Innoviva Announces Q2 2024 Financial Results and Recent Progress

Innoviva, Inc. (NASDAQ: INVA), a diversified holding company with a primary focus on a core royalties portfolio and a critical care and infectious disease platform known as Innoviva Specialty Therapeutics (IST), announced its financial results for the second quarter ending June 30, 2024. Alongside these results, the company highlighted notable achievements during the period.

According to Pavel Raifeld, Chief Executive Officer of Innoviva, the company experienced substantial growth in the second quarter. This was driven by the strong performance of its core GSK royalties portfolio and accelerating sales from its commercial products, which include GIAPREZA®, XACDURO®, and XERAVA®. Raifeld emphasized the company's commitment to enhancing shareholder value through strategic capital allocation and operational efficiency. He also highlighted the potential for significant value creation from Innoviva's strategic healthcare assets.

One of the key achievements during the quarter was the expansion of IST's global footprint and the enhancement of its recognition. In China, Innoviva's partner, Zai Lab, secured regulatory approval for XACDURO®, bringing the product closer to global availability. In the United States, XACDURO® was named the preferred agent for treating Carbapenem-resistant Acinetobacter baumannii infections by the 2024 Infectious Diseases Society of America (IDSA) treatment guidance. Additionally, XERAVA® was recommended by the 2024 Surgical Infection Society (SIS) guidelines for empiric therapy in managing complicated intra-abdominal infections.

Financially, Innoviva reported a gross royalty revenue of $67.2 million for the second quarter of 2024, up from $65.7 million in the same period in 2023. Net product sales reached $21.7 million, a significant increase from $15.7 million in the previous year's second quarter. This included $13.1 million from GIAPREZA®, $6.2 million from XERAVA®, and $2.4 million from XACDURO®. The company also reported second-quarter license revenue of $14.5 million, which included an $8 million milestone payment related to the regulatory approval of XACDURO® in China and $6.5 million in non-recurring cost-sharing reimbursements from a partner for product development.

Despite these positive developments, Innoviva faced some financial challenges. The company reported a net unfavorable change of $90.7 million in the fair values of equity and long-term investments, primarily due to a decline in the share price of Armata Pharmaceuticals. This resulted in a net loss of $34.7 million for the second quarter of 2024, compared to a net income of $1.3 million in the same period in 2023.

During the second quarter, Innoviva completed a $100 million share repurchase program, buying back 0.4 million shares for approximately $5.3 million. The company's cash and cash equivalents totaled $217.0 million, with royalty and net product sales receivables amounting to $94.0 million as of June 30, 2024.

Significant business and research and development highlights include the approval of XACDURO® in China for treating patients with hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia. XACDURO® was also named the preferred agent for treating Carbapenem-resistant Acinetobacter baumannii infections by IDSA in 2024. Moreover, XERAVA® was recommended for empiric therapy in treating complicated intra-abdominal infections by SIS in 2024.

Zoliflodacin, an oral antibiotic in development for treating uncomplicated gonorrhea, has successfully completed Phase 3 clinical trials, with results presented at ESCMID Global 2024. Innoviva plans to submit a New Drug Application (NDA) to the U.S. FDA in early 2025.

Innoviva's diversified portfolio includes royalty assets in partnership with Glaxo Group Limited (GSK), entitling the company to receive royalties from sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. This portfolio also includes critical care and infectious disease assets from acquisitions, such as XACDURO® and GIAPREZA®, and the investigational drug zoliflodacin.

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