Full Press Release Details
Innoviva Reports Third Quarter 2025 Financial
Results; Highlights Recent Company Progress
Generated $63.4 million in
revenue from durable royalties portfolio
IST achieved U.S. net
product sales of $29.9 million, representing 52% year-over-year growth
product portfolio with U.S. launch of ZEVTERA
Announced $125 million
share repurchase program
Calif. - November 5, 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 third quarter ended September 30, 2025, and highlighted select corporate progress and achievements.
"Innoviva delivered strong
third-quarter performance across each area of our business. The royalties portfolio reaffirmed its resilience with 5% growth compared
to last year, while IST delivered a third consecutive quarter of greater than 50% year-over-year U.S. sales growth. We are encouraged
by early market receptivity for ZEVTERA following its U.S. launch over the summer and look forward to zoliflodacin's
December 15 PDUFA date," said Pavel Raifeld, Chief Executive Officer of Innoviva.
portfolio, we saw meaningful value creation from our strategic investments, including Armata Pharmaceuticals, and continued to
thoughtfully deploy capital in areas of opportunity and market dislocation. The $125 million share repurchase program
underscores our confidence in Innoviva's prospects, supported by the strength of our balance sheet and cashflows, as we strive
to create value for our shareholders," concluded Mr. Raifeld.
Key Business and R&D Highlights
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. Innoviva also markets ZEVTERA (ceftobiprole), an advanced-generation cephalosporin antibiotic,
in the U.S. through an exclusive license from Basilea Pharmaceutica International Ltd, Allschwil. For more information about Innoviva,
go to www.inva.com. For information about Innoviva Specialty Therapeutics, go to www.innovivaspecialtytherapeutics.com.
and BREO are trademarks of the GSK group of companies. ZEVTERA is a trademark of Basilea Pharmaceutica Ltd, Allschwil.
Forward Looking Statements
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 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, 2024 and subsequently 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 per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Royalty revenue, net (1) | $ | 59,896 | $ | 57,056 | $ | 181,583 | $ | 179,213 | ||||||||
| Net product sales | 47,294 | 27,822 | 113,066 | 68,557 | ||||||||||||
| License and other revenue | 610 | 4,630 | 2,066 | 19,135 | ||||||||||||
| Total revenue | 107,800 | 89,508 | 296,715 | 266,905 | ||||||||||||
| Cost of products sold (inclusive of amortization of inventory fair value adjustments) | 25,643 | 9,990 | 45,075 | 29,433 | ||||||||||||
| Amortization of acquired intangible assets | 6,618 | 6,511 | 19,640 | 19,391 | ||||||||||||
| Gross profit | 75,539 | 73,007 | 232,000 | 218,081 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 27,291 | 26,219 | 81,194 | 84,364 | ||||||||||||
| Research and development | 13,670 | 3,551 | 26,049 | 9,989 | ||||||||||||
| Total operating expenses | 40,961 | 29,770 | 107,243 | 94,353 | ||||||||||||
| Income from operations | 34,578 | 43,237 | 124,757 | 123,728 | ||||||||||||
| Changes in fair values of equity method investments, net | 30,751 | (18,231 | ) | 30,284 | (42,997 | ) | ||||||||||
| Changes in fair values of equity and long-term investments, net | 31,510 | (16,936 | ) | (22,509 | ) | (60,827 | ) | |||||||||
| Interest and dividend income | 5,472 | 5,500 | 14,935 | 13,373 | ||||||||||||
| Interest expense | (4,015 | ) | (5,807 | ) | (13,389 | ) | (17,460 | ) | ||||||||
| Other expense, net | (479 | ) | (914 | ) | (2,252 | ) | (3,123 | ) | ||||||||
| Income (loss) before income taxes | 97,817 | 6,849 | 131,826 | 12,694 | ||||||||||||
| Income tax expense | (7,909 | ) | (5,636 | ) | (24,814 | ) | (9,634 | ) | ||||||||
| Net income (loss) | $ | 89,908 | $ | 1,213 | $ | 107,012 | $ | 3,060 | ||||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | 1.30 | $ | 0.02 | $ | 1.65 | $ | 0.05 | ||||||||
| Diluted | $ | 1.08 | $ | 0.02 | $ | 1.35 | $ | 0.05 | ||||||||
| Shares used to compute net income (loss) per share: | ||||||||||||||||
| Basic | 69,058 | 62,569 | 64,901 | 62,759 | ||||||||||||
| Diluted | 84,964 | 62,951 | 84,576 | 63,020 |
net revenue is comprised of the following (in thousands):
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Royalties | $ | 63,352 | $ | 60,512 | $ | 191,951 | $ | 189,581 | ||||||||
| Amortization of capitalized fees | (3,456 | ) | (3,456 | ) | (10,368 | ) | (10,368 | ) | ||||||||
| Royalty revenue, net | $ | 59,896 | $ | 57,056 | $ | 181,583 | $ | 179,213 |
Condensed Consolidated Balance Sheets
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 476,513 | $ | 304,964 | ||||
| Royalty and product sale receivables | 93,519 | 86,366 | ||||||
| Inventory, net | 38,363 | 33,725 | ||||||
| Prepaid expense and other current assets | 19,586 | 21,719 | ||||||
| Current portion of ISP Fund investments | 56,589 | 107,532 | ||||||
| Property and equipment, net | 1,529 | 514 | ||||||
| Equity method and equity and long-term investments | 426,371 | 393,957 | ||||||
| Capitalized fees | 59,593 | 69,961 | ||||||
| Right-of-use assets | 1,402 | 2,453 | ||||||
| Goodwill | 17,905 | 17,905 | ||||||
| Intangible assets | 188,793 | 208,433 | ||||||
| Deferred tax assets | 7,982 | 12,054 | ||||||
| Other assets | 40,961 | 41,477 | ||||||
| Total assets | $ | 1,429,106 | $ | 1,301,060 | ||||
| Liabilities and stockholders' equity | ||||||||
| Other current liabilities | $ | 34,669 | $ | 39,507 | ||||
| Accrued interest payable | 231 | 3,422 | ||||||
| Deferred revenues | 13,571 | 1,126 | ||||||
| Convertible senior notes, due 2025, net | - | 192,028 | ||||||
| Convertible senior notes, due 2028, net | 257,377 | 256,316 | ||||||
| Other long term liabilities | 57,431 | 64,275 | ||||||
| Income tax payable - long term | 55,876 | 53,227 | ||||||
| Innoviva stockholders' equity | 1,009,951 | 691,159 | ||||||
| Total liabilities and stockholders' equity | $ | 1,429,106 | $ | 1,301,060 |
| Nine Months Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Net cash provided by operating activities | $ | 142,417 | $ | 129,451 | ||||
| Net cash provided by (used in) investing activities | 16,860 | (48,308 | ) | |||||
| Net cash provided by (used in) financing activities | 12,272 | (14,026 | ) | |||||
| Net change | $ | 171,549 | $ | 67,117 | ||||
| Cash and cash equivalents at beginning of period | 304,964 | 193,513 | ||||||
| Cash and cash equivalents at end of period | $ | 476,513 | $ | 260,630 |
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