Innoviva Reports Second Quarter 2021 Financial Results
-
Royalties increased by 44% to
$104.3 million in the second quarter of 2021, compared to the same quarter in 2020. -
Repurchased GSK’s full 32% equity stake in
Innoviva for$392 million purchase price. -
Strategically invested an additional
$20 million intoEntasis Therapeutics Holdings Inc. (NASDAQ:ETTX), a leader in anti-infectives development.
-
Gross royalty revenues of
$104.3 million fromGlaxo Group Limited (“GSK”) for the second quarter of 2021 included royalties of$65.9 million from global net sales of RELVAR®/BREO® ELLIPTA®, royalties of$12.0 million from global net sales of ANORO® ELLIPTA® and royalties of$26.4 million from global net sales of TRELEGY® ELLIPTA®.1 -
Increase in fair values of strategic equity and long-term investments of
$45.3 million in the second quarter of 2021 was mainly due to higher net valuation, as ofJune 30, 2021 . -
Income before income taxes increased by 15% to
$136.2 million , compared to the same quarter in 2020. -
Net cash and cash equivalents, excluding
$3.2 million cash balance attributable to a variable interest entity, totaled$40.1 million , and receivables from GSK totaled$104.3 million as ofJune 30, 2021 .
“RELVAR®/BREO® ELLIPTA® global net sales increased meaningfully compared to the second quarter of 2020.
Recent Highlights
-
GSK Net Sales:
-
Second quarter 2021 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
$439.5 million , up 45% from$303.8 million in the same quarter of 2020, with$212.3 million in net sales from the U.S. market and$227.2 million from non-U.S. markets. -
Second quarter 2021 net sales of ANORO® ELLIPTA® by GSK were
$184.0 million , up 7% from$172.3 million in the same quarter of 2020, with$106.0 million net sales from the U.S. market and$78.0 million from non-U.S. markets. -
Second quarter 2021 net sales of TRELEGY® ELLIPTA® by GSK were
$405.9 million , up 69% from$240.5 million in the same quarter of 2020, with$285.5 million in net sales from the U.S. market and$120.4 million in net sales from non-U.S. markets.
-
Second quarter 2021 net sales of RELVAR®/BREO® ELLIPTA® by GSK were
-
Capital Allocation:
-
In
May 2021 , the Company repurchased 32,005,260 shares of its common stock from GSK at$12.25 per share for a total amount (including related transaction fees) of$394.1 million . The repurchased shares represented all of GSK’s equity stake in the Company, which was approximately 32% of the Company’s shares. -
During the second quarter of 2021, the Company’s wholly owned subsidiary,
Innoviva Strategic Opportunities LLC , invested$20.0 million to acquire 10 million shares of Entasis’ common stock and warrants to purchase up to an additional 10 million shares of common stock at$2.00 per share. With this additional investment,Innoviva collectively owned approximately 60.6% of Entasis’ common stock as ofJune 30, 2021 in addition to the warrants.
-
In
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 Statements of Income | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
Revenue: | ||||||||||||||||
Royalty revenue from a related party, net (1) |
$ |
100,806 |
|
$ |
68,946 |
|
$ |
186,324 |
|
$ |
147,624 |
|
||||
Revenue from collaborative arrangements with a related party |
|
- |
|
|
10,000 |
|
|
- |
|
|
10,000 |
|
||||
Total net revenue |
|
100,806 |
|
|
78,946 |
|
|
186,324 |
|
|
157,624 |
|
||||
Operating expenses: | ||||||||||||||||
Research and development |
|
38 |
|
|
559 |
|
|
87 |
|
|
559 |
|
||||
General and administrative |
|
4,228 |
|
|
2,596 |
|
|
10,214 |
|
|
5,159 |
|
||||
Total operating expenses |
|
4,266 |
|
|
3,155 |
|
|
10,301 |
|
|
5,718 |
|
||||
Income from operations |
|
96,540 |
|
|
75,791 |
|
|
176,023 |
|
|
151,906 |
|
||||
Other income (expense), net |
|
(951 |
) |
|
30 |
|
|
(1,384 |
) |
|
98 |
|
||||
Interest income |
|
20 |
|
|
158 |
|
|
50 |
|
|
1,460 |
|
||||
Interest expense |
|
(4,745 |
) |
|
(4,561 |
) |
|
(9,439 |
) |
|
(9,077 |
) |
||||
Changes in fair values of equity and long-term investments, net |
|
45,315 |
|
|
46,698 |
|
|
100,360 |
|
|
68,613 |
|
||||
Income before income taxes |
|
136,179 |
|
|
118,116 |
|
|
265,610 |
|
|
213,000 |
|
||||
Income tax expense, net |
|
25,333 |
|
|
19,891 |
|
|
45,069 |
|
|
35,823 |
|
||||
Net income |
|
110,846 |
|
|
98,225 |
|
|
220,541 |
|
|
177,177 |
|
||||
Net income attributable to noncontrolling interest |
|
21,898 |
|
|
21,381 |
|
|
37,470 |
|
|
34,896 |
|
||||
Net income attributable to |
$ |
88,948 |
|
$ |
76,844 |
|
$ |
183,071 |
|
$ |
142,281 |
|
||||
Basic net income per share attributable to |
$ |
1.01 |
|
$ |
0.76 |
|
$ |
1.93 |
|
$ |
1.40 |
|
||||
Diluted net income per share attributable to |
$ |
0.90 |
|
$ |
0.69 |
|
$ |
1.73 |
|
$ |
1.27 |
|
||||
Shares used to compute basic net income per share |
|
88,423 |
|
|
101,324 |
|
|
94,858 |
|
|
101,280 |
|
||||
Shares used to compute diluted net income per share |
|
100,639 |
|
|
113,545 |
|
|
107,096 |
|
|
113,527 |
|
||||
(1) Total net revenue from a related party is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|||||
(unaudited) | (unaudited) | |||||||||||||||
Royalties from a related party |
$ |
104,262 |
|
$ |
72,402 |
|
$ |
193,236 |
|
$ |
154,536 |
|
||||
Amortization of capitalized fees paid to a related party |
|
(3,456 |
) |
|
(3,456 |
) |
|
(6,912 |
) |
|
(6,912 |
) |
||||
Royalty revenue from a related party, net |
$ |
100,806 |
|
$ |
68,946 |
|
$ |
186,324 |
|
$ |
147,624 |
|
||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
2021 |
2020 |
|||||||
(unaudited) |
|
(1) |
||||||
Assets | ||||||||
Cash, cash equivalents and marketable securities |
$ |
43,265 |
$ |
246,487 |
|
|||
Other current assets |
|
104,996 |
|
95,571 |
|
|||
Property and equipment, net |
|
19 |
|
28 |
|
|||
Equity and long-term investments |
|
473,677 |
|
438,258 |
|
|||
Capitalized fees paid to a related party, net |
|
118,341 |
|
125,253 |
|
|||
Deferred tax assets, net |
|
48,690 |
|
93,759 |
|
|||
Other assets |
|
162 |
|
214 |
|
|||
Total assets |
$ |
789,150 |
$ |
999,570 |
|
|||
Liabilities and stockholders’ equity | ||||||||
Other current liabilities |
$ |
1,219 |
$ |
1,958 |
|
|||
Accrued interest payable |
|
4,152 |
|
4,152 |
|
|||
Convertible subordinated notes, net |
|
240,072 |
|
239,783 |
|
|||
Convertible senior notes, net |
|
149,917 |
|
145,734 |
|
|||
Other long-term liabilities |
|
45 |
|
106 |
|
|||
|
329,780 |
|
539,912 |
|
||||
Noncontrolling interest |
|
63,965 |
|
67,925 |
|
|||
Total liabilities and stockholders’ equity |
$ |
789,150 |
$ |
999,570 |
|
|||
(1) The selected consolidated balance sheet amounts at |
||||||||
Cash Flows Summary | ||||||||
(in thousands) | ||||||||
Six Months Ended |
||||||||
|
2021 |
|
|
2020 |
|
|||
(unaudited) | ||||||||
Net cash provided by operating activities |
$ |
168,721 |
|
$ |
153,275 |
|
||
Net cash provided by investing activities |
|
63,627 |
|
|
9,044 |
|
||
Net cash used in financing activities |
|
(435,570 |
) |
|
(27,268 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210728006003/en/
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