Innoviva Reports Third Quarter 2018 Financial Results
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Total net revenue rose 26.8% to
$61.7 million compared with the third quarter of 2017. -
Net income attributable to
Innoviva stockholders increased 98.1% from the third quarter of 2017 to$47.1 million , or$0.43 per diluted share. -
The Company made a partial repayment of
$110.0 million on its Term B loan.
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Gross royalty revenues of
$65.1 million fromGlaxo Group Limited (GSK) for the third quarter of 2018 included royalties of$51.7 million from global net sales of RELVAR®/BREO® ELLIPTA®, royalties of$9.8 million from global net sales of ANORO® ELLIPTA® and$3.6 million from global net sales of TRELEGY® ELLIPTA®.1 -
Total operating expenses for the third quarter of 2018 were
$4.0 million (including$2.5 million of cash severance expenses) compared with$8.6 million (including$2.5 million of proxy contest related litigation costs) in the third quarter of 2017. Total non-cash operating expenses for the third quarter of 2018 included($0.9) million in stock-based compensation compared to$2.5 million in stock-based compensation for the third quarter of 2017. -
Net income attributable to
Innoviva stockholders in the third quarter of 2018 was$47.1 million or$0.43 per diluted share, up 98.1% from the third quarter of 2017. -
Net cash and cash equivalents, short-term investments and marketable
securities totaled
$55.5 million , and royalties receivable from GSK totaled$65.1 million as ofSeptember 30, 2018 .
“During the quarter,
Recent Highlights
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GSK Net Sales:
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Third quarter 2018 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$345.0 million , up 16.0% from$297.4 million in the third quarter of 2017, with$180.4 million in net sales from the U.S. market and$164.6 million from non-U.S. markets. -
Third quarter 2018 net sales of ANORO® ELLIPTA® by
GSK were
$150.8 million , up 34.7% from$111.9 million in the third quarter of 2017, with$99.7 million net sales from the U.S. market and$51.1 million from non-U.S. markets. -
Third quarter 2018 net sales of TRELEGY® ELLIPTA® by
GSK were
$55.7 million with$41.3 million in net sales from the U.S. market and$14.4 million in net sales from non-U.S. markets. TRELEGY® ELLIPTA® was approved in September, 2017.
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Third quarter 2018 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
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Product Updates:
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In
September 2018 , the European Medicines Agency’s (EMA)Committee for Medicinal Products for Human Use (CHMP) issued a positive opinion supporting the expanded label of TRELEGY® ELLIPTA® (fluticasone furoate/umeclidinium/ vilanterol ‘FF/UMEC/VI’) in chronic obstructive pulmonary disease (COPD).
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In
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Capital Structure:
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Made a partial prepayment in
August 2018 of$110.0 million on the principal amount outstanding under the Company’s Term B loan.
-
Made a partial prepayment in
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 Operations | ||||||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenue: | ||||||||||||||||||||
Royalty revenue from a related party, net | $ | 61,680 | $ | 48,422 | $ | 181,146 | $ | 147,034 | ||||||||||||
Revenue from collaborative arrangements from a related party | - | 221 | - | 663 | ||||||||||||||||
Total net revenue (1) | 61,680 | 48,643 | 181,146 | 147,697 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | - | 311 | - | 1,013 | ||||||||||||||||
General and administrative | 1,489 | 5,822 | 11,711 | 18,457 | ||||||||||||||||
General and administrative - proxy contest and litigation costs | - | 2,488 | - | 11,032 | ||||||||||||||||
General and administrative - cash severance expenses | 2,530 | - | 5,704 | - | ||||||||||||||||
General and administrative - related party | - | - | 2,700 | - | ||||||||||||||||
Total operating expenses | 4,019 | 8,621 | 20,115 | 30,502 | ||||||||||||||||
Income from operations | 57,661 | 40,022 | 161,031 | 117,195 | ||||||||||||||||
Other expense, net | (2,626 | ) | (6,369 | ) | (5,686 | ) | (7,108 | ) | ||||||||||||
Interest income | 370 | 376 | 1,141 | 918 | ||||||||||||||||
Interest expense | (5,238 | ) | (10,262 | ) | (19,373 | ) | (35,247 | ) | ||||||||||||
Net income | 50,167 | 23,767 | 137,113 | 75,758 | ||||||||||||||||
Net income attributable to noncontrolling interest | 3,078 | - | 5,817 | - | ||||||||||||||||
Net income attributable to Innoviva stockholders | $ | 47,089 | $ | 23,767 | $ | 131,296 | $ | 75,758 | ||||||||||||
Basic net income per share attributable to Innoviva stockholders | $ | 0.47 | $ | 0.22 | $ | 1.30 | $ | 0.71 | ||||||||||||
Diluted net income per share attributable to Innoviva stockholders | $ | 0.43 | $ | 0.21 | $ | 1.19 | $ | 0.67 | ||||||||||||
Shares used to compute basic net income per share | 100,936 | 106,841 | 100,806 | 107,236 | ||||||||||||||||
Shares used to compute diluted net income per share | 113,363 | 119,796 | 113,444 | 120,120 | ||||||||||||||||
(1) Total net revenue is comprised of the following (in thousands):
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Royalties from a related party | $ | 65,136 | $ | 51,878 | $ | 191,514 | $ | 157,402 | ||||||||||||
Amortization of capitalized fees paid to a related party | (3,456 | ) | (3,456 | ) | (10,368 | ) | (10,368 | ) | ||||||||||||
Royalty revenue | 61,680 | 48,422 | 181,146 | 147,034 | ||||||||||||||||
Strategic alliance - MABA program license | - | 221 | - | 663 | ||||||||||||||||
Total net revenue | $ | 61,680 | $ | 48,643 | $ | 181,146 | $ | 147,697 | ||||||||||||
INNOVIVA, INC. | ||||||||||
Condensed Consolidated Balance Sheets | ||||||||||
(in thousands) | ||||||||||
September 30, | December 31, | |||||||||
2018 | 2017 | |||||||||
(unaudited) | (1) | |||||||||
Assets | ||||||||||
Cash, cash equivalents and marketable securities | $ | 55,480 | $ | 129,075 | ||||||
Other current assets | 65,649 | 71,294 | ||||||||
Property and equipment, net | 173 | 209 | ||||||||
Capitalized fees paid to a related party, net | 156,354 | 166,722 | ||||||||
Other assets | 37 | 37 | ||||||||
Total assets | $ | 277,693 | $ | 367,337 | ||||||
Liabilities and stockholders’ deficit | ||||||||||
Other current liabilities | $ | 2,524 | $ | 3,822 | ||||||
Accrued interest payable | 1,775 | 5,920 | ||||||||
Convertible subordinated notes, net | 238,525 | 238,123 | ||||||||
Convertible senior notes, net | 129,040 | 124,158 | ||||||||
Senior secured term loans, net | 13,437 | 237,081 | ||||||||
Other long-term liabilities | 668 | 940 | ||||||||
Innoviva stockholders’ deficit | (111,357 | ) | (242,859 | ) | ||||||
Noncontrolling interest | 3,081 | 152 | ||||||||
Total liabilities and stockholders’ deficit | $ | 277,693 | $ | 367,337 |
(1) The selected consolidated balance sheet amounts at
INNOVIVA, INC. | ||||||||||
Cash Flows Summary | ||||||||||
(in thousands) | ||||||||||
Nine Months Ended | ||||||||||
September 30, | ||||||||||
2018 | 2017 | |||||||||
(unaudited) | ||||||||||
Net cash provided by operating activities | $ | 161,754 | $ | 93,890 | ||||||
Net cash provided by investing activities | 49,113 | 2,644 | ||||||||
Net cash used in financing activities | (235,588 | ) | (76,133 | ) | ||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20181031005813/en/
Source:
Investors & Media:
Sloane & Company
Dan Zacchei
/ Alex Kovtun
212-446-9500
dzacchei@sloanepr.com
/ akovtun@sloanepr.com