Innoviva Reports First Quarter 2020 Financial Results
-
Total net revenue increased by 43% to
$78.7 million in the first quarter of 2020, compared to the same quarter in 2019. -
Income before income taxes increased by 96% to
$94.9 million in the first quarter of 2020, compared to the same quarter in 2019.
-
Gross royalty revenues of
$82.1 million fromGlaxo Group Limited (“GSK”) for the first quarter of 2020 included royalties of$56.1 million from global net sales of RELVAR®/BREO® ELLIPTA®, royalties of$9.9 million from global net sales of ANORO® ELLIPTA® and$16.1 million from global net sales of TRELEGY® ELLIPTA®.[1] -
Total operating expenses for the first quarter of 2020 were
$2.6 million , compared to$3.0 million in the first quarter of 2019. Stock-based compensation for the first quarter of 2020 was$0.4 million , compared to$0.6 million in the first quarter of 2019. -
Changes in fair values of equity investments in the amount of
$21.9 million as ofMarch 31, 2020 reflect the unrealized gains and fair value changes between the total estimated fair value of$46.9 million of our investment in both common stock and warrants of Armata Pharmaceuticals, Inc. (“Armata”) and the total purchase price of$25.0 million . -
Net cash and cash equivalents, short-term investments and marketable securities totaled
$384.0 million , and royalties receivable from GSK totaled$82.1 million , as ofMarch 31, 2020 .
“Global net sales of RELVAR®/BREO® ELLIPTA® increased 31% versus the first quarter of 2019.
Hulme continued, “At this point, the impact of the COVID-19 pandemic on the global sales of our three collaboration products is uncertain. Based on our end-market observations, first quarter sales levels may have benefited from unspecified levels of increased patient inventory stocking. Also, the significant RELVAR ®/BREO ®ELLIPTA® positive prior period rebate adjustment that occurred during the first quarter is not likely to recur in future quarters.”
Hulme concluded, “After the end of the quarter, we were pleased to announce the first closing of a new investment in
Recent Highlights
-
GSK Net Sales:
-
First quarter 2020 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
$374.3 million , up 31% from$284.9 million in the first quarter of 2019, with$147.5 million in net sales from the U.S. market and$226.8 million from non-U.S. markets. -
First quarter 2020 net sales of ANORO® ELLIPTA® by GSK were
$151.6 million , up 15% from$131.8 million in the first quarter of 2019, with$81.8 million net sales from the U.S. market and$69.8 million from non-U.S. markets. -
First quarter 2020 net sales of TRELEGY® ELLIPTA® by GSK were
$248.2 million , up significantly from$112.7 million in the first quarter of 2019, with$172.4 million in net sales from the U.S. market and$75.8 million in net sales from non-U.S. markets.
-
First quarter 2020 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
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Capital Allocation:
-
On
April 12, 2020 ,Innoviva entered into a securities purchase agreement withEntasis Therapeutics, Inc. (NASDAQ: ETTX), pursuant to which it will purchase, upon satisfaction of certain closing conditions, approximately$35.0 million of Entasis common stock and warrant securities. -
During the first quarter of 2020, the Company invested
$25.0 million in 8,710,800 shares of Armata’s common stock and warrants to purchase up to an additional 8,710,800 shares of the common stock at$2.87 per share. As of this initial investment,Innoviva owns approximately 47% of Armata’s common stock as ofMarch 31, 2020 .
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On
1 For TRELEGY ® ELLIPTA®,
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.
Condensed Consolidated Statements of Income | |||||||
(in thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended |
|||||||
|
|||||||
2020 |
2019 |
||||||
Revenue: | |||||||
Royalty revenue from a related party, net (1) |
$ |
78,678 |
|
$ |
55,183 |
|
|
Operating expenses: | |||||||
General and administrative |
|
2,563 |
|
|
3,015 |
|
|
Total operating expenses |
|
2,563 |
|
|
3,015 |
|
|
Income from operations |
|
76,115 |
|
|
52,168 |
|
|
Other income, net |
|
68 |
|
|
1 |
|
|
Interest income |
|
1,302 |
|
|
975 |
|
|
Interest expense |
|
(4,516 |
) |
|
(4,617 |
) |
|
Changes in fair values of equity investments |
|
21,915 |
|
|
- |
|
|
Income before income taxes |
|
94,884 |
|
|
48,527 |
|
|
Income tax expense, net |
|
15,932 |
|
|
8,508 |
|
|
Net income |
|
78,952 |
|
|
40,019 |
|
|
Net income attributable to noncontrolling interest |
|
13,515 |
|
|
6,229 |
|
|
Net income attributable to |
$ |
65,437 |
|
$ |
33,790 |
|
|
Basic net income per share attributable to |
$ |
0.65 |
|
$ |
0.33 |
|
|
Diluted net income per share attributable to |
$ |
0.59 |
|
$ |
0.31 |
|
|
Shares used to compute basic net income per share |
|
101,235 |
|
|
101,059 |
|
|
Shares used to compute diluted net income per share |
|
113,509 |
|
|
113,376 |
|
(1) Total net revenue from a related party is comprised of the following (in thousands): | |||||||
Three Months Ended |
|||||||
|
|||||||
2020 |
|
2019 |
|||||
(unaudited) |
|||||||
Royalties from a related party |
$ |
82,134 |
|
$ |
58,639 |
|
|
Amortization of capitalized fees paid to a related party |
|
(3,456 |
) |
|
(3,456 |
) |
|
Royalty revenue from a related party, net |
$ |
78,678 |
|
$ |
55,183 |
|
Condensed Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
|
|
|
|||||
2020 |
|
2019 |
|||||
(unaudited) |
|
(1) |
|||||
Assets | |||||||
Cash, cash equivalents and marketable securities |
$ |
383,951 |
|
$ |
350,845 |
|
|
Other current assets |
|
82,956 |
|
|
80,389 |
|
|
Property and equipment, net |
|
42 |
|
|
33 |
|
|
Equity investments |
|
46,915 |
|
|
- |
|
|
Capitalized fees paid to a related party, net |
|
135,620 |
|
|
139,076 |
|
|
Deferred tax assets, net |
|
138,239 |
|
|
154,171 |
|
|
Other assets |
|
288 |
|
|
312 |
|
|
Total assets |
$ |
788,011 |
|
$ |
724,826 |
|
|
Liabilities and stockholders’ equity | |||||||
Other current liabilities |
$ |
1,130 |
|
$ |
1,219 |
|
|
Accrued interest payable |
|
1,668 |
|
|
4,152 |
|
|
Convertible subordinated notes, net |
|
239,355 |
|
|
239,217 |
|
|
Convertible senior notes, net |
|
139,797 |
|
|
137,903 |
|
|
Other long-term liabilities |
|
192 |
|
|
219 |
|
|
|
379,543 |
|
|
313,495 |
|
||
Noncontrolling interest |
|
26,326 |
|
|
28,621 |
|
|
Total liabilities and stockholders’ equity |
$ |
788,011 |
|
$ |
724,826 |
|
|
(1) The selected consolidated balance sheet amounts at |
Cash Flows Summary | |||||||
(in thousands) | |||||||
Three Months Ended |
|||||||
2020 |
|
2019 |
|||||
(unaudited) |
|||||||
Net cash provided by operating activities |
$ |
73,481 |
|
$ |
76,655 |
|
|
Net cash provided by (used in) investing activities |
|
16,044 |
|
|
(74,167 |
) |
|
Net cash provided by (used in) financing activities |
|
(15,640 |
) |
|
246 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200429005748/en/
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