Innoviva Reports First Quarter 2019 Financial Results
Total net revenue increased by 5% to
$55.2 millionin the first quarter of 2019, compared to the same quarter in 2018.
Income before income taxes increased by 60% to
$48.5 millionin the first quarter of 2019, compared to the same quarter in 2018.
Gross royalty revenues of
$58.6 millionfrom Glaxo Group Limited(“GSK”) for the first quarter of 2019 included royalties of $42.7 millionfrom global net sales of RELVAR®/BREO® ELLIPTA®, royalties of $8.6 millionfrom global net sales of ANORO® ELLIPTA® and $7.3 millionfrom global net sales of TRELEGY® ELLIPTA®.1
Total operating expenses for the first quarter of 2019 were
$3.0 millioncompared with $11.7 million(including $2.7 millionpayment to a related party pursuant to a settlement agreement, and $3.2 millionin cash severance payments) in the first quarter of 2018. Stock-based compensation for the first quarter of 2019 was $0.6 millioncompared to $2.2 millionfor the first quarter of 2018.
Net cash and cash equivalents, short-term investments and marketable
$192.2 million, and royalties receivable from GSK totaled $58.6 million, as of March 31, 2019.
“Global net sales of RELVAR®/BREO® ELLIPTA®
decreased 7% versus the first quarter of 2018. U.S. net sales declined
27% as increased pricing discounts and payer rebate adjustments related
to prior periods offset volume growth. Non-U.S. net sales continued
their growth and increased 8%, driven by market share gains in certain
European markets and growth in
Hulme continued, “During the first quarter, our operating expenses remained well-controlled and the strong conversion of royalty revenues to operating cash flows continued. The management and board are examining options regarding management of capital and strategic actions in order to maximize future shareholder value.”
GSK Net Sales:
First quarter 2019 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$284.9 million, down 7% from $307.7 millionin the first quarter of 2018, with $100.1 millionin net sales from the U.S. market and $184.8 millionfrom non-U.S. markets.
First quarter 2019 net sales of ANORO® ELLIPTA® by
$131.8 million, down 2% from $134.2 millionin the first quarter of 2018, with $75.7 millionnet sales from the U.S. market and $56.1 millionfrom non-U.S. markets.
First quarter 2019 net sales of TRELEGY® ELLIPTA® by
$112.7 million, up significantly from $14.6 millionin the first quarter of 2018, with $85.1 millionin net sales from the U.S. market and $27.6 millionin net sales from non-U.S. markets.
- First quarter 2019 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
The Pharmaceuticals and Medical Devices Agency of Japanapproved TRELEGY® ELLIPTA® (fluticasone furoate/umeclidinium/vilanterol ‘FF/UMEC/VI’) for the treatment of chronic obstructive pulmonary disease (COPD). TRELEGY® ELLIPTA® is the first triple therapy in a single inhaler approved in Japan.
|1||For TRELEGY ® ELLIPTA®, Innoviva is entitled to 15% of royalty payments made by GSK that are assigned to TRC, LLC.|
ANORO®, RELVAR®, BREO®, TRELEGY® and ELLIPTA® are trademarks of the GlaxoSmithKline group of companies.
Forward Looking Statements
This press release contains certain “forward-looking” statements as that
term is defined in the Private Securities Litigation Reform Act of 1995
regarding, among other things, statements relating to goals, plans,
objectives and future events.
|Condensed Consolidated Statements of Operations|
|(in thousands, except per share data)|
|Three Months Ended|
|Royalty revenue from a related party, net (1)||$ 55,183||$ 52,380|
|General and administrative||3,015||5,811|
|General and administrative - cash severance expenses||-||3,174|
|General and administrative - related party||-||2,700|
|Total operating expenses||3,015||11,685|
|Income from operations||52,168||40,695|
|Other income (expense), net||1||(3,099)|
|Income before income taxes||48,527||30,330|
|Income tax expense, net||8,508||-|
|Net income attributable to noncontrolling interest||6,229||749|
|Net income attributable to Innoviva stockholders||$ 33,790||$ 29,581|
|Basic net income per share attributable to Innoviva stockholders||$ 0.33||$ 0.29|
|Diluted net income per share attributable to Innoviva stockholders||$ 0.31||$ 0.27|
|Shares used to compute basic net income per share||101,059||100,604|
|Shares used to compute diluted net income per share||113,376||113,566|
(1) Total net revenue from a related party is comprised of the following (in thousands):
|Three Months Ended|
|Royalties from a related party||$ 58,639||$ 55,836|
|Amortization of capitalized fees paid to a related party||(3,456)||(3,456)|
|Royalty revenue from a related party, net||$ 55,183||$ 52,380|
|Condensed Consolidated Balance Sheets|
|March 31,||December 31,|
|Cash, cash equivalents and marketable securities||$ 192,178||$ 114,908|
|Other current assets||59,341||84,135|
|Property and equipment, net||148||160|
|Operating lease right-of-use asset||1,421||-|
|Capitalized fees paid to a related party, net||149,443||152,899|
|Deferred tax assets||187,546||196,054|
|Total assets||$ 590,114||$ 548,193|
Liabilities and stockholders’ equity
|Other current liabilities||$ 2,035||$ 1,436|
|Accrued interest payable||1,775||4,264|
|Convertible subordinated notes, net||238,799||238,664|
|Convertible senior notes, net||132,468||130,734|
|Senior secured term loans, net||13,477||13,457|
|Other long-term liabilities||1,617||586|
|Innoviva stockholders’ equity||188,245||153,583|
|Total liabilities and stockholders’ equity||$ 590,114||$ 548,193|
(1) The selected consolidated balance sheet amounts at December 31, 2018 are derived from audited financial statements.
|Cash Flows Summary|
|Three Months Ended|
|Net cash provided by operating activities||$ 76,655||$ 49,914|
|Net cash provided by (used in) investing activities||(74,167)||26,513|
|Net cash provided by (used in) financing activities||246||(122,625)|