Innoviva, Inc 10-Q for FY2020 Q1

Innoviva, Inc. (INVA)

10-Q 2020-04-29 For: 2020-03-31

Added on April 12, 2026

About this 10-Q

Innoviva, Inc filed this 10-Q on April 29, 2020, covering the quarter ended March 31, 2020 (FY2020 Q1).

Headline figures

Quarter ended March 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $78.68M; up 42.6% from $55.18M a year earlier
Net income: $78.95M; up 97.3% from net income of $40.02M a year earlier
Diluted EPS: $0.59; up 90.3% from $0.31 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Delaware		94-3265960
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		INVA		The NASDAQ Global Select Market

Large accelerated filer ⌧		Accelerated filer ◻

Non-accelerated filer ◻		Smaller reporting company ☐

		Emerging growth company ☐

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets as of March 31, 2020 (Unaudited) and December 31, 2019	3
Unaudited Consolidated Statements of Income for the Three Months Ended March 31, 2020 and 2019	4
Unaudited Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2020 and 2019	5
Unaudited Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2020 and 2019	6
Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2020 and 2019	7
Notes to Unaudited Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	15

Item 3. Quantitative and Qualitative Disclosures About Market Risk	20

Item 4. Controls and Procedures	20

PART II. OTHER INFORMATION

Item 1. Legal Proceedings	21

Item 1A. Risk Factors	21

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	22

Item 3. Defaults Upon Senior Securities	22

Item 4. Mine Safety Disclosure	22

Item 5. Other Information	22

Item 6. Exhibits	22

Signatures	22

Exhibits


	March 31,		December 31,
	2020		2019
	(unaudited)		*
Assets
Current assets:
Cash and cash equivalents	$	351,981	$	278,096
Short-term marketable securities		31,970		72,749
Related party receivables from collaborative arrangements		82,134		79,427
Prepaid expenses and other current assets		822		962
Total current assets		466,907		431,234
Property and equipment, net		42		33
Equity investments		46,915		—
Capitalized fees paid to a related party, net		135,620		139,076
Deferred tax assets, net		138,239		154,171
Other assets		288		312
Total assets	$	788,011	$	724,826

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	122	$	10
Accrued personnel-related expenses		274		647
Accrued interest payable		1,668		4,152
Other accrued liabilities		734		562
Total current liabilities		2,798		5,371
Long-term debt, net of discount and issuance costs		379,152		377,120
Other long-term liabilities		192		219
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock: $0.01 par value, 230 shares authorized, no shares issued and outstanding		—		—
Common stock: $0.01 par value, 200,000 shares authorized, 101,320 and 101,288 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively		1,013		1,013
Additional paid-in capital		1,259,464		1,258,859
Accumulated other comprehensive income		33		27
Accumulated deficit		(880,967)		(946,404)
Total Innoviva stockholders’ equity		379,543		313,495
Noncontrolling interest		26,326		28,621
Total stockholders’ equity		405,869		342,116
Total liabilities and stockholders’ equity	$	788,011	$	724,826


	Three Months Ended March 31,
	2020		2019

Royalty revenue from a related party, net of amortization of capitalized fees paid to a related party of $3,456 in the three months ended March 31, 2020 and 2019	$	78,678	$	55,183

Operating expenses:
General and administrative		2,563		3,015
Total operating expenses		2,563		3,015

Income from operations		76,115		52,168

Other income, net		68		1
Interest income		1,302		975
Interest expense		(4,516)		(4,617)
Changes in fair values of equity investments		21,915		—
Income before income taxes		94,884		48,527
Income tax expense, net		15,932		8,508
Net income		78,952		40,019
Net income attributable to noncontrolling interest		13,515		6,229
Net income attributable to Innoviva stockholders	$	65,437	$	33,790

Basic net income per share attributable to Innoviva stockholders	$	0.65	$	0.33
Diluted net income per share attributable to Innoviva stockholders	$	0.59	$	0.31

Shares used to compute Innoviva basic and diluted net income per share:
Shares used to compute basic net income per share		101,235		101,059
Shares used to compute diluted net income per share		113,509		113,376


	Three months ended March 31, 2020
						Accumulated Other
	Common Stock			Additional Paid-In		Comprehensive		Accumulated		Noncontrolling		Total Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Interest		Equity
Balance as of December 31, 2019	101,288	$	1,013	$	1,258,859	$	27	$	(946,404)	$	28,621	$	342,116
Distributions to noncontrolling interest	—		—		—		—		—		(15,810)		(15,810)
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding	32		—		170		—		—		—		170
Stock-based compensation	—		—		435		—		—		—		435
Net income	—		—		—		—		65,437		13,515		78,952
Other comprehensive income	—		—		—		6		—		—		6
Balance as of March 31, 2020	101,320	$	1,013	$	1,259,464	$	33	$	(880,967)	$	26,326	$	405,869


	Three months ended March 31, 2019
						Accumulated Other
	Common Stock			Additional Paid-In		Comprehensive		Accumulated		Noncontrolling		Total Stockholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Interest		Equity
Balance as of December 31, 2018	101,098	$	1,011	$	1,256,267	$	(3)	$	(1,103,692)	$	5,469	$	159,052
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding	85		1		253		—		—		—		254
Stock-based compensation	—		—		605		—		—		—		605
Net income	—		—		—		—		33,790		6,229		40,019
Other comprehensive income	—		—		—		13		—		—		13
Balance as of March 31, 2019	101,183	$	1,012	$	1,257,125	$	10	$	(1,069,902)	$	11,698	$	199,943


	Three Months Ended March 31,
(In thousands except per share data)	2020		2019
Numerator:
Net income attributable to Innoviva stockholders, basic	$	65,437	$	33,790
Add: interest expense on 2023 Notes		1,180		1,415
Net income attributable to Innoviva stockholders, diluted	$	66,617	$	35,205

Denominator:
Weighted-average shares used to compute basic net income per share attributable to Innoviva stockholders		101,235		101,059
Dilutive effect of 2023 Notes		12,189		12,189
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan		85		128
Weighted-average shares used to compute diluted net income per share attributable to Innoviva stockholders		113,509		113,376

Net income per share attributable to Innoviva stockholders
Basic	$	0.65	$	0.33
Diluted	$	0.59	$	0.31


	Three Months Ended March 31,
(In thousands)	2020	2019
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan	1,094	1,053


	March 31, 2020
			Gross		Gross
			Unrealized		Unrealized		Estimated
(In thousands)	Amortized Cost		Gains		Losses		Fair Value
U.S. government securities	$	13,958	$	41	$	—	$	13,999
U.S. commercial paper		48,964		—		—		48,964
Money market funds		285,309		—		—		285,309
Total	$	348,231	$	41	$	—	$	348,272


	December 31, 2019
			Gross		Gross
			Unrealized		Unrealized		Estimated
(In thousands)	Amortized Cost		Gains		Losses		Fair Value
U.S. government securities	$	53,799	$	35	$	—	$	53,834
U.S. commercial paper		18,915		—		—		18,915
Money market funds		233,992		—		—		233,992
Total	$	306,706	$	35	$	—	$	306,741


	Estimated Fair Value Measurements as of March 31, 2020 Using:
	Quoted Price in
	Active Markets		Significant Other		Significant
	for Identical		Observable		Unobservable
Types of Instruments	Assets		Inputs		Inputs
(In thousands)	Level 1		Level 2		Level 3		Total
Assets
U.S. government securities	$	—	$	13,999	$	—	$	13,999
U.S. commercial paper		—		48,964		—		48,964
Money market funds		285,309		—		—		285,309
Equity investment - Armata Common Stock		27,003		—		—		27,003
Equity investment - Armata Warrants		—		19,912		—		19,912
Total assets measured at estimated fair value	$	312,312	$	82,875	$	—	$	395,187
Debt
2023 Notes	$	—	$	216,886	$	—	$	216,886
2025 Notes		—		191,538		—		191,538
Total fair value of debt	$	—	$	408,424	$	—	$	408,424


(In thousands)
Years ending December 31:
2020 to 2022	$	—
2023		240,984
2024		—
Thereafter		192,500
Total	$	433,484


(In thousands)
Years ending December 31:
Remainder of 2020	$	90
2021		123
2022		109
Thereafter		—
Total	$	322


	Three Months Ended March 31,
(In thousands)	2020		2019		Change
Net cash provided by operating activities	$	73,481	$	76,655	$	(3,174)
Net cash provided by (used in) investing activities		16,044		(74,167)		90,211
Net cash provided by (used in) financing activities		(15,640)		246		(15,886)


Exhibit Number	Description	Form	Exhibit	Incorporated by Reference Filing Date/Period End Date

31.1	Certification of Principal Executive Officer pursuant to Rules 13a-14 pursuant to the Securities Exchange Act of 1934

31.2	Certification of Principal Financial Officer pursuant to Rules 13a-14 pursuant to the Securities Exchange Act of 1934

32	Certifications Pursuant to 18 U.S.C. Section 1350

101	Interactive Data File (Quarterly Report on Form 10-Q, for the quarterly period ended March 31, 2020) formatted in iXBRL (Inline eXtensible Business Reporting Language).

104	Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


	Innoviva, Inc.

Date: April 29, 2020	/s/ Geoffrey Hulme
	Geoffrey Hulme
	Interim Principal Executive Officer
	(Principal Executive Officer)

Date: April 29, 2020	/s/ Marianne Zhen
	Marianne Zhen
	Chief Accounting Officer
	(Principal Financial Officer)