Innoviva Inc (INVA) Reports Q3 2023 Financial Results: Net Income Drops to $82.0 Million
Innoviva Inc (NASDAQ:INVA) reported net income of $82.0 million for Q3 2023, a significant decrease from $265.5 million in Q3 2022.
The company received GSK royalties of $57.0 million and net product revenues of $13.7 million in Q3 2023.
Innoviva launched XACDURO, a first-in-class therapy for hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia.
The company also announced positive topline Phase 3 zoliflodacin data for the treatment of gonorrhea in November 2023.
On November 1, 2023, Innoviva Inc (NASDAQ:INVA) released its Q3 2023 financial results. The company reported a net income of $82.0 million, or $1.26 basic per share, a significant decrease from the net income of $265.5 million, or $3.81 basic per share, for the same period in 2022. This decrease was primarily driven by a non-repeated gain on sales of its subsidiary, Theravance Respiratory Company, and its TRELEGY ELLIPTA royalty stream in July 2022.
Financial Highlights
Innoviva received GSK royalties of $57.0 million and net product revenues of $13.7 million in Q3 2023. The company's cash and cash equivalents totaled $180.0 million, and royalty, product sales, and milestone receivables totaled $67.8 million as of September 30, 2023.
The company's gross royalty revenue from Glaxo Group Limited (GSK) for Q3 2023 was $57.0 million, which included royalties of $45.6 million from global net sales of RELVAR/BREO ELLIPTA and royalties of $11.4 million from global net sales of ANORO ELLIPTA. This is compared to $65.6 million for Q3 2022, which included royalties of $55.7 million from global net sales of RELVAR/BREO ELLIPTA and $9.9 million from global net sales of ANORO ELLIPTA.
Net product sales and license revenue for Q3 2023 was $13.7 million, which included $8.0 million from GIAPREZA net sales, $5.1 million from XERAVA net sales, and $0.6 million from XACDURO net sales.
Company Progress and Future Prospects
Innoviva launched XACDURO, a first-in-class therapy for the treatment of hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia caused by susceptible strains of Acinetobacter. The company also announced positive topline Phase 3 zoliflodacin data for the treatment of gonorrhea in November 2023.
The third quarter of 2023 was marked by significant revenues stemming from our royalty portfolio and solid performance by our internal product portfolio, said Pavel Raifeld, Chief Executive Officer of Innoviva. A few weeks ago, we launched XACDURO in the United States and are encouraged by the market receptivity. Moreover, we announced positive topline data from the Phase 3 trial of our lead pipeline asset, zoliflodacin, and are excited about its potential to affect the treatment paradigm for gonorrhea patients, especially in the presence of antimicrobial resistance concerns. These milestones reinforce the strength and promise of our infectious disease and critical care business.
Despite the decrease in net income, Innoviva shows promise with the launch of new therapy and positive Phase 3 data. The company's commitment to cost discipline and operational progress among its investees, along with significant increases in the equity fair values of its investments, bodes well for its future prospects.
Explore the complete 8-K earnings release (here) from Innoviva Inc for further details.
This article first appeared on GuruFocus.
