Innoviva Reports Third Quarter 2024 Financial Results; Highlights Recent Company Progress
Core royalty platform continued strong performance, receiving GSK royalties of
“For the third quarter of 2024, we continue to deliver strong revenue growth, with solid performance from our core GSK royalty assets, and accelerating sales from our IST commercial products, GIAPREZA®, XACDURO® and XERAVA®. Since the formation of IST, now in its second year of operation, we have shown consistent sales expansion in our commercial products, primarily driven by increasing product demand, validating our investment in hospital-based therapeutics,” said
Financial Highlights
-
Royalty revenue: Third quarter 2024 gross royalty revenue from
Glaxo Group Limited (“GSK”) was$60.5 million , compared to$57.0 million for the third quarter 2023. -
Net Product Sales: Third quarter 2024 net product sales were
$27.8 million , which includedU.S. net product sales of$19.7 million and ex-U.S. product sales of$8.1 million .U.S. net product sales consisted of$13.1 million from GIAPREZA®,$2.3 million from XERAVA®, and$4.3 million from XACDURO®, a 68% increase compared to$11.8 million for the third quarter 2023. -
License Revenue: Third quarter 2024 license revenue of
$4.6 million included product development cost-sharing reimbursements from our partner. -
Equity and long-term investments: Third quarter 2024 unfavorable net change in fair value of equity and long-term investments of
$35.2 million was primarily due to lower share price of Armata Pharmaceuticals (“Armata”). -
Net income: Net income of
$1.2 million , or$0.02 basic per share, for the third quarter of 2024, compared to a net income of$82.0 million , or$1.26 basic per share, for the third quarter of 2023. -
Cash and cash equivalents: Totaled
$260.6 million . Royalty and product sales receivables totaled$91.1 million as ofSeptember 30, 2024 .
Key Business and R&D Highlights
-
XACDURO® (sulbactam for injection; durlobactam for injection), co-packaged for intravenous use, a targeted antibacterial treatment for patients with hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia (HABP/VABP) caused by susceptible isolates of Acinetobacter baumannii-calcoaceticus complex.
-
XACDURO®was recently nominated for the 2024
Prix Galien USA Award for Best Biotechnology Product, which recognizes excellence in scientific innovation that improves the state of human health.
-
XACDURO®was recently nominated for the 2024
-
Zoliflodacin: a potential first-in-class, single dose, oral antibiotic is currently being developed in partnership with
The Global Antibiotic Research & Development Partnership ("GARDP") for the treatment of patients with uncomplicated gonorrhea.-
In
September 2024 , we presented additional findings on our investigational agent zoliflodacin at the 2024Sexually Transmitted Infections Prevention Conference inAtlanta . The first oral presentation demonstrated that zoliflodacin had potent in vitro activity against 200 clinical isolates, consistent with previousU.S. surveillance data. The second presentation demonstrated that microbiological cure rates for specific subgroups were comparable to the primary endpoint analysis. Safety in these subgroups was also comparable. -
In
October 2024 , we had five presentations at IDWeek 2024, which took place inLos Angeles . One oral presentation on zoliflodacin included a review of the unique public-private partnership that led the clinical development of zoliflodacin. The second presentation highlighted the activity of sulbactam-durlobactam and standard-of-care antibiotics against Acinetobacter baumannii-calcoaceticus complex for hospitalized patients in theU.S. Three posters were presented including two on zoliflodacin: In vitro activity against baseline isolates inU.S. participants from the phase 3 trial and a pharmacometrics analysis supporting dose selection. Surveillance data of eravacycline against clinical pathogens, collected worldwide from multiple infections sites during 2018-2022 was also presented. -
We continue to advance zoliflodacin following its successful Phase 3 clinical trial results and expect to submit an NDA to the
U.S. FDA in early 2025.
-
In
About
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.
|
||||||||||||||||
Condensed Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
(in thousands, except per share data) | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
Revenue: | ||||||||||||||||
Royalty revenue, net (1) |
$ |
57,056 |
|
$ |
53,558 |
|
$ |
179,213 |
|
$ |
172,681 |
|
||||
Net product sales |
|
27,822 |
|
|
13,701 |
|
|
68,557 |
|
|
40,942 |
|
||||
License revenue |
|
4,630 |
|
|
- |
|
|
19,135 |
|
|
11,000 |
|
||||
Total revenue |
|
89,508 |
|
|
67,259 |
|
|
266,905 |
|
|
224,623 |
|
||||
Expenses: | ||||||||||||||||
Cost of products sold (inclusive of amortization of inventory fair value adjustments) |
|
9,990 |
|
|
10,182 |
|
|
29,433 |
|
|
27,910 |
|
||||
Cost of license revenue |
|
- |
|
|
- |
|
|
- |
|
|
1,600 |
|
||||
Selling, general and administrative |
|
26,219 |
|
|
28,636 |
|
|
84,364 |
|
|
71,913 |
|
||||
Research and development |
|
3,551 |
|
|
3,989 |
|
|
9,989 |
|
|
31,566 |
|
||||
Amortization of acquired intangible assets |
|
6,511 |
|
|
6,511 |
|
|
19,391 |
|
|
15,274 |
|
||||
Changes in fair values of equity method investments, net |
|
18,231 |
|
|
(71,980 |
) |
|
42,997 |
|
|
(67,886 |
) |
||||
Changes in fair values of equity and long-term investments, net |
|
16,936 |
|
|
2,640 |
|
|
60,827 |
|
|
4,887 |
|
||||
Interest and dividend income |
|
(5,500 |
) |
|
(4,114 |
) |
|
(13,373 |
) |
|
(11,032 |
) |
||||
Interest expense |
|
5,807 |
|
|
4,396 |
|
|
17,460 |
|
|
13,205 |
|
||||
Other expense, net |
|
914 |
|
|
1,047 |
|
|
3,123 |
|
|
4,289 |
|
||||
Total expenses, net |
|
82,659 |
|
|
(18,693 |
) |
|
254,211 |
|
|
91,726 |
|
||||
Income before income taxes |
|
6,849 |
|
|
85,952 |
|
|
12,694 |
|
|
132,897 |
|
||||
Income tax expense, net |
|
5,636 |
|
|
3,906 |
|
|
9,634 |
|
|
14,706 |
|
||||
Net income and comprehensive income |
$ |
1,213 |
|
$ |
82,046 |
|
$ |
3,060 |
|
$ |
118,191 |
|
||||
Net income per share | ||||||||||||||||
Basic |
$ |
0.02 |
|
$ |
1.26 |
|
$ |
0.05 |
|
$ |
1.79 |
|
||||
Diluted |
$ |
0.02 |
|
$ |
0.98 |
|
$ |
0.05 |
|
$ |
1.45 |
|
||||
Shares used to compute net income per share | ||||||||||||||||
Basic |
|
62,569 |
|
|
64,953 |
|
|
62,759 |
|
|
66,016 |
|
||||
Diluted |
|
62,951 |
|
|
86,164 |
|
|
63,020 |
|
|
87,504 |
|
(1) Total net revenue is comprised of the following (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
|
|
|||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
||
(unaudited) | (unaudited) | |||||||||||||||
Royalties |
$ |
60,512 |
|
$ |
57,014 |
|
$ |
189,581 |
|
$ |
183,049 |
|
||||
Amortization of capitalized fees |
|
(3,456 |
) |
|
(3,456 |
) |
|
(10,368 |
) |
|
(10,368 |
) |
||||
Royalty revenue, net |
$ |
57,056 |
|
$ |
53,558 |
|
$ |
179,213 |
|
$ |
172,681 |
|
|
|||||
Condensed Consolidated Balance Sheets | |||||
(in thousands) | |||||
(unaudited) | |||||
|
|
||||
|
2024 |
|
|
2023 |
|
Assets | |||||
Cash and cash equivalents |
$ |
260,630 |
$ |
193,513 |
|
Royalty and product sale receivables |
|
91,058 |
|
84,075 |
|
Inventory |
|
34,236 |
|
40,737 |
|
Prepaid expense and other current assets |
|
14,697 |
|
25,894 |
|
Property and equipment, net |
|
544 |
|
483 |
|
Equity and long-term investments |
|
507,718 |
|
560,978 |
|
Capitalized fees paid, net |
|
73,416 |
|
83,784 |
|
Right-of-use assets |
|
2,789 |
|
2,536 |
|
|
|
17,905 |
|
17,905 |
|
Intangible assets |
|
210,944 |
|
230,335 |
|
Deferred tax asset, net |
|
14,875 |
|
- |
|
Other assets |
|
2,800 |
|
3,267 |
|
Total assets |
$ |
1,231,612 |
$ |
1,243,507 |
|
Liabilities and stockholders’ equity | |||||
Other current liabilities |
$ |
30,357 |
$ |
33,435 |
|
Accrued interest payable |
|
833 |
|
3,422 |
|
Deferred revenue |
|
717 |
|
1,277 |
|
Convertible senior notes, due 2025, net |
|
191,843 |
|
191,295 |
|
Convertible senior notes, due 2028, net |
|
255,972 |
|
254,939 |
|
Other long-term liabilities |
|
71,449 |
|
71,870 |
|
Deferred tax liabilities, net |
|
- |
|
563 |
|
Income tax payable, long-term |
|
11,899 |
|
11,751 |
|
|
|
668,542 |
|
674,955 |
|
Total liabilities and stockholders’ equity |
$ |
1,231,612 |
$ |
1,243,507 |
|
|||||||
Cash Flows Summary | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Nine Months Ended | |||||||
|
|||||||
|
2024 |
|
|
|
2023 |
|
|
Net cash provided by operating activities |
$ |
129,451 |
|
$ |
107,808 |
|
|
Net cash used in investing activities |
|
(48,308 |
) |
|
(61,610 |
) |
|
Net cash used in financing activities |
|
(14,026 |
) |
|
(157,250 |
) |
|
Net change |
|
67,117 |
|
|
(111,052 |
) |
|
Cash and cash equivalents at beginning of period |
|
193,513 |
|
|
291,049 |
|
|
Cash and cash equivalents at end of period |
$ |
260,630 |
|
$ |
179,997 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106330461/en/
Corporate Communications
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