Innoviva Reports Record Fourth Quarter and Full Year 2017 Financial Results
-
Royalties earned of
$70.5 million in the fourth quarter of 2017, up 51% from the fourth quarter of 2016. -
Royalties earned in 2017 reached
$227.9 million , up 56% from 2016. -
Net income attributable to
Innoviva stockholders of$58.4 million for the fourth quarter of 2017 (up 129% from the fourth quarter of 2016), or$0.55 per basic share. -
Management to host a conference call and webcast today at
5:00 p.m. eastern time .
Income from operations for the fourth quarter of 2017 was
Net cash and cash equivalents, short-term investments and marketable
securities totaled
"We had a successful fourth quarter of 2017 that included strong
commercial performance of RELVAR®/BREO® ELLIPTA®,
ANORO® ELLIPTA®, the initiation of sales by GSK in
the U.S. market of TRELEGY® ELLIPTA®, the
completion of our 2017
Recent Highlights
-
GSK Net Sales:
-
Fourth quarter 2017 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$405.3 million , up 48% from$273.0 million in the fourth quarter of 2016, with$241.6 million in net sales from the U.S. market and$163.7 million from non-U.S. markets. -
Fourth quarter 2017 net sales of ANORO® ELLIPTA® by
GSK were
$147.3 million , up 62% from$90.7 million in the fourth quarter of 2016, with$103.3 million of sales from the U.S. market and$44.0 million from non-U.S. markets. -
Fourth quarter 2017 net sales of TRELEGY® ELLIPTA® by
GSK were
$2.8 million in the U.S. market.
-
Fourth quarter 2017 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
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Product Updates:
- Announced positive data from a study comparing ANORO® ELLIPTA® and Stiolto Respimat, for symptomatic patients with chronic obstructive pulmonary disease (COPD).
-
Announced in
November 2017 the filing of a supplemental New Drug Application with theU.S. Food and Drug Administration for an expanded indication for the use of TRELEGY® ELLIPTA® in COPD.
-
Capital Return Program:
-
Completed in
December 2017 the$80.0 million ASR program by purchasing 6.1 million shares of common stock at an average price of$13.09 per share. -
In 2017, in the aggregate,
Innoviva repurchased$97.5 million of common stock or 7.4 million shares (7% of outstanding shares at the beginning of the year), and repaid$85.9 million of its long term debt.
-
Completed in
Additional Financial Results for the Fourth Quarter and Full Year 2017
Total net royalty revenue for the fourth quarter of 2017 was
For the full year 2017, net royalty revenues were
Total operating expenses for the fourth quarter of 2017 were
For the full year 2017, total operating expenses were
Net income attributable to
For the full year 2017, net income attributable to
Adjusted EBITDA for the fourth quarter of 2017 was
Conference Call and Webcast Information
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in
accordance with generally accepted accounting principles in
Adjusted EBITDA is determined by taking GAAP net income attributable to
Adjusted earnings per share is determined by taking adjusted net income
and dividing the total by the fully diluted number of shares outstanding
used to calculate the GAAP diluted EPS. Adjusted net income is
determined by taking GAAP net income attributable to
Adjusted EBITDA, adjusted net income and adjusted earnings per share
should not be considered in isolation or as a substitute to net income,
income from operations, cash flows from operating activities, earnings
per share or any other measure of financial performance presented in
accordance with GAAP. Adjusted earnings per share is not intended to
represent cash flow per share and does not represent a measure of
liquidity or cash available for distribution. The principal limitation
of these non-GAAP financial measures is that it excludes significant
elements that are required by GAAP to be recorded in
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.
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Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
Royalty revenue from a related party, net | $ | 67,084 | $ | 43,391 | $ | 214,118 | $ | 132,684 | ||||||||
Revenue from collaborative arrangements from a related party | 2,436 | 221 | 3,099 | 885 | ||||||||||||
Total revenue (1) | 69,520 | 43,612 | 217,217 | 133,569 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development (2) | 342 | 345 | 1,355 | 1,393 | ||||||||||||
General and administrative (2) | 5,690 | 5,606 | 24,147 | 23,188 | ||||||||||||
General and administrative - proxy contest and litigation costs | (2,921 | ) | - | 8,111 | - | |||||||||||
Total operating expenses | 3,111 | 5,951 | 33,613 | 24,581 | ||||||||||||
Income from operations | 66,409 | 37,661 | 183,604 | 108,988 | ||||||||||||
Other income (expense), net | 66 | 638 | (7,042 | ) | 2,382 | |||||||||||
Interest income | 393 | 171 | 1,311 | 582 | ||||||||||||
Interest expense | (8,354 | ) | (13,000 | ) | (43,601 | ) | (52,416 | ) | ||||||||
Net income | 58,514 | 25,470 | 134,272 | 59,536 | ||||||||||||
Net income attributable to noncontrolling interest | 129 | - | 129 | - | ||||||||||||
Net income attributable to |
$ | 58,385 | $ | 25,470 | $ | 134,143 | $ | 59,536 | ||||||||
Basic earnings per share | $ | 0.55 | $ | 0.24 | $ | 1.25 | $ | 0.54 | ||||||||
Diluted earnings per share | $ | 0.50 | $ | 0.22 | $ | 1.17 | $ | 0.53 | ||||||||
Shares used in computing basic earnings per share | 106,156 | 107,640 | 106,945 | 110,280 | ||||||||||||
Shares used in computing diluted earnings per share | 119,189 | 120,188 | 119,866 | 123,233 | ||||||||||||
(1) Revenue is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Royalties from a related party | $ | 70,539 | $ | 46,847 | $ | 227,941 | $ | 146,507 | ||||||||
Amortization of capitalized fees paid to a related party | (3,455 | ) | (3,456 | ) | (13,823 | ) | (13,823 | ) | ||||||||
Royalty revenue | 67,084 | 43,391 | 214,118 | 132,684 | ||||||||||||
Strategic alliance - MABA program | 2,436 | 221 | 3,099 | 885 | ||||||||||||
Total revenue from a related party | $ | 69,520 | $ | 43,612 | $ | 217,217 | $ | 133,569 | ||||||||
(2) Amounts include stock-based compensation expense as follows (in thousands): | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Research and development | $ | 164 | $ | 142 | $ | 697 | $ | 632 | ||||
General and administrative | 2,263 | 1,732 | 9,136 | 7,665 | ||||||||
Total stock-based compensation | $ | 2,427 | $ | 1,874 | $ | 9,833 | $ | 8,297 | ||||
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Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
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2017 | 2016 | |||||||
(unaudited) |
(1) |
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Assets | ||||||||
Cash, cash equivalents and marketable securities | $ | 129,075 | $ | 150,433 | ||||
Related party receivables from collaborative arrangements | 70,540 | 46,847 | ||||||
Property and equipment, net | 209 | 368 | ||||||
Capitalized fees paid to a related party, net | 166,722 | 180,545 | ||||||
Other assets | 791 | 803 | ||||||
Total assets | $ | 367,337 | $ | 378,996 | ||||
Liabilities and stockholders' deficit | ||||||||
Other current liabilities | $ | 3,822 | $ | 3,584 | ||||
Accrued interest payable | 5,920 | 7,828 | ||||||
Deferred revenue | - | 3,099 | ||||||
Convertible subordinated notes, net | 238,123 | 237,597 | ||||||
Convertible senior notes, net | 124,158 | - | ||||||
Senior secured term loans, net | 237,081 | - | ||||||
Non-recourse notes, net | - | 478,496 | ||||||
Other long-term liabilities | 940 | 1,383 | ||||||
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(242,859 | ) | (352,991 | ) | ||||
Noncontrolling interest | 152 | - | ||||||
Total liabilities and stockholders' deficit | $ | 367,337 | $ | 378,996 | ||||
(1) The selected consolidated balance sheet amounts at |
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Cash Flows Summary | ||||||||
(in thousands) | ||||||||
Year Ended | ||||||||
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2017 | 2016 | |||||||
(unaudited) | ||||||||
Net cash provided by operating activities | $ | 141,748 | $ | 60,984 | ||||
Net cash used in investing activities | (23,236 | ) | (4,580 | ) | ||||
Net cash used in financing activities | (163,192 | ) | (97,568 | ) | ||||
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Reconciliation of Non-GAAP Financial Measures to GAAP | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Reconciliation from GAAP net income to adjusted EBITDA: | ||||||||||||
GAAP net income attributable to |
$ | 58,385 | $ | 25,470 | $ | 134,143 | $ | 59,536 | ||||
Non-GAAP adjustments: | ||||||||||||
Interest expense (income), net | 7,961 | 12,829 | 42,290 | 51,834 | ||||||||
Stock-based compensation | 2,427 | 1,874 | 9,833 | 8,297 | ||||||||
Write off of debt issuance costs | - | - | 7,256 | - | ||||||||
Depreciation | 40 | 41 | 159 | 131 | ||||||||
Amortization of capitalized fees paid to a related party | 3,455 | 3,456 | 13,823 | 13,823 | ||||||||
Adjusted EBITDA | $ | 72,268 | $ | 43,670 | $ | 207,504 | $ | 133,621 | ||||
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Reconciliation of Non-GAAP Financial Measures to GAAP | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Reconciliation from GAAP net income to adjusted net income for computing adjusted earnings per share: | ||||||||||||
GAAP net income attributable to |
$ | 58,385 | $ | 25,470 | $ | 134,143 | $ | 59,536 | ||||
Non-GAAP adjustments: | ||||||||||||
Stock-based compensation | 2,427 | 1,874 | 9,833 | 8,297 | ||||||||
Write off of debt issuance costs | - | - | 7,256 | - | ||||||||
Amortization of debt discount | 1,434 | - | 2,268 | - | ||||||||
Depreciation | 40 | 41 | 159 | 131 | ||||||||
Amortization of capitalized fees paid to a related party | 3,455 | 3,456 | 13,823 | 13,823 | ||||||||
Adjusted net income | $ | 65,741 | $ | 30,841 | $ | 167,482 | $ | 81,787 | ||||
Adjusted earnings per share | $ | 0.55 | $ | 0.26 | $ | 1.40 | $ | 0.66 | ||||
Shares used in computing diluted earnings per share | 119,189 | 120,188 | 119,866 | 123,233 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20180208006330/en/
Eric d'Esparbes
Interim Principal Executive
Officer and Sr. Vice President and Chief Financial Officer
650-238-9640
investor.relations@inva.com
Source:
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