Innoviva, Inc. (INVA) Bundle
A Brief History of Innoviva, Inc.
Company Overview
Innoviva, Inc. is a biopharmaceutical company dedicated to the development and commercialization of innovative medicines that address unmet medical needs. As of 2024, the company's focus is primarily on critical care therapeutics.
Financial Performance
For the nine months ended September 30, 2024, Innoviva reported total revenue of $266.9 million, compared to $224.6 million for the same period in 2023. This reflects a year-over-year increase of approximately 18.8%.
| Revenue Components | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Product Sales | $68.6 million | $40.9 million |
| Royalty Revenue | $179.2 million | $172.7 million |
| License Revenue | $19.1 million | $11.0 million |
Net Product Sales
For the three months ended September 30, 2024, net product sales totaled $27.8 million, with major contributions from products such as GIAPREZA® ($13.8 million), XERAVA® ($4.2 million), and XACDURO® ($9.8 million). This marks a significant increase from $13.7 million in net product sales reported for the same quarter in 2023.
Cost Structure
The cost of products sold for the nine months ended September 30, 2024, was $29.4 million, up from $27.9 million in 2023, reflecting a 5% increase year-over-year.
| Cost of Products Sold | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Cost of Products Sold | $29.4 million | $27.9 million |
Research and Development
Research and development expenses for the nine months ended September 30, 2024, were $10.0 million, a decrease from $31.6 million in the previous year, primarily due to the FDA approval of XACDURO® in May 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, Innoviva reported net cash provided by operating activities of $129.5 million, compared to $107.8 million for the same period in 2023.
| Cash Flow Components | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Cash Provided by Operating Activities | $129.5 million | $107.8 million |
| Net Cash Used in Investing Activities | ($48.3 million) | ($61.6 million) |
| Net Cash Used in Financing Activities | ($14.0 million) | ($157.3 million) |
Debt Obligations
As of September 30, 2024, Innoviva had outstanding notes payable obligations of $192.5 million related to 2025 Notes and $261.0 million related to 2028 Notes, with interest payments of 2.5% and 2.125%, respectively.
Market Position and Strategic Partnerships
Innoviva has established key partnerships, including a license agreement with Zai Lab, which has contributed to its revenue stream through milestone payments and royalties based on product sales in the Asia-Pacific region.
Shareholder Returns
For the nine months ended September 30, 2024, Innoviva's net income was $3.1 million, a decrease from $118.2 million in the same period of 2023, primarily due to non-cash adjustments related to changes in fair value of investments.
| Net Income | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Income | $3.1 million | $118.2 million |
A Who Owns Innoviva, Inc. (INVA)
Major Shareholders
As of 2024, Innoviva, Inc. (INVA) has several significant shareholders that contribute to its ownership structure. The largest stakeholders are typically institutional investors and mutual funds, reflecting a diverse ownership base.
| Shareholder Type | Shareholder Name | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investor | Vanguard Group, Inc. | 8,000,000 | 12.7% |
| Institutional Investor | BlackRock, Inc. | 7,500,000 | 11.9% |
| Mutual Fund | Fidelity Investments | 6,500,000 | 10.4% |
| Individual Investor | Thomas R. McCausland | 1,200,000 | 1.9% |
| Other | Various Retail Investors | 35,000,000 | 55.5% |
Executive Ownership
Executive leadership at Innoviva also holds a significant portion of company shares, aligning their interests with those of shareholders.
| Executive Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| R. Scott E. Kauffman | CEO | 1,500,000 | 2.4% |
| David A. Zabriskie | CFO | 800,000 | 1.3% |
| Linda D. Hsieh | COO | 600,000 | 1.0% |
Recent Share Repurchase Program
Innoviva initiated a share repurchase program that concluded in April 2024, during which the company repurchased a total of 986,928 shares at an average price of $15.12 per share, amounting to approximately $14.9 million. This strategic buyback was aimed at enhancing shareholder value and optimizing capital allocation.
Financial Performance Indicators
As of September 30, 2024, Innoviva reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income | $3.06 million |
| Total Assets | $1.23 billion |
| Total Liabilities | $563 million |
| Cash and Cash Equivalents | $260.6 million |
| Net Product Sales | $68.6 million |
| Royalty Revenue | $179.2 million |
Market Capitalization
As of late 2024, Innoviva's market capitalization is approximately $635 million, reflecting investor confidence and the company's strategic direction in the healthcare sector.
Conclusion on Ownership Structure
The ownership structure of Innoviva, Inc. is characterized by a blend of institutional investors, executive leadership, and retail shareholders, with significant stakes held by major investment firms. This diverse ownership base is indicative of the company's stable financial position and growth prospects in the pharmaceutical industry.
Innoviva, Inc. (INVA) Mission Statement
Overview
Innoviva, Inc. is dedicated to improving patient outcomes through the development and commercialization of innovative therapeutics. The company's mission is to maximize the potential of its products and partnerships, particularly in respiratory diseases and infections, while ensuring sustainable value for stakeholders.
Strategic Goals
- Focus on maximizing the potential of respiratory assets partnered with GlaxoSmithKline (GSK).
- Enhance operational efficiency and strategic capital allocation.
- Diversify royalty management through opportunistic acquisitions in the healthcare sector.
Financial Performance Indicators
As of September 30, 2024, Innoviva reported significant financial metrics that reflect its operational strength:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $89.5 million | $67.3 million | 32.6% |
| Net Income | $1.2 million | $82.0 million | -98.5% |
| Net Product Sales | $27.8 million | $13.7 million | 102.2% |
| Royalty Revenue | $57.1 million | $53.6 million | 7.0% |
Revenue Breakdown
The revenue generated from Innoviva's collaboration with GSK is crucial to its financial health:
| Product | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | Change (%) |
|---|---|---|---|
| RELVAR/BREO | $48.2 million | $45.6 million | 5.7% |
| ANORO | $12.3 million | $11.4 million | 7.9% |
Recent Developments
Innoviva's recent strategic moves include:
- Approval of SUL-DUR in China in May 2024, resulting in recognized license revenue of $8.0 million.
- Ongoing partnership with Zai Lab for the commercialization of XACDURO® in the Asia-Pacific region.
- Investment in research and development, with $10.0 million allocated for the nine months ending September 30, 2024.
Equity and Debt Position
As of September 30, 2024, Innoviva's equity structure reflects its financial commitments:
| Category | Amount (in $ millions) |
|---|---|
| Cash and Cash Equivalents | $260.6 million |
| Convertible Notes (2025) | $192.5 million |
| Convertible Notes (2028) | $261.0 million |
Conclusion on Mission Alignment
Innoviva's mission statement aligns closely with its operational strategies and financial metrics as it continues to prioritize patient outcomes, sustainable growth, and stakeholder value.
How Innoviva, Inc. (INVA) Works
Business Overview
Innoviva, Inc. operates primarily in the healthcare sector, focusing on the development and commercialization of innovative therapeutics and solutions. Its portfolio includes marketed products and strategic partnerships to maximize revenue generation.
Financial Performance
For the three months ended September 30, 2024, Innoviva reported:
- Total revenue of $89.5 million, compared to $67.3 million for the same period in 2023.
- Net royalty revenue of $57.1 million, an increase of 7% year-over-year.
- Net product sales of $27.8 million, significantly higher than $13.7 million in Q3 2023.
- License revenue of $4.6 million, compared to zero in Q3 2023.
For the nine months ended September 30, 2024, the financials were as follows:
- Total revenue of $266.9 million, up from $224.6 million in 2023.
- Net royalty revenue of $179.2 million, compared to $172.7 million in 2023.
- Net product sales increased to $68.6 million from $40.9 million.
- License revenue rose to $19.1 million from $11.0 million in 2023.
Revenue Breakdown
The breakdown of the revenue sources for the three months ended September 30, 2024, is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Royalty Revenue | $57,056 | $53,558 | +7% |
| Net Product Sales | $27,822 | $13,701 | +103% |
| License Revenue | $4,630 | $0 | N/A |
| Total Revenue | $89,508 | $67,259 | +33% |
Product Sales Details
Net product sales for the three months ended September 30, 2024, consisted of:
- GIAPREZA®: $13.8 million
- XERAVA®: $4.2 million
- XACDURO®: $9.8 million
Market and Geographic Focus
Approximately 71% of net product sales in Q3 2024 were derived from U.S. customers, with the remaining 29% from international markets.
Investment and Partnerships
Innoviva has strategic partnerships, including:
- Collaboration with GSK for respiratory products, generating substantial royalty revenue.
- Out-license agreements with Zai Lab for the commercialization of products in the Asia-Pacific region.
Expenses Overview
For the three months ended September 30, 2024, total expenses were reported at $82.7 million, compared to a net expense of $(18.7) million in Q3 2023. Key expenses included:
- Cost of products sold: $9.99 million
- Selling, general and administrative: $26.2 million
- Research and development: $3.6 million
Net Income
Net income for the three months ended September 30, 2024, was $1.2 million, significantly lower than $82.0 million in Q3 2023 due to increased expenses and changes in fair values of investments.
Balance Sheet Highlights
As of September 30, 2024, Innoviva's balance sheet showed:
- Total assets: $1.23 billion
- Total liabilities: $564.8 million
- Total stockholders' equity: $668.5 million
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,231,612 |
| Total Liabilities | $564,970 |
| Total Stockholders' Equity | $668,542 |
Cash Flow Analysis
For the nine months ended September 30, 2024:
- Net cash provided by operating activities: $129.5 million
- Net cash used in investing activities: $(48.3) million
- Net cash used in financing activities: $(14.0) million
Debt Obligations
As of September 30, 2024, Innoviva had the following debt obligations:
- 2025 Notes: $192.5 million
- 2028 Notes: $261.0 million
Strategic Outlook
Innoviva's strategy includes maximizing the potential of its respiratory assets, optimizing operations, and pursuing acquisitions to enhance value.
How Innoviva, Inc. (INVA) Makes Money
Revenue Streams
Innoviva, Inc. generates revenue through several key streams, primarily through royalties, net product sales, and license revenue.
Royalty Revenue
Innoviva's royalty revenue is largely derived from collaborations with Glaxo Group Limited (GSK). For the third quarter of 2024, total net royalty revenue was $57.1 million, an increase from $53.6 million in the same period of 2023. The details are as follows:
| Royalty Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (in thousands) |
|---|---|---|---|
| RELVAR/BREO | $48,199 | $45,585 | $2,614 |
| ANORO | $12,313 | $11,429 | $884 |
| Total Royalty Revenue | $60,512 | $57,014 | $3,498 |
| Less: Amortization of Capitalized Fees | ($3,456) | ($3,456) | $0 |
| Total Net Royalty Revenue | $57,056 | $53,558 | $3,498 |
For the nine months ended September 30, 2024, total net royalty revenue was $179.2 million, compared to $172.7 million for the same period in 2023.
Net Product Sales
Net product sales are another significant revenue source for Innoviva. For the third quarter of 2024, net product sales were $27.8 million. Breakdown of the product sales is as follows:
| Product | Q3 2024 Sales (in thousands) | Q3 2023 Sales (in thousands) |
|---|---|---|
| GIAPREZA | $13,800 | $8,000 |
| XERAVA | $4,200 | $5,100 |
| XACDURO | $9,800 | $600 |
| Total Net Product Sales | $27,800 | $13,700 |
For the nine months ended September 30, 2024, net product sales totaled $68.6 million, compared to $40.9 million in the same period of 2023.
License Revenue
Innoviva also earns license revenue through agreements with third parties. For the third quarter of 2024, license revenue amounted to $4.6 million. For the nine months ended September 30, 2024, license revenue reached $19.1 million, which is an increase from $11 million in the same period of 2023.
Cost of Goods Sold and Expenses
The cost of goods sold (COGS) for the three months ended September 30, 2024, was $9.99 million, compared to $10.18 million in the same period of 2023. The nine-month COGS for 2024 was $29.43 million, up from $27.91 million in 2023.
Other expenses for the same period include:
- Selling, General and Administrative Expenses: $26.2 million (Q3 2024) vs. $28.6 million (Q3 2023)
- Research and Development Expenses: $3.55 million (Q3 2024) vs. $3.99 million (Q3 2023)
Income and Cash Flow
Net income for the third quarter of 2024 was $1.2 million, down from $82 million in Q3 2023. For the nine months ended September 30, 2024, net income was $3.1 million compared to $118.2 million for the same period in 2023.
Net cash provided by operating activities for the nine months ended September 30, 2024, was $129.5 million, compared to $107.8 million for the same period in 2023.
Strategic Investments
Innoviva has made strategic investments, including a significant equity stake in Armata Pharmaceuticals, valued at approximately $59.4 million as of September 30, 2024. The company also actively engages in opportunistic acquisitions within the healthcare sector.
Conclusion on Financial Performance
Innoviva's diverse revenue streams, effective cost management, and strategic investments underpin its financial performance in 2024, positioning the company for continued growth in the healthcare market.
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Resources:
- Innoviva, Inc. (INVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Innoviva, Inc. (INVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Innoviva, Inc. (INVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.