Innoviva Inc. Reports First Quarter 2017 Financial Results
BRISBANE, Calif.--(BUSINESS WIRE)--Innoviva, Inc. (NASDAQ: INVA) today reported financial results for the first quarter of 2017. Gross royalties earned on net sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® from Glaxo Group Limited (GSK) during the first quarter of 2017 were $43.7 million, up 60% from $27.4 million in the first quarter of 2016.
Income from operations for the first quarter of 2017 was $29.3 million (including $4.2 million in proxy contest costs), compared with $17.5 million for the same period in 2016. Adjusted EBITDA rose 55% to $35.4 million, from $22.8 million in the first quarter of 2016.
Net cash and cash equivalents, short-term investments and marketable securities totaled $169.8 million as of March 31, 2017. Royalties receivable from GSK totaled $43.7 million at March 31, 2017. Innoviva recently announced that on May 15, 2017, the next interest payment date under its non-recourse royalty notes due 2029 (the 2029 Notes), Innoviva will prepay $50 million in outstanding principal, along with the required principal repayment of $6.7 million.
“We are very pleased with the continued progress that was made during the first quarter in the ongoing global commercialization of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. Consistent with historic patterns, U.S. wholesaler inventory levels decreased in the first quarter of the year following increases in Q4 2016. As a result, TRx market share remains our primary analytical measure of commercial progress in the U.S. According to IMS, BREO and ANORO gained 3.9% and 2.7% in TRx market share respectively since the beginning of 2017 to reach all-time highs of 16.1% and 12.3% respectively, for the week ended April 14, 2017,” said Michael W. Aguiar, President and Chief Executive Officer of Innoviva. “We also continued to execute on our capital return plan, with the announcement of a $50 million early redemption of our 2029 Notes, representing a third of our 2017 capital return plan of $150 million.”
Income from operations for the first quarter of 2017 was $29.3 million (including $4.2 million in proxy contest costs), compared with $17.5 million for the same period in 2016. Adjusted EBITDA rose 55% to $35.4 million, from $22.8 million in the first quarter of 2016.
Net cash and cash equivalents, short-term investments and marketable securities totaled $169.8 million as of March 31, 2017. Royalties receivable from GSK totaled $43.7 million at March 31, 2017. Innoviva recently announced that on May 15, 2017, the next interest payment date under its non-recourse royalty notes due 2029 (the 2029 Notes), Innoviva will prepay $50 million in outstanding principal, along with the required principal repayment of $6.7 million.
“We are very pleased with the continued progress that was made during the first quarter in the ongoing global commercialization of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. Consistent with historic patterns, U.S. wholesaler inventory levels decreased in the first quarter of the year following increases in Q4 2016. As a result, TRx market share remains our primary analytical measure of commercial progress in the U.S. According to IMS, BREO and ANORO gained 3.9% and 2.7% in TRx market share respectively since the beginning of 2017 to reach all-time highs of 16.1% and 12.3% respectively, for the week ended April 14, 2017,” said Michael W. Aguiar, President and Chief Executive Officer of Innoviva. “We also continued to execute on our capital return plan, with the announcement of a $50 million early redemption of our 2029 Notes, representing a third of our 2017 capital return plan of $150 million.”