Innoviva Reports Third Quarter 2021 Financial Results Royalties increased by 10% to $101.3 million in the third quarter of 2021, compared to the same quarter in 2020.

Third Quarter 2021 Financial Results

October 27, 2021 - Innoviva, Inc.

(NASDAQ: INVA) ("Innoviva" and "the Company") today reported financial results for the third quarter ended September 30,

Pavel Raifeld, Chief Executive Officer

of Innoviva, Inc., stated, "Our royalty revenues grew 10% year over year, displaying strong positive momentum in a volatile

ELLIPTA global net sales decreased 15% compared to the third quarter of 2020 mainly because the significant favorable

prior period adjustment in the U.S. in 2020 was not repeated. Non-U.S. sales increased 4% with strong growth in Japan and the EU despite

generic competition and class-wide pressures. ANORO ELLIPTA global net sales decreased by 2% in the third

quarter of 2021 due to pandemic-driven LABA/LAMA class weakness. U.S. net sales decreased with slower new patient growth. Non-U.S.

ANORO ELLIPTA net sales increased 8% because of meaningful growth in select markets despite class challenges.

TRELEGY ELLIPTA global net sales increased 77% in the third quarter of 2021, driven by excellent

U.S. growth for the triple therapy class and favorable prior period adjustment. Non-US TRELEGY ELLIPTA sales

also grew as Trelegy continues to launch in new markets."

Mr. Raifeld concluded, "We are

pleased with the growth and resilience in our core royalty business. In addition, we are excited by strong progress across our asset

portfolio, including recent pivotal clinical data read out at Entasis Therapeutics. Our financial performance remains robust, with basic

net income per share exceeding $1 for the quarter, a nearly four-fold increase over the third quarter of 2020, supported by the recently

completed equity repurchase, as we continue to focus on shareholder value creation through thoughtful capital deployment and operational

TRELEGY ELLIPTA , the amount represents 100% of royalty payments made by GSK to Theravance Respiratory

Company, LLC ("TRC"). Innoviva owns 15% of the economic interest in TRC.

Innoviva, Inc. (referred

to as "Innoviva", the "Company", or "we" and other similar pronouns), is a company with a portfolio

of royalties that include respiratory assets partnered with Glaxo Group Limited ("GSK"), including RELVAR /BREO

ELLIPTA (fluticasone furoate/ vilanterol, "FF/VI"), ANORO ELLIPTA (umeclidinium

bromide/ vilanterol, "UMEC/VI") and TRELEGY ELLIPTA (the combination FF/UMEC/VI). Under the

Long-Acting Beta2 Agonist ("LABA") Collaboration Agreement, Innoviva is entitled to receive royalties from GSK on sales

of RELVAR /BREO ELLIPTA and ANORO ELLIPTA . Innoviva is

also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to Theravance

Respiratory Company, LLC ("TRC"), relating to TRELEGY ELLIPTA and any other product or combination

of products that may be discovered and developed in the future under the LABA Collaboration Agreement and the Strategic Alliance Agreement

with GSK (referred to herein as the "GSK Agreements"), which have been assigned to TRC other than RELVAR /BREO

ELLIPTA and ANORO ELLIPTA .

BREO , TRELEGY and ELLIPTA are trademarks of the GlaxoSmithKline group of companies.

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 and TRELEGY

ELLIPTA 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 beyond the existing respiratory portfolio);

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"). 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, 2020 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.

Condensed Consolidated

Statements of Income

(in thousands, except

(1) Total net revenue from a related party

is comprised of the following (in thousands):

Condensed Consolidated

(1) The selected consolidated balance sheet

amounts at December 31, 2020 are derived from audited financial statements.

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