Innoviva Reports First Quarter 2019 Financial Results
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Total net revenue increased by 5% to
$55.2 million in the first quarter of 2019, compared to the same quarter in 2018. -
Income before income taxes increased by 60% to
$48.5 million in the first quarter of 2019, compared to the same quarter in 2018.
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Gross royalty revenues of
$58.6 million fromGlaxo Group Limited (“GSK”) for the first quarter of 2019 included royalties of$42.7 million from global net sales of RELVAR®/BREO® ELLIPTA®, royalties of$8.6 million from global net sales of ANORO® ELLIPTA® and$7.3 million from global net sales of TRELEGY® ELLIPTA®.1 -
Total operating expenses for the first quarter of 2019 were
$3.0 million compared with$11.7 million (including$2.7 million payment to a related party pursuant to a settlement agreement, and$3.2 million in cash severance payments) in the first quarter of 2018. Stock-based compensation for the first quarter of 2019 was$0.6 million compared to$2.2 million for the first quarter of 2018.
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Net cash and cash equivalents, short-term investments and marketable
securities totaled
$192.2 million , and royalties receivable from GSK totaled$58.6 million , as ofMarch 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.”
Recent Highlights
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GSK Net Sales:
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First quarter 2019 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$284.9 million , down 7% from$307.7 million in the first quarter of 2018, with$100.1 million in net sales from the U.S. market and$184.8 million from non-U.S. markets. -
First quarter 2019 net sales of ANORO® ELLIPTA® by
GSK were
$131.8 million , down 2% from$134.2 million in the first quarter of 2018, with$75.7 million net sales from the U.S. market and$56.1 million from non-U.S. markets. -
First quarter 2019 net sales of TRELEGY® ELLIPTA® by
GSK were
$112.7 million , up significantly from$14.6 million in the first quarter of 2018, with$85.1 million in net sales from the U.S. market and$27.6 million in net sales from non-U.S. markets.
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First quarter 2019 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
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Product Updates:
The Pharmaceuticals and Medical Devices Agency of Japan approved 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 inJapan .
1 | For TRELEGY ® ELLIPTA®, Innoviva is entitled to 15% of royalty payments made by GSK that are assigned to TRC, LLC. | |
About
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.
INNOVIVA, INC. |
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Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except per share data) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2019 | 2018 | ||||||||
Revenue: | |||||||||
Royalty revenue from a related party, net (1) | $ 55,183 | $ 52,380 | |||||||
Operating expenses: | |||||||||
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) | |||||||
Interest income | 975 | 391 | |||||||
Interest expense | (4,617) | (7,657) | |||||||
Income before income taxes | 48,527 | 30,330 | |||||||
Income tax expense, net | 8,508 | - | |||||||
Net income | 40,019 | 30,330 | |||||||
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): |
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Three Months Ended | |||||||||
March 31, | |||||||||
2019 | 2018 | ||||||||
(unaudited) | |||||||||
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 | |||||||
INNOVIVA, INC. |
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Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
March 31, | December 31, | |||||||||
2019 | 2018 | |||||||||
(unaudited) | (1) | |||||||||
Assets | ||||||||||
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 | ||||||||
Other assets | 37 | 37 | ||||||||
Total assets | $ 590,114 | $ 548,193 | ||||||||
Liabilities and stockholders’ equity |
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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 | ||||||||
Noncontrolling interest | 11,698 | 5,469 | ||||||||
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. |
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INNOVIVA, INC. | ||||||||||
Cash Flows Summary | ||||||||||
(in thousands) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
2019 | 2018 | |||||||||
(unaudited) | ||||||||||
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) | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190501006005/en/
Source:
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