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INNOVIVA Innoviva Reports Second Quarter 2021 Financial Results July 28 , 2021 • Royalties increased by 44 % to $ 104.3 million in the second quarter of 2021 , compared to the same quarter in 2020 . Repurchased GSK's full 32 % equity stake in Innoviva for $ 392 million purchase price . • • Strategically invested an additional $ 20 million into Entasis Therapeutics Holdings Inc. ( NASDAQ : ETTX ) , a leader in anti - infectives development . BURLINGAME , Calif .-- ( BUSINESS WIRE ) -- Jul . 28 , 2021-- Innoviva , Inc. ( NASDAQ : INVA ) ( " Innoviva " and " the Company " ) today reported financial results for the second quarter ended June 30 , 2021 . • Gross royalty revenues of $ 104.3 million from Glaxo Group Limited ( " GSK " ) for the second quarter of 2021 included royalties of $ 65.9 million from global net sales of RELVARⓇ / BREO® ELLIPTAⓇ , royalties of $ 12.0 million from global net sales of ANOROⓇ ELLIPTAⓇ and royalties of $ 26.4 million from global net sales of TRELEGYⓇ ELLIPTAⓇ.1 • Increase in fair values of strategic equity and long - term investments of $ 45.3 million in the second quarter of 2021 was mainly due to higher net valuation , as of June 30 , 2021 . • Income before income taxes increased by 15 % to $ 136.2 million , compared to the same quarter in 2020 . • Net cash and cash equivalents , excluding $ 3.2 million cash balance attributable to a variable interest entity , totaled $ 40.1 million , and receivables from GSK totaled $ 104.3 million as of June 30 , 2021 . Pavel Raifeld , Chief Executive Officer of Innoviva , Inc. , stated , “ Our royalty revenues grew 44 % year over year , demonstrating continued strength and resilience in the face of the pandemic . " " RELVAR Ⓡ / BREOⓇ ELLIPTAⓇ global net sales increased meaningfully compared to the second quarter of 2020. U.S. net sales increased significantly , driven in part by a favorable adjustment . Non - U.S . sales increased by 13 % as the ICS / LABA class growth decline was more than offset by beneficial adherence trends among existing patients . ANORO® ELLIPTAⓇ global net sales increased by 7 % in the second quarter of 2021. U.S. net sales decreased by 3 % due to negative volume dynamics . Non - U.S . ANORO® ELLIPTAⓇ net sales increased by 25 % as the environment normalized . TRELEGYⓇ ELLIPTAⓇ global net sales increased by 69 % in the second quarter of 2021 , driven by strong volume growth and a favorable adjustment in the U.S. as well as strong launches in non - U.S . markets . " Mr. Raifeld concluded , " Over the past quarter , we continued to execute on our strategy of creating shareholder value through operational excellence and strategic investments , deploying in excess of $ 400 million . We are pleased with the superior performance across all key aspects of our business , and we believe GSK equity stake repurchase to be a strategically and economically attractive transaction that ushered a new chapter in our story and strongly positioned us for continued success . " Recent Highlights • GSK Net Sales : • Second quarter 2021 net sales of RELVARⓇ / BREO® ELLIPTAⓇ by GSK were $ 439.5 million , up 45 % from $ 303.8 million in the same quarter of 2020 , with $ 212.3 million in net sales from the U.S. market and $ 227.2 million from non - U.S . markets . • Second quarter 2021 net sales of ANOROⓇ ELLIPTAⓇ by GSK were $ 184.0 million , up 7 % from $ 172.3 million in the same quarter of 2020 , with $ 106.0 million net sales from the U.S. market and $ 78.0 million from non - U.S . markets . • Second quarter 2021 net sales of TRELEGYⓇ ELLIPTAⓇ by GSK were $ 405.9 million , up 69 % from $ 240.5 million in the same quarter of 2020 , with $ 285.5 million in net sales from the U.S. market and $ 120.4 million in net sales from non - U.S . markets . • Capital Allocation : o In May 2021 , the Company repurchased 32,005,260 shares of its common stock from GSK at $ 12.25 per share for a total amount ( including related transaction fees ) of $ 394.1 million . The repurchased shares represented all of GSK's equity stake in the Company , which was approximately 32 % of the Company's shares . • During the second quarter of 2021 , the Company's wholly owned subsidiary , Innoviva Strategic Opportunities LLC , invested $ 20.0 million to acquire 10 million shares of Entasis ' common stock and warrants to purchase up to an additional 10 million shares of common stock at $ 2.00 per share . With this additional investment , Innoviva collectively owned approximately 60.6 % of Entasis ' common stock as of June 30 , 2021 in addition to the warrants . 1 For 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 . About Innoviva