Innoviva Reports First Quarter 2021 Financial Results
-
Royalties increased by 8% to
$89.0 million in the first quarter of 2021, compared to the same quarter in 2020. -
Invested an additional
$20.0 million intoArmata Pharmaceuticals Inc. (NYSE:ARMP), an anti-infectives leader, in the first quarter of 2021. -
Deborah L. Birx , M.D., appointed to the Company’s Board of Directors.
-
Gross royalty revenues of
$89.0 million fromGlaxo Group Limited (“GSK”) for the first quarter of 2021 included royalties of$56.4 million from global net sales of RELVAR®/BREO® ELLIPTA®, royalties of$10.5 million from global net sales of ANORO® ELLIPTA® and royalties of$22.1 million from global net sales of TRELEGY® ELLIPTA®.1 -
Increase in fair values of equity and long term investments of
$55.0 million in the first quarter of 2021 was mainly due to higher net valuation of our various investments, including common stock and warrants, as ofMarch 31, 2021 . -
Income before income taxes increased by 36% to
$129.4 million , compared to the same quarter in 2020. -
Net cash and cash equivalents, excluding
$3.3 million cash balance attributable to a variable interest entity, totaled$279.6 million , and receivables from GSK totaled$89.0 million as ofMarch 31, 2021 .
“RELVAR®/BREO® ELLIPTA® global net sales increased modestly compared to the first quarter of 2020.
Recent Highlights
-
GSK Net Sales:
-
First quarter 2021 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
$375.9 million , up slightly from$374.3 million in the same quarter of 2020, with$154.6 million in net sales from the U.S. market and$221.3 million from non-U.S. markets. -
First quarter 2021 net sales of ANORO® ELLIPTA® by GSK were
$161.5 million , up 7% from$151.6 million in the same quarter of 2020, with$88.4 million net sales from the U.S. market and$73.1 million from non-U.S. markets. -
First quarter 2021 net sales of TRELEGY® ELLIPTA® by GSK were
$339.8 million , up 37% from$248.2 million in the same quarter of 2020, with$237.5 million in net sales from the U.S. market and$102.3 million in net sales from non-U.S. markets.
-
First quarter 2021 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
-
Capital Allocation:
-
During the first quarter of 2021, the Company’s wholly owned subsidiary,
Innoviva Strategic Opportunities LLC , invested$20.0 million to acquire 6.2 million shares of Armata common stock and an equal number of warrants exercisable at$3.25 per share, which resulted inInnoviva collectively owning approximately 60% of Armata’s outstanding stock (without giving effect to our warrants).
-
During the first quarter of 2021, the Company’s wholly owned subsidiary,
-
New Director:
-
On
March 9, 2021 , the Company appointedDeborah L. Birx , M.D., to its Board of Directors, where she serves as an independent director.Dr. Birx is a world renowned medical expert and leader who most recently served as the response coordinator of theWhite House Coronavirus Task Force . Dr. Birx’s career highlights also include having served as Ambassador-at-Large, when she assumed the role of the Coordinator of the United States Government Activities to Combat HIV/AIDS andU.S. Special Representative for Global Health Diplomacy.Dr. Birx also served as theU.S. Global AIDS Coordinator where she oversaw the President’s Emergency Plan for AIDS Relief (PEPFAR) at theCenters for Disease Control and Prevention and as the Director of theU.S. Military HIV Research Program (USMHRP) at theWalter Reed Army Institute of Research .
-
On
1 For TRELEGY ® ELLIPTA®, the amount represents 100% of royalty payments made by GSK to
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 Balance Sheets | ||||||
(in thousands) | ||||||
|
|
|
||||
2021 |
|
2020 |
||||
(unaudited) |
|
(1) |
||||
Assets | ||||||
Cash, cash equivalents and marketable securities |
$ |
282,890 |
$ |
246,487 |
||
Other current assets |
|
90,043 |
|
95,571 |
||
Property and equipment, net |
|
24 |
|
28 |
||
Equity and long-term investments |
|
519,325 |
|
438,258 |
||
Capitalized fees paid to a related party, net |
|
121,797 |
|
125,253 |
||
Deferred tax assets, net |
|
74,023 |
|
93,759 |
||
Other assets |
|
188 |
|
214 |
||
Total assets |
$ |
1,088,290 |
$ |
999,570 |
||
Liabilities and stockholders’ equity | ||||||
Other current liabilities |
$ |
2,136 |
$ |
1,958 |
||
Accrued interest payable |
|
1,668 |
|
4,152 |
||
Convertible subordinated notes, net |
|
239,925 |
|
239,783 |
||
Convertible senior notes, net |
|
147,803 |
|
145,734 |
||
Other long-term liabilities |
|
77 |
|
106 |
||
|
634,461 |
|
539,912 |
|||
Noncontrolling interest |
|
62,220 |
|
67,925 |
||
Total liabilities and stockholders’ equity |
$ |
1,088,290 |
$ |
999,570 |
(1) The selected consolidated balance sheet amounts at |
Condensed Consolidated Statements of Income | ||||||||
(in thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
2021 |
2020 |
|||||||
Revenue: | ||||||||
Royalty revenue from a related party, net (1) |
$ |
85,518 |
|
$ |
78,678 |
|
||
Operating expenses: | ||||||||
Research and development |
|
49 |
|
|
- |
|
||
General and administrative |
|
5,986 |
|
|
2,563 |
|
||
Total operating expenses |
|
6,035 |
|
|
2,563 |
|
||
Income from operations |
|
79,483 |
|
|
76,115 |
|
||
Other income (expense), net |
|
(433 |
) |
|
68 |
|
||
Interest income |
|
30 |
|
|
1,302 |
|
||
Interest expense |
|
(4,694 |
) |
|
(4,516 |
) |
||
Changes in fair values of equity and long-term investments, net |
|
55,045 |
|
|
21,915 |
|
||
Income before income taxes |
|
129,431 |
|
|
94,884 |
|
||
Income tax expense, net |
|
19,736 |
|
|
15,932 |
|
||
Net income |
|
109,695 |
|
|
78,952 |
|
||
Net income attributable to noncontrolling interest |
|
15,572 |
|
|
13,515 |
|
||
Net income attributable to |
$ |
94,123 |
|
$ |
65,437 |
|
||
Basic net income per share attributable to |
$ |
0.93 |
|
$ |
0.65 |
|
||
Diluted net income per share attributable to |
$ |
0.84 |
|
$ |
0.59 |
|
||
Shares used to compute basic net income per share |
|
101,365 |
|
|
101,235 |
|
||
Shares used to compute diluted net income per share |
|
113,624 |
|
|
113,509 |
|
(1) Total net revenue from a related party is comprised of the following (in thousands):
Three Months Ended | ||||||||
2021 |
2020 |
|||||||
(unaudited) | ||||||||
Royalties from a related party |
$ |
88,974 |
|
$ |
82,134 |
|
||
Amortization of capitalized fees paid to a related party |
|
(3,456 |
) |
|
(3,456 |
) |
||
Royalty revenue from a related party, net |
$ |
85,518 |
|
$ |
78,678 |
|
Cash Flows Summary | ||||||||
(in thousands) | ||||||||
Three Months Ended |
||||||||
2021 |
2020 |
|||||||
(unaudited) | ||||||||
Net cash provided by operating activities |
$ |
84,107 |
|
$ |
73,481 |
|
||
Net cash provided by (used in) investing activities |
|
(26,394 |
) |
|
16,044 |
|
||
Net cash used in financing activities |
|
(21,310 |
) |
|
(15,640 |
) |
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