Innoviva(US:INVA)2025-02-26 21:48Financial Performance - Total revenue for the year ended December 31, 2024, was $358.7 million, an increase of 15.5% compared to $310.5 million in 2023[513]. - Royalty revenue for 2024 was $241.7 million, slightly up from $238.8 million in 2023, while net product sales increased significantly to $97.5 million from $60.6 million[513]. - The company reported a net income of $23.4 million for 2024, a decrease from $179.7 million in 2023, resulting in a basic net income per share of $0.37[513][515]. - Net income for the year ended December 31, 2024, was $23,392,000, compared to $179,722,000 in 2023, indicating a significant decline[518]. - Basic net income per share for 2024 was $0.37, a decrease from $2.75 in 2023, indicating a significant decline in profitability[595]. - Net income attributable to Innoviva stockholders for 2024 was $23.392 million, a decrease from $179.722 million in 2023 and $213.921 million in 2022[595]. Assets and Liabilities - Total current assets increased to $554.3 million in 2024 from $344.2 million in 2023, driven by higher cash and cash equivalents of $305.0 million[511]. - Total liabilities decreased to $556.7 million in 2024 from $556.1 million in 2023, with long-term debt significantly reduced to $256.3 million from $446.2 million[511]. - As of December 31, 2024, total stockholders' equity is $691,159,000, a decrease from $674,955,000 in 2023[518]. - The total paid-in capital as of December 31, 2024, is $692,329,000, a decrease from $1,093,340,000 in 2023[518]. - The accumulated deficit as of December 31, 2024, is $(1,797,000), an improvement from $(25,189,000) in 2023[518]. Expenses - Research and development expenses for 2024 were $13.7 million, down from $33.9 million in 2023, indicating a strategic shift in investment[513]. - Selling, general and administrative expenses rose to $115.7 million in 2024 from $98.2 million in 2023, reflecting increased operational costs[513]. - Cash paid for income taxes in 2024 was $11,793 million, compared to $53,855 million in 2022[522]. Cash Flow - Net cash provided by operating activities increased to $188,690 million in 2024, compared to $141,064 million in 2023 and $201,726 million in 2022[521]. - Cash and cash equivalents at the end of the period increased to $304,964 million in 2024, up from $193,513 million in 2023[521]. - The company reported a net cash used in investing activities of $63,786 million in 2024, slightly down from $66,761 million in 2023[521]. Product Development and Sales - The company commenced commercial sales of its new product XACDURO® in Q3 2023, approved for treating hospital-acquired and ventilator-associated pneumonias[526]. - The company plans to submit a New Drug Application for zoliflodacin in early 2025, targeting uncomplicated gonorrhea treatment[526]. - Total net product sales for 2024 reached $97.492 million, representing a significant increase of 60.8% from $60.617 million in 2023 and a substantial increase from $19.694 million in 2022[604]. - The company recognized a noncontrolling interest of $38,471,000 upon initial consolidation of Entasis[518]. Royalty Revenue - The company has a royalty revenue structure with GSK, receiving 15% on the first $3.0 billion of annual global net sales of RELVAR®/BREO® ELLIPTA®[525]. - The total royalty revenue for 2024 was $241.733 million, compared to $238.846 million in 2023, reflecting a stable revenue stream despite the loss of TRELEGY royalties[600]. - Royalties from RELVAR/BREO for 2024 were $207.925 million, slightly down from $208.042 million in 2023, while ANORO royalties increased to $47.631 million from $44.627 million[600]. Investments and Acquisitions - The acquisition of La Jolla Pharmaceutical Company was completed on August 22, 2022, expanding the company's portfolio[526]. - The total assets acquired from the acquisition of La Jolla amounted to $287.951 million, with total liabilities assumed of $81.392 million, resulting in net assets acquired of $206.559 million[670]. - The company extended a term loan to Armata in July 2023 for $25.0 million at an interest rate of 14% per annum, maturing on January 10, 2025[685]. - The company recognized a non-controlling interest of $38.5 million as of February 17, 2022, with a net loss attributable to non-controlling interest of $13.6 million included in consolidated net income for the year ended December 31, 2022[663]. Goodwill and Fair Value - The company recognizes goodwill as the excess of the purchase consideration over the fair value of acquired net assets in a business combination[543]. - The goodwill from the acquisition of La Jolla is primarily attributable to its assembled workforce and is not expected to be deductible for tax purposes[670]. - The fair value of investments held by ISP Fund LP decreased from $311.8 million in 2023 to $255.7 million in 2024, indicating a significant reduction in asset value[650]. Stock and Compensation - The company repurchased common stock totaling $14,925,000 during the year, including accrued excise tax[518]. - Stock-based compensation for the year 2024 amounted to $6,374,000, up from $5,837,000 in 2023[518]. - The weighted-average shares used to compute diluted net income per share for 2024 were 74.187 million, down from 86.876 million in 2023[595].