INVA Innoviva Inc

Core royalty platform continues to deliver with GSK royalties of $66.0 million for the fourth quarter and $255.6 million for the full year

Innoviva Specialty Therapeutics achieved U.S. net product sales of $24.9 million for the fourth quarter and $80.9 million for the full year, reflecting 47% year-over-year growth

Therapeutics platform strengthened with acquisition of exclusive U.S. commercialization and distribution rights to ZEVTERA® (ceftobiprole), launching mid-2025

Innoviva, Inc. (NASDAQ: INVA) (“Innoviva” or the “Company”), a diversified holding company with a core royalties portfolio, a leading critical care and infectious disease platform known as Innoviva Specialty Therapeutics (“IST”), and a portfolio of strategic investments in healthcare assets, today reported financial results for the fourth quarter and full year ended December 31, 2024, and highlighted select corporate progress and achievements.

Pavel Raifeld, Chief Executive Officer of Innoviva, said: “2024 was an exceptional year for Innoviva. Our core royalty portfolio and therapeutics business both delivered strong year-over-year revenue growth. The excellent performance of IST in 2024 – including revenue growth, new product acquisition through partnership, and significant pipeline progress – is a clear validation of our strategy to build a leading commercial business in critical care and infectious disease.”

Mr. Raifeld continued, “In 2024, IST’s revenue growth was driven by the successful launch of XACDURO® and a renewed commercial strategy unlocking new opportunities for GIAPREZA®. Additionally, both XACDURO® and XERAVA® received favorable guidelines placement, which has helped increase access to patients. We also added a fourth approved product to our leverageable commercial infrastructure by licensing ZEVTERA® in the U.S., showcasing both our potential to be a preferred commercial partner and the value creation opportunities enabled by the strength of our operating platform.” 

“Looking ahead, we anticipate another strong year in 2025 highlighted by an NDA submission for zoliflodacin, the launch of ZEVTERA® in mid-2025, and continued growth for our marketed products, with U.S. net product sales forecasted to exceed $100 million. Backed by nearly $400 million cash and receivables, Innoviva is a well-capitalized company focused on continued value creation through disciplined capital deployment and operational excellence,” concluded Mr. Raifeld.

Financial Highlights

• Royalty revenue: Fourth quarter 2024 gross royalty revenue from Glaxo Group Limited (“GSK”) was $66.0 million and full year was $255.6 million, compared to $69.6 million for the fourth quarter of 2023 and $252.7 million for the full year 2023.
• Net Product Sales: Fourth quarter 2024 net product sales were $28.9 million, which included U.S. net product sales of $24.9 million, compared to $19.7 million for the fourth quarter of 2023, and ex-U.S. net product sales of $4.0 million. U.S. net product sales consisted of $15.9 million from GIAPREZA®, $3.1 million from XERAVA®, and $5.9 million from XACDURO®. Full year 2024 net product sales were $97.5 million, which included U.S. net product sales of $80.9 million, compared to $55.1 million for full year 2023, and ex-U.S. net product sales of $16.6 million. U.S. net product sales consisted of $53.4 million from GIAPREZA®, $12.8 million from XERAVA®, $14.7 million from XACDURO®.
• License revenue: Fourth quarter 2024 license revenue of $0.4 million included product development cost-sharing reimbursements from our partner. Full year 2024 license revenue of $19.5 million consisted of an $8.0 million milestone payment and $11.5 million cost-sharing reimbursements, compared to $11.0 million milestone payments in full year 2023.
• Equity and long-term investments: Fourth quarter and full year 2024 changes in fair values of equity and long-term investments of $19.6 million and $123.4 million, respectively, were primarily attributable to share price depreciation of Armata Pharmaceuticals and other equity investments.
• Net income: Fourth quarter 2024 net income of $20.3 million ($0.32 basic earnings per share) and full year 2024 net income of $23.4 million ($0.37 basic earnings per share) were driven primarily by higher revenue, offset by the negative impact of changes in the fair values of equity investments.
• Cash and cash equivalents: Totaled $305.0 million. Royalty and net product sales receivables totaled $86.4 million as of December 31, 2024.

Key Business and R&D Highlights

• ZEVTERA® (ceftibiprole): an advanced-generation cephalosporin antibiotic that is approved in the U.S. for three specific treatment indications. ZEVTERA® is the only FDA-approved methicillin-resistant Staphylococcus aureus (MRSA) cephalosporin antibiotic for treating adult patients with Staphylococcus aureus bloodstream infections (bacteremia) (SAB) and endocarditis. ZEVTERA® is indicated for the treatment of adult patients with SAB, including right-sided infective endocarditis, adult patients with acute bacterial skin and skin structure infections (ABSSSI) and for adult and pediatric patients (3 months to less than 18 years old) with community-acquired bacterial pneumonia (CABP).
  • In the fourth quarter of 2024, Innoviva licensed U.S. commercialization and distribution rights to ZEVTERA® from Basilea Pharmaceutica Ltd, Allschwil (SIX: BSLN).
  • The Company anticipates launching ZEVTERA® in the U.S. in mid-2025.

• 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 2024, the Company reported positive Phase 3 data for zoliflodacin, in which a single dose of oral zoliflodacin achieved a statistically non-inferior microbiological cure rate compared to the current global standard of care. Oral zoliflodacin was generally well tolerated and emergent adverse events were comparable between treatment arms. No deaths or other serious adverse events were reported.
  • The Company remains on track to submit the zoliflodacin NDA to the U.S. FDA in early 2025.

• 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 approved in China by the National Medical Products Administration for use in Chinese patients 18 years of age and older in May 2024.
  • In July, XACDURO® was named as the preferred agent for the treatment of Carbapenem-resistant Acinetobacter baumannaii infections, in combination with a carbapenem, in the updated 2024 IDSA treatment guidance.
  • In August, XACDURO® was nominated for the prestigious Prix Galien USA award for Best Biotechnology Product.

Update on Strategic Healthcare Assets

• Our portfolio of strategic assets under the Company’s various subsidiaries was valued at $501.5 million as of December 31, 2024. In the fourth quarter 2024, we continued to support product developments and invested $10.9 million in Gate Neurosciences, Inc., a leader in developing precision medicines targeting synaptic health.

About Innoviva

Innoviva is a diversified holding company with a core royalties portfolio, a leading critical care and infectious disease platform known as Innoviva Specialty Therapeutics (“IST”), and a portfolio of strategic investments in healthcare assets. Innoviva’s royalty portfolio includes respiratory assets partnered with Glaxo Group Limited (“GSK”). Innoviva is entitled to receive royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. Innoviva’s other innovative healthcare assets include infectious disease and critical care assets stemming from acquisitions of Entasis Therapeutics, including XACDURO® (sulbactam for injection; durlobactam for injection), co-packaged for intravenous use approved for the treatment of adults with hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia caused by susceptible strains of Acinetobacter baumannii-calcoaceticus complex and the investigational zoliflodacin currently being developed for the treatment of uncomplicated gonorrhea, and La Jolla Pharmaceutical Company, 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. On December 14, 2024, Innoviva entered into an exclusive distribution and license agreement with Basilea Pharmaceutica Ltd, Allschwil for the commercialization of ZEVTERA® (ceftobiprole), an advanced-generation cephalosporin antibiotic, in the U.S.

ANORO®, RELVAR® and BREO® are trademarks of the GSK group of companies. ZEVTERA® is a trademark of Basilea Pharmaceutica Ltd, Allschwil.

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®, XERAVA®, XACDURO® and ZEVTERA® 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, 2023 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. 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 Year Ended December 31, December 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue: Royalty revenue, net (1)

$

62,520

 

$

66,165

 

$

241,733

 

$

238,846

 

Net product sales

 

28,935

 

 

19,675

 

 

97,492

 

 

60,617

 

License Revenue

 

351

 

 

-

 

 

19,486

 

 

11,000

 

Total revenue

 

91,806

 

 

85,840

 

 

358,711

 

 

310,463

 

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

 

7,165

 

 

13,130

 

 

36,598

 

 

41,040

 

Cost of license revenue

 

-

 

 

-

 

 

-

 

 

1,600

 

Selling, general and administrative

 

31,326

 

 

26,319

 

 

115,690

 

 

98,232

 

Research and development

 

3,665

 

 

2,356

 

 

13,654

 

 

33,922

 

Amortization of acquired intangible assets

 

6,511

 

 

6,510

 

 

25,902

 

 

21,784

 

Changes in fair values of equity method investments, net

 

21,256

 

 

(9,506

)

 

64,253

 

 

(77,392

)

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

 

(1,666

)

 

(16,016

)

 

59,161

 

 

(11,129

)

Interest and dividend income

 

(5,768

)

 

(4,786

)

 

(19,141

)

 

(15,818

)

Interest expense

 

4,749

 

 

5,952

 

 

22,209

 

 

19,157

 

Other expense (income), net

 

(126

)

 

680

 

 

2,997

 

 

4,969

 

Total expenses

 

67,112

 

 

24,639

 

 

321,323

 

 

116,365

 

Income before income taxes

 

24,694

 

 

61,201

 

 

37,388

 

 

194,098

 

Income tax expense

 

4,362

 

 

(330

)

 

13,996

 

 

14,376

 

Net income

 

20,332

 

 

61,531

 

 

23,392

 

 

179,722

 

  Net income per share Basic net income per share attributable to Innoviva stockholders

$

0,32

 

$

0,97

 

$

0,37

 

$

2,75

 

Diluted net income per share attributable to Innoviva stockholders

$

0,26

 

$

0,76

 

$

0,36

 

$

2,20

 

  Shares used to compute basic net income per share

 

62,626

 

 

63,710

 

 

62,726

 

 

65,435

 

Shares used to compute diluted net income per share

 

84,200

 

 

84,995

 

 

74,187

 

 

86,876

 

(1) Total net revenue is comprised of the following (in thousands):   Three Months Ended Year Ended December 31, December 31,

 

2024

 

 

2023

 

 

2024

 

 

2023

 

(unaudited) (unaudited)   Royalties

$

65,975

 

$

69,620

 

$

255,556

 

$

252,669

 

Amortization of capitalized fees

 

(3,455

)

 

(3,455

)

 

(13,823

)

 

(13,823

)

Royalty revenue, net

$

62,520

 

$

66,165

 

$

241,733

 

$

238,846

 

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

2024

2023

Assets Cash and cash equivalents

$

304,964

$

193,513

Royalty and product sale receivables

 

86,366

 

84,075

Inventory, net

 

33,725

 

40,737

Prepaid expense and other current assets

 

21,719

 

25,894

Current portion of ISP Fund investments

 

107,532

 

-

Property and equipment, net

 

514

 

483

Equity and long-term investments

 

393,957

 

560,978

Capitalized fees

 

69,961

 

83,784

Right-of-use assets

 

2,453

 

2,536

Goodwill

 

17,905

 

17,905

Intangible assets

 

208,433

 

230,335

Deferred tax assets

 

12,054

 

-

Other assets

 

41,477

 

3,267

Total assets

$

1,301,060

$

1,243,507

    Liabilities and stockholders’ equity Other current liabilities

$

39,507

$

33,435

Accrued interest payable

 

3,422

 

3,422

Deferred revenues

 

1,126

 

1,277

Convertible senior notes, due 2025, net

 

192,028

 

191,295

Convertible senior notes, due 2028, net

 

256,316

 

254,939

Other long term liabilities

 

64,275

 

71,870

Deferred tax liabilities

 

-

 

563

Income tax payable - long term

 

53,227

 

11,751

Innoviva stockholders’ equity

 

691,159

 

674,955

Total liabilities and stockholders’ equity

$

1,301,060

$

1,243,507

INNOVIVA, INC. Cash Flows Summary (in thousands) (unaudited)   Year Ended December 31,

 

2024

 

 

2023

 

Net cash provided by operating activities

$

188,690

 

$

141,064

 

Net cash used in investing activities

 

(63,786

)

 

(66,761

)

Net cash used in financing activities

 

(13,453

)

 

(171,839

)

Net change

$

111,451

 

$

(97,536

)

Cash and cash equivalents at beginning of period

 

193,513

 

 

291,049

 

Cash and cash equivalents at end of period

$

304,964

 

$

193,513

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226009848/en/

Innoviva, Inc. David Patti Corporate Communications (908) 421-5971 david.patti@inva.com

Investors and Media: Argot Partners (212) 600-1902 innoviva@argotpartners.com