Innoviva Reports Strong Second Quarter 2017 Financial Results
- Royalties earned up 73% and net income up 141% compared to second quarter of 2016
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Management to host a conference call and webcast today at
5:00 p.m. Eastern time
Income from operations for the second quarter of 2017 was
Net cash and cash equivalents, short-term investments and marketable
securities totaled
"We are very pleased with the continued strong commercial performance of
RELVAR/BREO ELLIPTA and ANORO ELLIPTA with both products posting record
sales during the second quarter of 2017," said
Recent Highlights
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GSK Net Sales:
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Second quarter 2017 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
$364.3 million , up 74% from $ 209.9 million in the second quarter of 2016, with$232.4 million in net sales from the U.S. market and$131.9 million from non-U.S. markets. -
Second quarter 2017 net sales of ANORO® ELLIPTA® by
GSK were
$110.0 million , up 69% from$65.0 million in the second quarter of 2016, with$75.5 million of sales from the U.S. market and$34.5 million from non-U.S. markets.
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Second quarter 2017 net sales of RELVAR®/BREO®
ELLIPTA® by GSK were
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Capital Returns:
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Early redemption payment of
$50 million on the 2029 Notes made onMay 15, 2017 .
-
Early redemption payment of
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Product Updates:
-
Announced in
May 2017 that Relvar Ellipta significantly improved asthma control in Salford Lung Study patients compared to their usual care.
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Announced in
Additional Financial Results for the Second Quarter of 2017
Total net revenue for the second quarter of 2017 was
Total operating expenses for the second quarter of 2017 were
Net income in the second quarter of 2017 was
Conference Call and Webcast Information
To participate in the live call, dial (877) 837-3908 from the
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 and adding back
interest expense (income), taxes, stock-based compensation expense,
write off of debt issuance costs, depreciation expense and amortization
of capitalized fees paid to a related party.
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 and adding back stock-based
compensation expense, write off of debt issuance costs, depreciation
expense and amortization of capitalized fees paid to a related party.
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® 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, including expected cost savings.
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Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Revenue: | ||||||||||||||||
Royalty revenue from a related party, net | $ | 58,341 | $ | 32,251 | $ | 98,612 | $ | 56,206 | ||||||||
Revenue from collaborative arrangements from a related party | 221 | 221 | 442 | 442 | ||||||||||||
Total revenue (1) | 58,562 | 32,472 | 99,054 | 56,648 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development (2) | 348 | 370 | 702 | 762 | ||||||||||||
General and administrative (2) | 6,077 | 6,225 | 12,635 | 12,477 | ||||||||||||
General and administrative - proxy contest and litigation costs | 4,307 | - | 8,544 | - | ||||||||||||
Total operating expenses | 10,732 | 6,595 | 21,881 | 13,239 | ||||||||||||
Income from operations | 47,830 | 25,877 | 77,173 | 43,409 | ||||||||||||
Other income (expense), net | (786 | ) | 1,719 | (739 | ) | 1,687 | ||||||||||
Interest income | 306 | 157 | 542 | 249 | ||||||||||||
Interest expense | (12,204 | ) | (13,156 | ) | (24,985 | ) | (26,313 | ) | ||||||||
Net income | $ | 35,146 | $ | 14,597 | $ | 51,991 | $ | 19,032 | ||||||||
Basic earnings per share | $ | 0.33 | $ | 0.13 | $ | 0.48 | $ | 0.17 | ||||||||
Diluted earnings per share | $ | 0.30 | $ | 0.13 | $ | 0.46 | $ | 0.17 | ||||||||
Shares used in computing basic earnings per share | 107,614 | 111,359 | 107,468 | 112,005 | ||||||||||||
Shares used in computing diluted earnings per share | 120,463 | 124,316 | 120,317 | 112,531 | ||||||||||||
(1) Revenue is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) |
(unaudited) | |||||||||||||||
Royalties from a related party | $ | 61,797 | $ | 35,707 | $ | 105,524 | $ | 63,118 | ||||||||
Amortization of capitalized fees paid to a related party | (3,456 | ) | (3,456 | ) | (6,912 | ) | (6,912 | ) | ||||||||
Royalty revenue | 58,341 | 32,251 | 98,612 | 56,206 | ||||||||||||
Strategic alliance - MABA program | 221 | 221 | 442 | 442 | ||||||||||||
Total revenue from a related party | $ | 58,562 | $ | 32,472 | $ | 99,054 | $ | 56,648 | ||||||||
(2) Amounts include stock-based compensation expense as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||
(unaudited) |
(unaudited) |
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Research and development | $ | 175 | $ | 172 | $ | 353 | $ | 347 | ||||||||
General and administrative | 2,252 | 2,669 | 4,581 | 4,358 | ||||||||||||
Total stock-based compensation | $ | 2,427 | $ | 2,841 | $ | 4,934 | $ | 4,705 | ||||||||
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Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
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2017 | 2016 | |||||||
(unaudited) | (1) | |||||||
Assets | ||||||||
Cash, cash equivalents and marketable securities | $ | 135,626 | $ | 150,433 | ||||
Other current assets | 62,438 | 47,613 | ||||||
Property and equipment, net | 289 | 368 | ||||||
Capitalized fees paid to a related party, net | 173,633 | 180,545 | ||||||
Other assets | 37 | 37 | ||||||
Total assets | $ | 372,023 | $ | 378,996 | ||||
Liabilities and stockholders' deficit | ||||||||
Other current liabilities | $ | 3,940 | $ | 3,584 | ||||
Accrued interest payable | 7,103 | 7,828 | ||||||
Deferred revenue | 2,657 | 3,099 | ||||||
Convertible subordinated notes, net | 237,858 | 237,597 | ||||||
Non-recourse notes payable, net | 416,035 | 478,496 | ||||||
Other long-term liabilities | 1,159 | 1,383 | ||||||
Stockholders' deficit | (296,729 | ) | (352,991 | ) | ||||
Total liabilities and stockholders' deficit | $ | 372,023 | $ | 378,996 | ||||
(1) The selected consolidated balance sheet amounts at |
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Cash Flows Summary | ||||||||
(in thousands) | ||||||||
Six Months Ended | ||||||||
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2017 | 2016 | |||||||
(unaudited) | ||||||||
Net cash provided by operating activities | $ | 50,400 | $ | 19,710 | ||||
Net cash provided by (used in) investing activities | 24,418 | (12,805 | ) | |||||
Net cash used in financing activities | (65,200 | ) | (53,140 | ) | ||||
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Reconciliation of Non-GAAP Financial Measures to GAAP | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Reconciliation from GAAP net income to adjusted EBITDA: | ||||||||||||
GAAP net income | $ | 35,146 | $ | 14,597 | $ | 51,991 | $ | 19,032 | ||||
Non-GAAP adjustments: | ||||||||||||
Interest expense (income), net | 11,898 | 12,999 | 24,443 | 26,064 | ||||||||
Stock-based compensation | 2,427 | 2,841 | 4,934 | 4,705 | ||||||||
Write off of debt issuance costs | 830 | 154 | 830 | 154 | ||||||||
Depreciation | 39 | 27 | 79 | 55 | ||||||||
Amortization of capitalized fees paid to a related party | 3,456 | 3,456 | 6,912 | 6,912 | ||||||||
Adjusted EBITDA | $ | 53,796 | $ | 34,074 | $ | 89,189 | $ | 56,922 | ||||
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Reconciliation of Non-GAAP Financial Measures to GAAP | ||||||||||||
(in thousands, except per share data) | ||||||||||||
Three Months Ended | Six Months 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 | $ | 35,146 | $ | 14,597 | $ | 51,991 | $ | 19,032 | ||||
Non-GAAP adjustments: | ||||||||||||
Stock-based compensation | 2,427 | 2,841 | 4,934 | 4,705 | ||||||||
Write off of debt issuance costs |
830 | 154 | 830 | 154 | ||||||||
Depreciation | 39 | 27 | 79 | 55 | ||||||||
Amortization of capitalized fees paid to a related party | 3,456 | 3,456 | 6,912 | 6,912 | ||||||||
Adjusted net income | $ | 41,898 | $ | 21,075 | $ | 64,746 | $ | 30,858 | ||||
Adjusted earnings per share | $ | 0.35 | $ | 0.17 | $ | 0.54 | $ | 0.27 | ||||
Shares used in computing diluted earnings per share | 120,463 | 124,316 | 120,317 | 112,531 | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170726006033/en/
Eric d'Esparbes
Sr. Vice President and Chief
Financial Officer
650-238-9640
investor.relations@inva.com
Source:
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