Innoviva Reports Fourth Quarter and Full Year 2016 Financial Results
- 2016 royalties earned up 119% vs. 2015
-
Royalties earned in Q4 2016 of
$46.8 million , up 80% from Q4 2015 -
Net income for Q4 2016 of
$25.5 million , or$0.24 per share, and adjusted earnings per share of$0.26 per share -
Announced a new
$150 million capital return plan for 2017 -
Management will host a conference call and webcast today at
5:00 p.m. Eastern time
Income from operations for the fourth quarter of 2016 was
Net cash and cash equivalents, short-term investments and marketable
securities totaled
"We are very pleased with the continued progress that was made during
the fourth quarter in the ongoing global commercialization of
RELVAR/BREO ELLIPTA and ANORO ELLIPTA. According to IMS,
Recent Highlights
-
GSK Net Sales:
-
Fourth quarter 2016 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$273.0 million , up 76% from$154.7 million in the fourth quarter of 2015, with$157.7 million in net sales from the U.S. market and$115.3 million from non-U.S. markets. -
Fourth quarter 2016 net sales of ANORO® ELLIPTA® by
GSK approximately doubled to
$90.7 million , from$45.4 million in the fourth quarter of 2015, with$63.3 million of sales from the U.S. market and$27.4 million from non-U.S. markets.
-
Fourth quarter 2016 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
-
Capital Returns:
-
During the fourth quarter of 2016,
Innoviva repurchased$4.1 million of its convertible subordinated notes due 2023, for net cash of$3.3 million . -
During the fourth quarter of 2016,
Innoviva repurchased$12.5 million inInnoviva common stock. ThroughDecember 31, 2016 ,Innoviva repurchased$103.7 million in stock sinceDecember 2015 at an average price of$10.50 per share.
-
During the fourth quarter of 2016,
-
Corporate Governance:
-
Expanded the Board of
Innoviva by appointingPatrick G. LePore andBarbara Duncan as independent directors.Mr. LePore was formerly Chief Executive Officer and Chairman ofPar Pharmaceuticals, Inc. and currently serves on the Board of Directors of PharMerica Corporation andAgeneBio, Inc. Ms. Duncan was formerly chief financial officer and treasurer at Intercept Pharmaceuticals, Inc. and currently serves on the board of directors ofAevi Genomics Medicine, Inc. , Adaptimmune Therapeutics plc, Jounce Therapeutics, Inc. and ObsEva SA.
-
Expanded the Board of
-
Product Updates:
-
Announced in
November 2016 the regulatory submission by GSK in the US for once-daily closed triple combination therapy (FF/UMEC/VI) for patients with COPD -
Announced in
December 2016 the regulatory approval inJapan for RELVAR®/BREO® ELLIPTA® 100/25 mcg for use in patients with COPD -
Announced in
December 2016 the regulatory submission by GSK in theEuropean Union for once-daily closed triple combination therapy (FF/UMEC/VI) for patients with COPD
-
Announced in
Additional Financial Results for the Fourth Quarter of 2016
Total net revenue for the fourth quarter of 2016 was
Operating expenses for the fourth quarter of 2016 were
Net income in the fourth quarter of 2016 was
Conference Call and Webcast Information
To participate in the live call, dial (877) 837-3908 from the
Note Regarding 2017 Capital Return Program
The company's announcement of its capital return program does not obligate the company to repurchase any specific number of its shares of common stock or dollar amount of its equity or debt. The company will determine when, if and how to proceed with any repurchase transactions under the program, as well as the amount of any such transactions, based upon, among other things, the company's evaluation of its liquidity and capital needs (including for strategic and other opportunities), its business, results of operations, and financial position and prospects, general financial, economic and market conditions, prevailing market prices for the company's shares of common stock and debt, corporate, regulatory and legal requirements, and other conditions and factors deemed relevant by the company's management and Board of Directors from time to time. The capital return program may be suspended or discontinued at any time. There can be no assurance as to the actual volume of any share or debt repurchases in any given period or over the term of the program, if any, or as to the manner or terms of any such transactions. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
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 (loss) and
adding back interest expense (income), taxes, stock-based compensation
expense, depreciation expense and amortization of capitalized fees paid
to a related party.
Adjusted earnings per share is determined by taking Adjusted net income
(loss) and dividing the total by the fully diluted number of shares
outstanding used to calculate the GAAP diluted EPS. Adjusted net income
(loss) is determined by taking GAAP net income (loss) and adding back
stock-based compensation expense, depreciation expense and amortization
of capitalized fees paid to a related party,
Adjusted EBITDA, adjusted net income (loss) and adjusted earnings per
share should not be considered in isolation or as a substitute to net
income/loss, income/loss 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® 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 | Year Ended | |||||||||||||||
|
|
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
Royalty revenue from a related party, net | $ | 43,391 | $ | 22,615 | $ | 132,684 | $ | 53,064 | ||||||||
Revenue from collaborative arrangements from a related party | 221 | 221 | 885 | 885 | ||||||||||||
Total revenue (1) | 43,612 | 22,836 | 133,569 | 53,949 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development (2) | 345 | 722 | 1,393 | 2,619 | ||||||||||||
General and administrative (2) | 5,606 | 4,821 | 23,188 | 19,750 | ||||||||||||
Total operating expenses | 5,951 | 5,543 | 24,581 | 22,369 | ||||||||||||
Income from operations | 37,661 | 17,293 | 108,988 | 31,580 | ||||||||||||
Other income (expense), net | 638 | 3 | 2,382 | 1,120 | ||||||||||||
Interest income | 171 | 52 | 582 | 343 | ||||||||||||
Interest expense | (13,000 | ) | (13,047 | ) | (52,416 | ) | (51,803 | ) | ||||||||
Net income (loss) | $ | 25,470 | $ | 4,301 | $ | 59,536 | $ | (18,760 | ) | |||||||
Basic earnings per share | $ | 0.24 | $ | 0.04 | $ | 0.54 | $ | (0.16 | ) | |||||||
Diluted earnings per share | $ | 0.22 | $ | 0.04 | $ | 0.53 | $ | (0.16 | ) | |||||||
Shares used in computing basic earnings per share | 107,640 | 115,184 | 110,280 | 115,372 | ||||||||||||
Shares used in computing diluted earnings per share | 120,188 | 115,482 | 123,233 | 115,372 | ||||||||||||
Cash dividend declared per common share | $ | - | $ | - | $ | - | $ | 0.75 |
(1) Revenue is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
|
|
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Royalties from a related party | $ | 46,847 | $ | 26,071 | $ | 146,507 | $ | 66,887 | ||||||||
Amortization of capitalized fees paid to a related party | (3,456 | ) | (3,456 | ) | (13,823 | ) | (13,823 | ) | ||||||||
Royalty revenue | 43,391 | 22,615 | 132,684 | 53,064 | ||||||||||||
Strategic alliance - MABA program | 221 | 221 | 885 | 885 | ||||||||||||
Total revenue from a related party | $ | 43,612 | $ | 22,836 | $ | 133,569 | $ | 53,949 |
(2) Amounts include stock-based compensation expense as follows (in thousands): | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
|
|
|||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Research and development | $ | 142 | $ | 349 | $ | 632 | $ | 1,036 | ||||
General and administrative | 1,732 | 1,301 | 7,665 | 5,837 | ||||||||
Total stock-based compensation | $ | 1,874 | $ | 1,650 | $ | 8,297 | $ | 6,873 |
|
||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
|
|
|||||||
2016 | 2015 | |||||||
(unaudited) | (1) | |||||||
Assets | ||||||||
Cash, cash equivalents and marketable securities | $ | 150,433 | $ | 187,283 | ||||
Other current assets | 47,613 | 27,042 | ||||||
Property and equipment, net | 368 | 221 | ||||||
Capitalized fees paid to a related party, net | 180,545 | 194,368 | ||||||
Other assets | 37 | 18 | ||||||
Total assets | $ | 378,996 | $ | 408,932 | ||||
Liabilities and stockholders' deficit | ||||||||
Other current liabilities | $ | 3,584 | $ | 4,695 | ||||
Accrued interest payable | 7,828 | 7,911 | ||||||
Deferred revenue | 3,099 | 3,984 | ||||||
Convertible subordinated notes, net | 237,597 | 250,992 | ||||||
Non-recourse notes payable, net | 478,496 | 482,139 | ||||||
Other long-term liabilities | 1,383 | 1,856 | ||||||
Stockholders' deficit | (352,991 | ) | (342,645 | ) | ||||
Total liabilities and stockholders' deficit | $ | 378,996 | $ | 408,932 | ||||
(1) The selected consolidated balance sheet amounts at |
|
||||||||
Cash Flows Summary | ||||||||
(in thousands) | ||||||||
Year Ended | ||||||||
|
||||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
Net cash provided by operating activities | $ | 60,984 | $ | 10,131 | ||||
Net cash provided by (used in) investing activities | (4,580 | ) | 159,168 | |||||
Net cash used in financing activities | (97,568 | ) | (106,919 | ) |
|
|||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results | |||||||||||||
(in thousands) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
|
|
||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(unaudited) | (unaudited) | ||||||||||||
Reconciliation from GAAP net income (loss) to adjusted EBITDA: | |||||||||||||
GAAP net income (loss) | $ | 25,470 | $ | 4,301 | $ | 59,536 | $ | (18,760 | ) | ||||
Non-GAAP adjustments: | |||||||||||||
Interest expense (income), net | 12,829 | 12,995 | 51,834 | 51,460 | |||||||||
Stock-based compensation | 1,874 | 1,650 | 8,297 | 6,873 | |||||||||
Depreciation | 41 | 28 | 131 | 110 | |||||||||
Amortization of capitalized fees paid to a related party | 3,456 | 3,456 | 13,823 | 13,823 | |||||||||
Adjusted EBITDA | $ | 43,670 | $ | 22,430 | $ | 133,621 | $ | 53,506 |
|
|||||||||||||
Reconciliation of GAAP to Non-GAAP Operating Results | |||||||||||||
(in thousands, except per share data) | |||||||||||||
Three Months Ended | Year Ended | ||||||||||||
|
|
||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(unaudited) | (unaudited) | ||||||||||||
Reconciliation from GAAP net income (loss) to adjusted net income for computing adjusted earnings per share: | |||||||||||||
GAAP net income (loss) | $ | 25,470 | $ | 4,301 | $ | 59,536 | $ | (18,760 | ) | ||||
Non-GAAP adjustments: | |||||||||||||
Stock-based compensation | 1,874 | 1,650 | 8,297 | 6,873 | |||||||||
Depreciation | 41 | 28 | 131 | 110 | |||||||||
Amortization of capitalized fees paid to a related party | 3,456 | 3,456 | 13,823 | 13,823 | |||||||||
Adjusted net income | $ | 30,841 | $ | 9,435 | $ | 81,787 | $ | 2,046 | |||||
Adjusted earnings per share | $ | 0.26 | $ | 0.08 | $ | 0.66 | $ | 0.02 | |||||
Shares used in computing diluted earnings per share | 120,188 | 115,482 | 123,233 | 115,372 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170209006220/en/
Eric d'Esparbes
Sr. Vice President and Chief
Financial Officer
650-238-9640
investor.relations@inva.com
Source:
News Provided by Acquire Media