BRISBANE, Calif.--(BUSINESS WIRE)--Innoviva, Inc. (NASDAQ: INVA) (the Company) today reported financial results for the second quarter of 2017. Gross royalties earned on net sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® from Glaxo Group Limited (GSK) during the second quarter of 2017 were $61.8 million, up 73% from $35.7 million in the second quarter of 2016.
Income from operations for the second quarter of 2017 was $47.8 million (including $4.3 million in proxy contest and litigation costs), compared with $25.9 million for the same period in 2016. Adjusted EBITDA rose 58% to $53.8 million for the second quarter of 2017, from $34.1 million in the second quarter of 2016.
Net cash and cash equivalents, short-term investments and marketable securities totaled $135.6 million as of June 30, 2017, net of the $50 million prepayment on the Company’s non-recourse royalty notes due 2029 (the 2029 Notes) made in May 2017. Royalties receivable from GSK totaled $61.8 million at June 30, 2017.
“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 Michael W. Aguiar, President and Chief Executive Officer of Innoviva. “According to IMS, BREO and ANORO gained 5.2% and 3.6%, respectively, in TRx market share in the U.S. since the beginning of 2017 to reach record highs of 17.4% and 13.5%, respectively, for the week ended July 14, 2017. As we’ve stated previously, TRx market share remains our primary analytical measure of commercial progress and we are pleased with both products’ recent performance.”
Recent Highlights
- GSK Net Sales:
- 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.
- Capital Returns:
- Early redemption payment of $50 million on the 2029 Notes made on May 15, 2017.
- Product Updates:
- Announced in May 2017 that Relvar Ellipta significantly improved asthma control in Salford Lung Study patients compared to their usual care.
Additional Financial Results for the Second Quarter of 2017
Total net revenue for the second quarter of 2017 was $58.6 million, compared with $32.5 million in the second quarter of 2016. Gross royalty revenues for the second quarter of 2017 included royalties of $54.6 million from global net sales of RELVAR®/BREO® ELLIPTA® and royalties of $7.2 million from global net sales of ANORO® ELLIPTA®.
Total operating expenses for the second quarter of 2017 were $10.7 million compared with $6.6 million in the second quarter of 2016, an increase of $4.1 million. The entire increase during the second quarter was due to $4.3 million of proxy contest and associated litigation costs.
Net income in the second quarter of 2017 was $35.1 million, or $0.33 basic earnings per share, compared with a net income of $14.6 million, or $0.13 basic earnings per share, in the second quarter of 2016. Adjusted earnings per share for the second quarter of 2017 totaled $0.35, compared with $0.17 in the second quarter of 2016.
Conference Call and Webcast Information
To participate in the live call, dial (877) 837-3908 from the U.S., or (973) 890-8166 for international callers, and enter Conference ID: 54997412. A live webcast of the call will be available at: http://edge.media-server.com/m/p/67zqjqfo or from the investor relations section of the Company website at www.inva.com and will be archived for 30 days. A telephone replay of the call will be available for seven days, through August 2, 2017 by dialing (404) 537-3406 and entering Conference ID: 54997412.
