Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: EARNINGS, Conference, Product/Service, Merger/Acquisition, Filing, Share Issue

Innoviva Reports Third Quarter 2022 Financial Results and Highlights Recent Company Progress


Innoviva, Inc. (NASDAQ: INVA) ("Innoviva" and "the Company"), a diversified holding company with a portfolio of royalties and other healthcare assets, today reported financial results for the third quarter ended September 30, 2022.

Pavel Raifeld, Chief Executive Officer of Innoviva, Inc., stated: "Our diversified core royalty business continues to perform well and deliver strong revenues despite challenging market conditions. RELVAR®/BREO® ELLIPTA® global net sales grew slightly compared to third quarter 2021 with U.S. net sales growth compensating for foreign currency changes and a slowdown in non-U.S. markets. ANORO® ELLIPTA® global net sales decreased by 15% compared to third quarter of 2021 mainly due to pricing pressures and foreign currency changes."

Mr. Raifeld continued: "Over the past quarter, we significantly advanced our strategy with the acquisitions of Entasis and La Jolla, giving us a strong footprint in the hospital and infectious disease space with an attractive growth outlook rooted in a robust portfolio of marketed and pipeline products. Our financials have started to reflect the growing complexity of our business given the newly acquired operating platform which we believe has excellent value creation potential."

"We remain committed to a disciplined, thoughtful, and thorough approach to capital allocation. The new share repurchase program underscores our confidence in Innoviva's prospects and value embedded within our business, supported by the strength of our balance sheet and cashflows, as we seek to take advantage of market dislocations. We explore all avenues in our efforts to create shareholder value," concluded Mr. Raifeld.

Recent Highlights

About Innoviva

Innoviva is a diversified holding company with a portfolio of royalties and other healthcare assets. Innoviva's royalty portfolio includes respiratory assets partnered with Glaxo Group Limited ("GSK"), including RELVAR®/BREO® ELLIPTA® (fluticasone furoate/ vilanterol, "FF/VI") and ANORO® ELLIPTA® (umeclidinium bromide/ vilanterol, "UMEC/VI"). Under the Long-Acting Beta2 Agonist ("LABA") Collaboration Agreement, Innoviva is entitled to receive royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. Innoviva's other healthcare assets include infectious disease and hospital assets stemming from acquisitions of Entasis Therapeutics, including its lead asset sulbactam-durlobactam, and La Jolla Pharmaceutical, including GIAPREZA® (angiotensin II), approved to increase blood pressure in adults with septic or other distributive shock and XERAVA® (eravacycline) for the treatment of complicated intra-abdominal infections in adults

ANORO®, RELVAR® and BREO® are trademarks of the GSK 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. Innoviva intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. The words "anticipate", "expect", "goal", "intend", "objective", "opportunity", "plan", "potential", "target" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve substantial risks, uncertainties, and assumptions. These statements are based on the current estimates and assumptions of the management of Innoviva as of the date of this press release and are subject to known and unknown risks, uncertainties, changes in circumstances, assumptions and other factors that may cause the actual results of Innoviva to be materially different from those reflected in the forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, risks related to: expected cost savings; lower than expected future royalty revenue from respiratory products partnered with GSK; the commercialization of RELVAR®/BREO® ELLIPTA®, ANORO® ELLIPTA®, GIAPREZA® and XERAVA® in the jurisdictions in which these products have been approved; the strategies, plans and objectives of Innoviva (including Innoviva's growth strategy and corporate development initiatives); the timing, manner, and amount of potential capital returns to shareholders; the status and timing of clinical studies, data analysis and communication of results; the potential benefits and mechanisms of action of product candidates; expectations for product candidates through development and commercialization; the timing of regulatory approval of product candidates; and projections of revenue, expenses and other financial items; the impact of the novel coronavirus ("COVID-19"); the timing, manner and amount of capital deployment, including potential capital returns to stockholders; and risks related to the Company's growth strategy. Other risks affecting Innoviva are described under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in Innoviva's Annual Report on Form 10-K for the year ended December 31, 2021 and Quarterly Reports on Form 10-Q, which are on file with the Securities and Exchange Commission ("SEC") and available on the SEC's website at www.sec.gov. Additional risk factors are presented on Form 8-K filed on August 23, 2022. Past performance is not necessarily indicative of future results. No forward-looking statements can be guaranteed, and actual results may differ materially from such statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The information in this press release is provided only as of the date hereof, and Innoviva assumes no obligation to update its forward-looking statements on account of new information, future events or otherwise, except as required by law.

INNOVIVA, INC.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(Unaudited)
 
Three Months Ended Nine Months Ended
September 30, September 30,

 

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:
Royalty revenue, net (1)

$

62,150

 

$

97,862

 

$

260,429

 

$

284,186

 

Net product sales

 

5,107

 

 

-

 

 

5,107

 

 

-

 

Total revenue

 

67,257

 

 

97,862

 

 

265,536

 

 

284,186

 

Expenses:
Cost of products sold (inclusive of amortization of inventory fair value adjustments)

 

3,680

 

 

-

 

 

3,680

 

 

-

 

Selling, general and administrative

 

27,810

 

 

2,860

 

 

46,084

 

 

13,074

 

Research and development

 

11,725

 

 

449

 

 

31,447

 

 

536

 

Amortization of acquired intangible assets

 

1,511

 

 

-

 

 

1,511

 

 

-

 

Gain on TRC sale

 

(266,696

)

 

-

 

 

(266,696

)

 

-

 

Loss on debt extinguishment

 

-

 

 

-

 

 

20,662

 

 

-

 

Changes in fair values of equity and long-term investments, net

 

(130

)

 

(33,613

)

 

67,881

 

 

(133,973

)

Interest and dividend income

 

(2,135

)

 

(453

)

 

(3,181

)

 

(503

)

Interest expense

 

5,096

 

 

4,790

 

 

11,761

 

 

14,229

 

Other expense (income), net

 

(28

)

 

652

 

 

750

 

 

2,036

 

Total expenses

 

(219,167

)

 

(25,315

)

 

(86,101

)

 

(104,601

)

Income before income taxes

 

286,424

 

 

123,177

 

 

351,637

 

 

388,787

 

Income tax expense (benefit), net

 

57,077

 

 

20,531

 

 

63,061

 

 

65,600

 

Net income

 

229,347

 

 

102,646

 

 

288,576

 

 

323,187

 

Net income attributable to noncontrolling interest

 

(36,176

)

 

30,208

 

 

6,341

 

 

67,678

 

Net income attributable to Innoviva stockholders

$

265,523

 

$

72,438

 

$

282,235

 

$

255,509

 

 
Basic net income per share attributable to Innoviva stockholders

$

3.81

 

$

1.04

 

$

4.05

 

$

2.96

 

Diluted net income per share attributable to Innoviva stockholders

$

2.80

 

$

0.90

 

$

3.07

 

$

2.63

 

 
Shares used to compute basic net income per share

 

69,731

 

 

69,458

 

 

69,640

 

 

86,298

 

Shares used to compute diluted net income per share

 

95,830

 

 

81,699

 

 

95,072

 

 

98,536

 

(1) Total net revenue from a related party is comprised of the following (in thousands):
 
Three Months Ended Nine Months Ended
September 30, September 30,

2022

2021

2022

2021

(unaudited) (unaudited)
 
Royalties from a related party

$ 65,606

$ 101,318

$ 270,797

$ 294,554

Amortization of capitalized fees paid to a related party

(3,456)

(3,456)

(10,368)

(10,368)

Royalty revenue from a related party, net

$ 62,150

$ 97,862

$ 260,429

$ 284,186

INNOVIVA, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
September 30, December 31,

 

2022

 

2021

Assets
Cash and cash equivalents

$

300,789

$

201,525

Short-term marketable securities

 

282

 

-

Royalty and product sale receivables

 

72,349

 

110,711

Inventory, net

 

70,807

 

-

Prepaid expense and other current assets

 

10,364

 

1,437

Property and equipment, net

 

165

 

12

Equity and long-term investments

 

489,111

 

483,845

Capitalized fees

 

101,062

 

111,430

Right-of-use assets

 

3,679

 

97

Goodwill

 

15,995

 

-

Intangible assets

 

258,489

 

-

Deferred tax assets, net

 

-

 

17,327

Other assets

 

4,620

 

11

Total assets

$

1,327,712

$

926,395

 
 
Liabilities and stockholders' equity
Other current liabilities

$

25,398

$

1,655

Accrued interest payable

 

5,702

 

4,152

Deferred revenues

 

2,849

 

-

Income tax payable

 

33,804

 

-

Convertible subordinated notes, due 2023, net

 

96,131

 

240,364

Convertible senior notes, due 2025, net

 

190,408

 

154,289

Convertible senior notes, due 2028, net

 

253,271

 

-

Other long term liabilities

 

78,781

 

-

 
Innoviva stockholders' equity

 

641,368

 

414,743

Noncontrolling interest

 

-

 

111,192

 
Total liabilities and stockholders' equity

$

1,327,712

$

926,395

INNOVIVA, INC.
Cash Flows Summary
(in thousands)
(unaudited)
 

Nine Months Ended September 30,

2022

 

2021

Net cash provided by operating activities

$

192,827

 

$

265,432

 

Net cash provided by (used in) investing activities

 

(47,956

)

 

63,627

 

Net cash used in financing activities

 

(45,567

)

 

(440,431

)

Net change

$

99,304

 

$

(111,372

)

Cash and cash equivalents at beginning of period

 

201,525

 

 

246,487

 

Cash, cash equivalents and restricted cash at end of period

$

300,829

 

$

135,115

 


These press releases may also interest you

at 07:45
ATLANTA and NEW YORK, Jan. 28, 2023 /PRNewswire/ ? Cryptocurrency futures trading has become a popular way for traders to gain exposure to the volatile digital asset market without owning the underlying assets themselves. These financial derivatives...

at 07:00
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Argo Blockchain plc ("Argo" or the "Company") and reminds investors of the March 27, 2023 deadline to seek the role of lead plaintiff in a...

at 07:00
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against The Goldman Sachs Group, Inc. ("Goldman Sachs" or the "Company") ....

at 02:40
The global landscape has, in recent years, gone through profound, complex and turbulent changes since the end of the Cold War. In the eyes of geopolitical observers, the ongoing COVID-19 pandemic, the intensifying geopolitical tensions and the...

27 jan 2023
ClaimsFiler, a FREE shareholder information service, reminds investors that they have until February 6, 2023 to file lead plaintiff applications in a securities class action lawsuit against NeoGenomics, Inc. , if they purchased the Company's...

27 jan 2023
ClaimsFiler, a FREE shareholder information service, reminds investors that they have until February 10, 2023 to file lead plaintiff applications in a securities class action lawsuit against Twist Bioscience Corporation , if they purchased the...



News published on 9 november 2022 at 16:15 and distributed by: