following pages
Page 1 of 9 Pages
Exhibit Index: Page 8
SCHEDULE 13G
CUSIP No.: 88338T104 Page 2 of 9 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
CHESAPEAKE PARTNERS MANAGEMENT CO., INC.
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
Maryland
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5. Sole Voting Power 0
Number of Shares ----------------------------------------------------------
Beneficially Owned 6. Shared Voting Power 2,612,122
by Each Reporting ----------------------------------------------------------
Person With 7. Sole Dispositive Power 0
----------------------------------------------------------
8. Shared Dispositive Power 2,612,122
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,612,122
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares
(See Instructions) [ ]
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11. Percent of Class Represented by Amount in Row (9)
5.2%
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12. Type of Reporting Person:
CO
SCHEDULE 13G
CUSIP No.: 88338T104 Page 3 of 9 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
MARK D. LERNER
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
United States of America
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5. Sole Voting Power 0
Number of Shares ----------------------------------------------------------
Beneficially Owned 6. Shared Voting Power 2,612,122
by Each Reporting ----------------------------------------------------------
Person With 7. Sole Dispositive Power 0
----------------------------------------------------------
8. Shared Dispositive Power 2,612,122
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,612,122
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10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)[ ]
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11. Percent of Class Represented by Amount in Row (9)
5.2%
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12. Type of Reporting Person:
HC; IA
SCHEDULE 13G
CUSIP No.: 88338T104 Page 4 of 9 Pages
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1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only).
TRACI LERNER
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2. Check the Appropriate Box if a Member of a Group
(a) [ ]
(b) [ ]
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3. SEC Use Only
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4. Citizenship or Place of Organization
United States of America
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5. Sole Voting Power 0
Number of Shares ----------------------------------------------------------
Beneficially Owned 6. Shared Voting Power 2,612,122
by Each Reporting ----------------------------------------------------------
Person With 7. Sole Dispositive Power 0
----------------------------------------------------------
8. Shared Dispositive Power 2,612,122
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9. Aggregate Amount Beneficially Owned by Each Reporting Person
2,612,122
--------------------------------------------------------------------------------
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions) [ ]
--------------------------------------------------------------------------------
11. Percent of Class Represented by Amount in Row (9)
5.2%
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12. Type of Reporting Person:
HC; IA
Page 5 of 9 Pages
Item 1(a). Name of Issuer:
Theravance, Inc. (the "Issuer")
Item 1(b). Address of Issuer's Principal Executive Offices:
901 Gateway Boulevard, San Francisco, CA 94080.
Item 2(a). Name of Person Filing
This Statement is filed on behalf of each of the following
persons (collectively, the "Reporting Persons"):
i) Chesapeake Partners Management Co., Inc. ("CPMC");
ii) Mark D. Lerner ("Mr. Lerner"); and
iii) Traci Lerner ("Ms. Lerner").
This Statement relates to Shares (as defined herein) held
for the accounts of each of Chesapeake Partners Limited Partnership, a
Maryland limited partnership ("CPLP"); and Chesapeake Partners International
Ltd., a Cayman Islands exempted company ("CPINTL"). CPMC serves as investment
manager to each of CPLP and CPINTL. CPMC also serves as the General Partner of
CPLP. Mr. Lerner and Ms. Lerner are officers of CPMC. In such capacities, each
of CPMC, Mr. Lerner and Ms. Lerner may be deemed to have voting and investment
power over the Shares held for each of CPLP and CPINTL.
Item 2(b). Address of Principal Business Office or, if None, Residence:
The address of the principal business office of each of
CPMC, Mr. Lerner and Ms. Lerner is 1829 Reisterstown Road, Suite 420,
Baltimore, Maryland 21208.
Item 2(c). Citizenship
i) CPMC is a Maryland corporation;
ii) Mr. Lerner is a citizen of the United States of America;
and
iii) Ms. Lerner is a citizen of the United States of America.
Item 2(d). Title of Class of Securities:
Common Stock, $0.01 par value per share (the "Shares").
Item 2(e). CUSIP Number:
88338T104
Item 3. If This Statement is Filed Pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), Check Whether the Person Filing is a:
This Item 3 is not applicable.
Page 6 of 9 Pages
Item 4. Ownership:
Item 4(a). Amount Beneficially Owned:
As of July 14, 2006, each of CPMC, Mr. Lerner and Ms. Lerner
may be deemed to be the beneficial owner of 2,612,122 Shares. This amount
consists of (A) 1,313,163 Shares held for the account of CPLP, and (B)
1,298,859 Shares held for the account of CPINTL.
Item 4(b). Percent of Class:
The number of Shares of which CPMC may be deemed to be the
beneficial owner constitutes approximately 5.2% of the total number of Shares
outstanding.
Item 4(c). Number of Shares of which such person has:
CPMC, Mr. Lerner and Ms. Lerner:
--------------------------------
(i) Sole power to vote or direct the vote: 0
(ii) Shared power to vote or direct the vote: 2,612,122
(iii) Sole power to dispose or direct the disposition of: 0
(iv) Shared power to dispose or direct the disposition of: 2,612,122
Item 5. Ownership of Five Percent or Less of a Class:
This Item 5 is not applicable.
Item 6. Ownership of More than Five Percent on Behalf of Another
Person:
This Item 6 is not applicable.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent
Holding Company:
See disclosure in Item 2 hereof.
Item 8. Identification and Classification of Members of the Group:
This Item 8 is not applicable.
Item 9. Notice of Dissolution of Group:
This Item 9 is not applicable.
Item 10. Certification:
By signing below each of the Reporting Persons certifies
that, to the best of their knowledge and belief, the securities referred to
above were not acquired and are not held for the purpose of or with the effect
of changing or influencing the control of the issuer of the securities and
were not acquired and are not held in connection with or as a participant in
any transaction having that purpose or effect.
Page 7 of 9 Pages
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete
and correct.
Date: July 17, 2006 CHESAPEAKE PARTNERS MANAGEMENT CO., INC.
By: /s/ Mark D. Lerner
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Name: Mark D. Lerner
Title: Vice President
Date: July 17, 2006 MARK D. LERNER
/s/ Mark D. Lerner
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Date: July 17, 2006 TRACI LERNER
/s/ Traci Lerner
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Page 8 of 9 Pages
EXHIBIT INDEX
Ex. Page No.
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A. Joint Filing Agreement, dated July 17, 2006 by and
among Chesapeake Partners Management Co., Inc., Mark D. Lerner
and Traci Lerner............................................... 9
Page 9 of 9 Pages
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13G with
respect to the Common Stock of Theravance, Inc. dated as of July 17, 2006 is,
and any amendments thereto (including amendments on Schedule 13D) signed by
each of the undersigned shall be, filed on behalf of each of us pursuant to
and in accordance with the provisions of Rule 13d-1(k) under the Securities
Exchange Act of 1934, as amended.
Date: July 17, 2006 CHESAPEAKE PARTNERS MANAGEMENT CO., INC.
By: /s/ Mark D. Lerner
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Name: Mark D. Lerner
Title: Vice President
Date: July 17, 2006 MARK D. LERNER
/s/ Mark D. Lerner
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Date: July 17, 2006 TRACI LERNER
/s/ Traci Lerner
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