Accelerated Notes Redemption Resulting from the Company's Continuing
Growth in Royalty Revenue and Cash Flows
BRISBANE, Calif.--(BUSINESS WIRE)--
Innoviva, Inc. (the "Company" or "Innoviva") (Nasdaq: INVA) today
announced that on May 15, 2017, the next interest payment date under its
non-recourse royalty notes due 2029 (the "Royalty Notes"), Innoviva will
prepay $50 million in outstanding principal, representing a substantial
portion of the Company's $150 million capital return plan for 2017.
The partial prepayment of the Royalty Notes coincides with the first
date that the Royalty Notes may be prepaid without penalty and is part
of the Company's ongoing commitment to return capital to its investors
and optimize its capital structure. Since the first quarter of 2015, the
Company has returned more than $210 million to investors and it
currently intends to return up to $150 million in capital to investors
in 2017, including the prepayment.
Michael W. Aguiar, President and Chief Executive Officer of Innoviva,
stated, "This latest step by management and the Board of accelerating
the payment of our Royalty Notes further illustrates our commitment to
returning capital to investors and reducing leverage and interest costs
for Innoviva. All of these steps are part of our 2017 Capital Return
Plan, as previously outlined to investors during our first quarter
earnings call."
About Innoviva
Innoviva is focused on bringing compelling new medicines to patients in
areas of unmet need by leveraging its significant expertise in the
development, commercialization and financial management of
bio-pharmaceuticals. Innoviva's portfolio is anchored by the respiratory
assets partnered with Glaxo Group Limited (GSK), including RELVAR®/BREO®
ELLIPTA® and ANORO® ELLIPTA®, which were jointly developed by Innoviva
and GSK. Under the agreement with GSK, Innoviva is eligible to receive
associated royalty revenues from RELVAR®/BREO® ELLIPTA®, ANORO®
ELLIPTA®. In addition, Innoviva retains a 15 percent economic interest
in future payments made by GSK for earlier-stage programs partnered with
Theravance BioPharma, Inc., including the closed triple combination
therapy for Chronic Obstructive Pulmonary Disease (COPD). For more
information, please visit Innoviva's website at www.inva.com.
ANORO®, RELVAR®, BREO® and ELLIPTA® are trademarks of the
GlaxoSmithKline group of companies.
Forward-Looking Statements
This press release contains certain "forward-looking" statements as that
term is defined in the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans,
objectives and future events. Innoviva intends such forward-looking
statements to be covered by the safe harbor provisions for
forward-looking statements contained in Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform Act of
1995. The words "anticipate", "expect", "goal", "intend", "objective",
"opportunity", "plan", "potential", "target" and similar expressions are
intended to identify such forward-looking statements. Such
forward-looking statements involve substantial risks, uncertainties and
assumptions. These statements are based on the current estimates and
assumptions of the management of Innoviva as of the date of this press
release and are subject to risks, uncertainties, changes in
circumstances, assumptions and other factors that may cause the actual
results of Innoviva to be materially different from those reflected in
the forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements include, among others, risks related to:
lower than expected future royalty revenue from respiratory products
partnered with GSK, the commercialization of RELVAR®/BREO® ELLIPTA® and
ANORO® ELLIPTA® in the jurisdictions in which these products have been
approved; the strategies, plans and objectives of Innoviva (including
Innoviva's growth strategy and corporate development initiatives beyond
the existing respiratory portfolio); the timing, manner, amount and
planned growth of anticipated potential capital returns to shareholders
(including, without limitation, statements regarding Innoviva's
expectations of future purchases under its capital return programs and
future cash dividends); the status and timing of clinical studies, data
analysis and communication of results; the potential benefits and
mechanisms of action of product candidates; expectations for product
candidates through development and commercialization; the timing of
regulatory approval of product candidates; and projections of revenue,
expenses and other financial items. Other risks affecting Innoviva are
described under the headings "Risk Factors" and "Management's Discussion
and Analysis of Financial Condition and Results of Operations" contained
in Innoviva's Annual Report on Form 10-K for the year ended December 31,
2016, which is on file with the Securities and Exchange Commission
("SEC") and available on the SEC's website at www.sec.gov.
Additional factors may be described in those sections of Innoviva's
Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, to
be filed with the SEC in the second quarter of 2017. In addition to the
risks described above and in Innoviva's other filings with the SEC,
other unknown or unpredictable factors also could affect Innoviva's
results. Past performance is not necessarily indicative of future
results. No forward-looking statements can be guaranteed and actual
results may differ materially from such statements. Given these
uncertainties, you should not place undue reliance on these
forward-looking statements. The information in this press release is
provided only as of the date hereof, and Innoviva assumes no obligation
to update its forward-looking statements on account of new information,
future events or otherwise, except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170410005299/en/
Investor Contact:
Innoviva, Inc.
Eric d'Esparbes
Senior
Vice President and Chief Financial Officer
650-238-9640
investor.relations@inva.com
or
Media
Contacts:
Abernathy MacGregor
Patrick Tucker or Ina
McGuinness
212-371-5999 or 213-630-6550
pct@abmac.com
or ina@abmac.com
Source: Innoviva, Inc.
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