Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 19, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | INNOVIVA, INC. | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-30319 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3265960 | |
Entity Address, Address Line One | 1350 Old Bayshore Highway Suite 400 | |
Entity Address, City or Town | Burlingame | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94010 | |
City Area Code | 650 | |
Local Phone Number | 238-9600 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | INVA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 101,391,634 | |
Entity Central Index Key | 0001080014 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 479,193 | $ 278,096 | |
Short-term marketable securities | 0 | 72,749 | |
Related party receivables from collaborative arrangements | 92,150 | 79,427 | |
Prepaid expenses and other current assets | 698 | 962 | |
Total current assets | 572,041 | 431,234 | |
Property and equipment, net | 33 | 33 | |
Equity investments | 111,745 | 0 | |
Capitalized fees paid to a related party, net | 128,708 | 139,076 | |
Deferred tax assets, net | 109,490 | 154,171 | |
Other assets | 239 | 312 | |
Total assets | 922,256 | 724,826 | |
Current liabilities: | |||
Accounts payable | 623 | 10 | |
Accrued personnel-related expenses | 384 | 647 | |
Accrued interest payable | 1,668 | 4,152 | |
Other accrued liabilities | 1,223 | 562 | |
Total current liabilities | 3,898 | 5,371 | |
Long-term debt, net of discount and issuance costs | 383,350 | 377,120 | |
Other long-term liabilities | 136 | 219 | |
Commitments and contingencies (Note 8) | |||
Stockholders' equity: | |||
Preferred stock: $0.01 par value, 230 shares authorized, no shares issued and outstanding | 0 | 0 | |
Common stock: $0.01 par value, 200,000 shares authorized, 101,392 and 101,288 issued and outstanding as of September 30, 2020 and December 31, 2019, respectively | 1,014 | 1,013 | |
Additional paid-in capital | 1,260,447 | 1,258,859 | |
Accumulated other comprehensive income | 0 | 27 | |
Accumulated deficit | (775,905) | (946,404) | |
Total Innoviva stockholders' equity | 485,556 | 313,495 | |
Noncontrolling interest | 49,316 | 28,621 | |
Total stockholders' equity | 534,872 | 342,116 | |
Total liabilities and stockholders' equity | $ 922,256 | $ 724,826 | |
[1] | Consolidated balance sheet as of December 31, 2019 has been derived from audited consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 230 | 230 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 101,391 | 101,288 |
Common stock, shares outstanding | 101,391 | 101,288 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total net revenue | $ 88,694 | $ 65,755 | $ 246,318 | $ 185,045 |
Operating expenses: | ||||
Research and development | 1,010 | 0 | 1,569 | 0 |
General and administrative | 3,254 | 4,962 | 8,413 | 12,324 |
Total operating expenses | 4,264 | 4,962 | 9,982 | 12,324 |
Income from operations | 84,430 | 60,793 | 236,336 | 172,721 |
Other income (expense), net | (13) | (115) | 85 | (122) |
Interest income | 41 | 1,624 | 1,501 | 4,002 |
Interest expense | (4,603) | (4,693) | (13,680) | (13,971) |
Changes in fair values of equity investments | (29,368) | 0 | 39,245 | 0 |
Income before income taxes | 50,487 | 57,609 | 263,487 | 162,630 |
Income tax expense, net | 8,866 | 10,558 | 44,689 | 29,499 |
Net income | 41,621 | 47,051 | 218,798 | 133,131 |
Net income attributable to noncontrolling interest | 13,403 | 7,242 | 48,299 | 21,792 |
Net income attributable to Innoviva stockholders | $ 28,218 | $ 39,809 | $ 170,499 | $ 111,339 |
Basic net income per share attributable to Innoviva stockholders | $ 0.28 | $ 0.39 | $ 1.68 | $ 1.10 |
Diluted net income per share attributable to Innoviva stockholders | $ 0.26 | $ 0.36 | $ 1.53 | $ 1.01 |
Shares used to compute Innoviva basic and diluted net income per share: | ||||
Shares used to compute basic net income per share | 101,358 | 101,191 | 101,306 | 101,134 |
Shares used to compute diluted net income per share | 113,572 | 113,415 | 113,543 | 113,394 |
Royalty revenue from a related party | ||||
Revenue: | ||||
Total net revenue | $ 88,694 | $ 65,755 | $ 236,318 | $ 185,045 |
Revenue from collaborative arrangements with a related party | ||||
Revenue: | ||||
Total net revenue | $ 0 | $ 0 | $ 10,000 | $ 0 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Royalty revenue from a related party | GSK | ||||
Amortization of capitalized fees paid to a related party | $ 3,456 | $ 3,456 | $ 10,368 | $ 10,368 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 41,621 | $ 47,051 | $ 218,798 | $ 133,131 |
Unrealized gain (loss) on marketable securities, net | 2 | (8) | (27) | 28 |
Comprehensive income | 41,623 | 47,043 | 218,771 | 133,159 |
Comprehensive income attributable to noncontrolling interest | 13,403 | 7,242 | 48,299 | 21,792 |
Comprehensive income attributable to Innoviva stockholders | $ 28,220 | $ 39,801 | $ 170,472 | $ 111,367 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest | Total | |
Balance at Dec. 31, 2018 | $ 1,011 | $ 1,256,267 | $ (3) | $ (1,103,692) | $ 5,469 | $ 159,052 | |
Balance (in shares) at Dec. 31, 2018 | 101,098 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding | $ 1 | 253 | 0 | 0 | 0 | 254 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | 85 | ||||||
Stock-based compensation | $ 0 | 605 | 0 | 0 | 0 | 605 | |
Net income | 0 | 0 | 0 | 33,790 | 6,229 | 40,019 | |
Other comprehensive income | 0 | 0 | 13 | 0 | 0 | 13 | |
Balance at Mar. 31, 2019 | $ 1,012 | 1,257,125 | 10 | (1,069,902) | 11,698 | 199,943 | |
Balance (in shares) at Mar. 31, 2019 | 101,183 | ||||||
Balance at Dec. 31, 2018 | $ 1,011 | 1,256,267 | (3) | (1,103,692) | 5,469 | 159,052 | |
Balance (in shares) at Dec. 31, 2018 | 101,098 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | 133,131 | ||||||
Balance at Sep. 30, 2019 | $ 1,013 | 1,258,370 | 25 | (992,353) | 16,708 | 283,763 | |
Balance (in shares) at Sep. 30, 2019 | 101,279 | ||||||
Balance at Mar. 31, 2019 | $ 1,012 | 1,257,125 | 10 | (1,069,902) | 11,698 | 199,943 | |
Balance (in shares) at Mar. 31, 2019 | 101,183 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding | $ 1 | 200 | 0 | 0 | 0 | 201 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | 89 | ||||||
Stock-based compensation | $ 0 | 474 | 0 | 0 | 0 | 474 | |
Net income | 0 | 0 | 0 | 37,740 | 8,321 | 46,061 | |
Other comprehensive income | 0 | 0 | 23 | 0 | 0 | 23 | |
Balance at Jun. 30, 2019 | $ 1,013 | 1,257,799 | 33 | (1,032,162) | 20,019 | 246,702 | |
Balance (in shares) at Jun. 30, 2019 | 101,272 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions to noncontrolling interest | $ 0 | 0 | 0 | 0 | (10,553) | (10,553) | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding | $ 0 | 82 | 0 | 0 | 0 | 82 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | 7 | ||||||
Stock-based compensation | $ 0 | 489 | 0 | 0 | 0 | 489 | |
Net income | 0 | 0 | 0 | 39,809 | 7,242 | 47,051 | |
Other comprehensive income | 0 | 0 | (8) | 0 | 0 | (8) | |
Balance at Sep. 30, 2019 | $ 1,013 | 1,258,370 | 25 | (992,353) | 16,708 | 283,763 | |
Balance (in shares) at Sep. 30, 2019 | 101,279 | ||||||
Balance at Dec. 31, 2019 | $ 1,013 | 1,258,859 | 27 | (946,404) | 28,621 | $ 342,116 | [1] |
Balance (in shares) at Dec. 31, 2019 | 101,288 | 101,288 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions to noncontrolling interest | $ 0 | 0 | 0 | 0 | (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 | $ 0 | 170 | 0 | 0 | 0 | 170 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | 32 | ||||||
Stock-based compensation | $ 0 | 435 | 0 | 0 | 0 | 435 | |
Net income | 0 | 0 | 0 | 65,437 | 13,515 | 78,952 | |
Other comprehensive income | 0 | 0 | 6 | 0 | 0 | 6 | |
Balance at Mar. 31, 2020 | $ 1,013 | 1,259,464 | 33 | (880,967) | 26,326 | 405,869 | |
Balance (in shares) at Mar. 31, 2020 | 101,320 | ||||||
Balance at Dec. 31, 2019 | $ 1,013 | 1,258,859 | 27 | (946,404) | 28,621 | $ 342,116 | [1] |
Balance (in shares) at Dec. 31, 2019 | 101,288 | 101,288 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income | $ 218,798 | ||||||
Balance at Sep. 30, 2020 | $ 1,014 | 1,260,447 | 0 | (775,905) | 49,316 | $ 534,872 | |
Balance (in shares) at Sep. 30, 2020 | 101,391 | 101,391 | |||||
Balance at Mar. 31, 2020 | $ 1,013 | 1,259,464 | 33 | (880,967) | 26,326 | $ 405,869 | |
Balance (in shares) at Mar. 31, 2020 | 101,320 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Equity activity of noncontrolling interest from a consolidated variable interest entity | $ 0 | 0 | 0 | 0 | 350 | 350 | |
Distributions to noncontrolling interest | 0 | 0 | 0 | 0 | (12,152) | (12,152) | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding | $ 2 | 178 | 0 | 0 | 0 | 180 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | 72 | ||||||
Stock-based compensation | $ 0 | 375 | 0 | 0 | 0 | 375 | |
Net income | 0 | 0 | 0 | 76,844 | 21,381 | 98,225 | |
Other comprehensive income | 0 | 0 | (35) | 0 | 0 | (35) | |
Balance at Jun. 30, 2020 | $ 1,015 | 1,260,017 | (2) | (804,123) | 35,905 | 492,812 | |
Balance (in shares) at Jun. 30, 2020 | 101,392 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Equity activity of noncontrolling interest from a consolidated variable interest entity | $ 0 | 0 | 0 | 0 | 8 | 8 | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding | $ (1) | (11) | 0 | 0 | 0 | (12) | |
Exercise of stock options, and issuance of common stock units and stock awards, net of repurchase of shares to satisfy tax withholding (in shares) | (1) | ||||||
Stock-based compensation | $ 0 | 441 | 0 | 0 | 0 | 441 | |
Net income | 0 | 0 | 0 | 28,218 | 13,403 | 41,621 | |
Other comprehensive income | 0 | 0 | 2 | 0 | 0 | 2 | |
Balance at Sep. 30, 2020 | $ 1,014 | $ 1,260,447 | $ 0 | $ (775,905) | $ 49,316 | $ 534,872 | |
Balance (in shares) at Sep. 30, 2020 | 101,391 | 101,391 | |||||
[1] | Consolidated balance sheet as of December 31, 2019 has been derived from audited consolidated financial statements. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 218,798 | $ 133,131 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred income taxes | 44,689 | 29,499 |
Depreciation and amortization | 10,382 | 10,400 |
Stock-based compensation | 1,251 | 1,568 |
Amortization of debt discount and issuance costs | 6,230 | 5,789 |
Amortization of discount on short-term investments | (343) | (1,739) |
Amortization of lease guarantee | 135 | (243) |
Loss on write-off of property and equipment | 0 | 104 |
Changes in fair values of equity investments | (39,245) | 0 |
Other non-cash items | 14 | 0 |
Changes in operating assets and liabilities: | ||
Receivables from collaborative arrangements | (12,723) | 14,075 |
Prepaid expenses and other current assets | 264 | 466 |
Other assets | 0 | (11) |
Accounts payable | 613 | 24 |
Accrued personnel-related expenses and other accrued liabilities | 252 | 107 |
Accrued interest payable | (2,484) | (2,491) |
Other long-term liabilities | 0 | (126) |
Net cash provided by operating activities | 227,833 | 190,553 |
Cash flows from investing activities | ||
Maturities of marketable securities | 86,000 | 160,925 |
Purchases of marketable securities | (12,943) | (230,922) |
Purchases of equity investments | (72,500) | 0 |
Purchases of property and equipment | (13) | 0 |
Net cash provided by (used in) investing activities | 544 | (69,997) |
Cash flows from financing activities | ||
Repurchase of shares to satisfy tax withholding | (83) | (81) |
Payments of cash dividends to stockholders | 0 | (11) |
Proceeds from issuances of common stock, net | 421 | 618 |
Net proceeds from the issuance of variable interest entity's equity | 344 | 0 |
Distributions to noncontrolling interest | (27,962) | (10,553) |
Net cash used in financing activities | (27,280) | (10,027) |
Net increase in cash and cash equivalents | 201,097 | 110,529 |
Cash and cash equivalents at beginning of period | 278,096 | 62,417 |
Cash and cash equivalents at end of period | 479,193 | 172,946 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | $ 9,933 | $ 10,674 |
Description of Operations and S
Description of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Description of Operations and Summary of Significant Accounting Policies | |
Description of Operations and Summary of Significant Accounting Policies | 1. Description of Operations and Summary of Significant Accounting Policies Description of Operations Innoviva Inc. (referred to as "Innoviva", the "Company", or "we" and other similar pronouns) is a company with a portfolio of royalties that includes respiratory assets partnered with Glaxo Group Limited (“GSK”), including RELVAR ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In our opinion, the unaudited consolidated financial statements have been prepared on the same basis as audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of our financial position, results of operations, comprehensive income and cash flows. The interim results are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020 or any other period. The accompanying unaudited consolidated financial statements include the accounts of Innoviva and certain variable interest entities for which we are the primary beneficiary. All intercompany transactions have been eliminated. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interest in our unaudited consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on February 19, 2020, and as amended on February 21, 2020 (“2019 Form 10-K”). Variable Interest Entities We evaluate our ownership, contractual and other interest in the entities that we invest in to determine if they are variable interest entities (“VIEs”), whether we have a variable interest in those entities and the nature and extent of those interests. Such evaluation is performed continually throughout the entire period when we stay involved with these entities. Based on our evaluation, if we determine we are the primary beneficiary of a VIE, we consolidate the entity’s financial results into our financial statements. We consolidate the financial results of TRC and Pulmoquine Therapeutics, Inc. (“Pulmoquine”), which we have determined to be VIEs, because we have the power to direct the economically significant activities of these entities and the obligation to absorb losses of, or the right to receive benefits from them, and we are the primary beneficiary of the entities. Equity Investments We invest from time to time in equity securities of private or public companies. If we determine that we do not have control over these companies under either voting or VIE models, we then determine if we have an ability to exercise significant influence via voting interests, board representation or other business relationships. We may account for the equity investments where we exercise significant influence using either an equity method of accounting or at fair value by electing the fair value option under Accounting Standards Codification ("ASC") Topic 825, Financial Instruments If we conclude that we do not have an ability to exercise significant influence over an investee, we may elect to account for an equity security without a readily determinable fair value using a measurement alternative. This measurement alternative allows us to measure the equity investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of September 30, 2020, we accounted for our equity investments in common stock and warrants of Armata Pharmaceuticals, Inc. (NYSE American: ARMP) (“Armata ") and Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX) ("Entasis”) at fair value by electing the fair value option and presented the investments as equity investments on the consolidated balance sheets. Accounting Pronouncement Adopted by the Company In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments Recently Issued Accounting Standards or Updates Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” In August 2020, the FASB issued ASU 2020-06, "Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Net Income Per Share | |
Net Income Per Share | 2. Net Income Per Share Basic net income per share attributable to Innoviva stockholders is computed by dividing net income attributable to Innoviva stockholders by the weighted-average number of shares of common stock outstanding. Diluted net income per share attributable to Innoviva stockholders is computed by dividing net income attributable to Innoviva stockholders by the weighted-average number of shares of common stock and dilutive potential common stock equivalents then outstanding. Dilutive potential common stock equivalents include the assumed exercise, vesting and issuance of employee stock awards using the treasury stock method, as well as common stock issuable upon assumed conversion of our convertible subordinated notes due 2023 (the “2023 Notes”) using the if converted method. Our convertible senior notes due 2025 (the “2025 Notes”) are convertible, based on the applicable conversion rate, into cash, shares of our common stock or a combination thereof, at our election. Our current intent is to settle the principal amount of the 2025 Notes in cash upon conversion. The impact of the assumed conversion premium to diluted net income per share is computed using the treasury stock method. As the average market price per share of our common stock as reported on The Nasdaq Global Select Market was lower than the initial conversion price of $17.26 per share, there was no dilutive effect of the assumed conversion premium for the three and nine months ended September 30, 2020 and 2019, respectively. The following table shows the computation of basic and diluted net income per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except per share data) 2020 2019 2020 2019 Numerator: Net income attributable to Innoviva stockholders, basic $ 28,218 $ 39,809 $ 170,499 $ 111,339 Add: interest expense on 2023 Notes 1,171 1,157 3,535 3,482 Net income attributable to Innoviva stockholders, diluted $ 29,389 $ 40,966 $ 174,034 $ 114,821 Denominator: Weighted-average shares used to compute basic net income per share attributable to Innoviva stockholders 101,358 101,191 101,306 101,134 Dilutive effect of 2023 Notes 12,189 12,189 12,189 12,189 Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan 25 35 48 71 Weighted-average shares used to compute diluted net income per share attributable to Innoviva stockholders 113,572 113,415 113,543 113,394 Net income per share attributable to Innoviva stockholders Basic $ 0.28 $ 0.39 $ 1.68 $ 1.10 Diluted $ 0.26 $ 0.36 $ 1.53 $ 1.01 Anti-Dilutive Securities The following common stock equivalents were not included in the computation of diluted net income per share because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Outstanding options and awards granted under equity incentive plan and employee stock purchase plan 1,268 1,144 1,172 1,128 |
Revenue Recognition and Collabo
Revenue Recognition and Collaborative Arrangements | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition and Collaborative Arrangements | |
Revenue Recognition and Collaborative Arrangements | 3. Revenue Recognition and Collaborative Arrangements Net Revenue from Collaborative Arrangements Net revenue recognized under our GSK Agreements was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Royalties from a related party — RELVAR/BREO $ 63,893 $ 46,433 $ 165,612 $ 136,259 Royalties from a related party — ANORO 11,882 11,548 32,931 30,753 Royalties from a related party — TRELEGY 16,375 11,230 48,143 28,401 Total royalties from a related party 92,150 69,211 246,686 195,413 Less: amortization of capitalized fees paid to a related party (3,456) (3,456) (10,368) (10,368) Royalty revenue 88,694 65,755 236,318 185,045 Strategic alliance — MABA program — — 10,000 — Total net revenue from GSK $ 88,694 $ 65,755 $ 246,318 $ 185,045 During the nine months ended September 30, 2020, we recognized $10.0 million in revenue in connection with the termination of the Bifunctional Muscarinic Antagonist-Beta2 Agonist (“MABA”) program under the Strategic Alliance Agreement with GSK in June 2020. |
Consolidated Entities
Consolidated Entities | 9 Months Ended |
Sep. 30, 2020 | |
Consolidated Entities | |
Consolidated Entities | 4. Consolidated Entities Theravance Respiratory Company, LLC As of September 30, 2020, and December 31, 2019, $16.4 million and $14.4 million, respectively, of the related party receivables from collaborative arrangements were attributable to TRC. The cash balance attributable to TRC as of September 30, 2020 was $41.4 million. Total revenue for TRC related to TRELEGY ® ® Pulmoquine Therapeutics, Inc. On April 20, 2020, we entered into a securities purchase agreement with Pulmoquine to purchase 5,808,550 shares of Series A preferred stock for $5.0 million in cash. Upon consummation of the transaction, we owned approximately 90.9% of Pulmoquine's outstanding shares (excluding unvested restricted shares) and hold a majority voting interest. Pulmoquine is a biotechnology company focused on the research and development of an aerosolized formulation of hydroxychloroquine to treat respiratory infections, such as the novel coronavirus (“COVID-19”). As of September 30, 2020, total assets attributable to Pulmoquine were $4.6 million, including $4.3 million in cash and cash equivalents and $0.3 million in other current assets. Pulmoquine does not currently generate revenue. Total operating expense was $1.1 million and $1.7 million for the three and nine months ended September 30, 2020. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments and Fair Value Measurements | |
Financial Instruments and Fair Value Measurements | 5. Financial Instruments and Fair Value Measurements Equity Investment in Armata On January 27, 2020, we entered into a securities purchase agreement to acquire 8,710,800 shares of Armata’s common stock and warrants to purchase up to 8,710,800 additional shares of its common stock for $25.0 million in cash. Armata is a clinical stage biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections. The investment is to support Armata’s ongoing advancement of its bacteriophage development programs including the expected first in human studies related to Armata's lead phage candidate, AP-PA02, targeting Pseudomonas aeruginosa Staphylococcus Aureus . The investment was closed in two tranches on February 12, 2020 and March 27, 2020. Two of our board members joined Armata’s board. After the second closing, we owned approximately 46.7% of Armata’s common stock. The investment provides Innoviva the ability to have significant influence, but not control over Armata’s operations. Based on our evaluation, we determined that Armata is a VIE, but Innoviva is not the primary beneficiary of the VIE. We elected the fair value option to account for both Armata’s common stock and warrants. The fair value of Armata’s common stock is measured based on its closing market price. The warrants have an exercise price of $2.87 per share, are exercisable immediately within five years from the issuance date of the warrants, and include a cashless exercise option. We use the Black-Scholes-Merton pricing model to estimate the fair value of these warrants with the following input assumptions: Armata’s closing market price on the valuation date, the risk-free interest rate computed based on the U.S. Treasury yield, the remaining contractual term as the expected term, and the expected stock price volatility calculated based on the historical volatility of the common stock of Armata and its peer companies. As of September 30, 2020, the fair values of Armata’s common stock and warrants were estimated at $27.8 million and $20.2 million, respectively. The total fair value of both financial instruments in the amount of $48.0 million was recorded as equity investments on the consolidated balance sheets as of September 30, 2020. We recorded $12.4 million in unrealized loss and $23.0 million in unrealized gain from fair value changes in Armata’s investments as changes in fair values of equity investments, net on the consolidated statements of income for the three and nine months ended September 30, 2020, respectively. Equity Investment in Entasis On April 12, 2020, we entered into a securities purchase agreement with Entasis (“April 2020 Entasis Agreement”) to purchase 14,000,000 shares of Entasis common stock as well as warrants to purchase 14,000,000 additional shares of its common stock for approximately $35.0 million in cash. Entasis is a clinical-stage biotechnology company focused on the discovery and development of novel antibacterial products. The investment is to support Entasis's ongoing advancement of its pathogen-targeted antibacterial product candidates, which include their global Phase 3 registration trial evaluating a fixed-dose combination of sulbactam and durlobactam (SUL-DUR) against Acinetobacter baumanii The investment was closed in two tranches on April 22, 2020 and June 11, 2020. Innoviva has a right to designate two members to Entasis's board. After the second closing, we owned approximately 51.3% of Entasis's common stock. On August 27, 2020, we entered into another securities purchase agreement with Entasis ("August 2020 Entasis Agreement") to purchase 4,672,897 shares of Entasis common stock as well as warrants to purchase 4,672,897 additional shares of its common stock for approximately $12.5 million in cash. On September 1, 2020, we completed the purchase and increased our ownership in Entasis's common stock to 52.6%. The investment provides Innoviva the ability to have significant influence, but not control, over Entasis's operations. Based on our evaluation, we determined that Entasis is a VIE, but Innoviva is not the primary beneficiary of the VIE. We elected the fair value option to account for both Entasis's common stock and warrants at fair value. The fair value of Entasis's common stock is measured based on its closing market price at each balance sheet date. The warrants have an exercise price of $2.50 per share under the April 2020 Entasis Agreement and an exercise price of $2.675 under the August 2020 Entasis Agreement. The warrants are exercisable immediately within five years from the issuance date of the warrants and include a cashless exercise option. We use the Black-Scholes-Merton pricing model to estimate the fair value of these warrants with the following input assumptions: Entasis's closing market price on the valuation date, the risk-free interest rate computed based on the U.S. Treasury yield, the remaining contractual term as the expected term, and the expected stock price volatility calculated based on the historical volatility of the common stock of Entasis and its peer companies. As of September 30, 2020, the fair values of Entasis's common stock and warrants were estimated at $38.1 million and $25.7 million, respectively. The total fair value of both financial instruments in the amount of $63.8 million was recorded as equity investments on the consolidated balance sheets. We recorded $17.0 million in unrealized loss and $16.3 million in unrealized gain from fair value changes in Entasis's investments as changes in fair values of equity investments, net on the consolidated statements of income for the three and nine months ended September 30, 2020, respectively. Available-for-Sale Securities The estimated fair value of available-for-sale securities is based on quoted market prices for these or similar investments that were based on prices obtained from a commercial pricing service. Available-for-sale securities are summarized below: September 30, 2020 Gross Gross Unrealized Unrealized Estimated (In thousands) Amortized Cost Gains Losses Fair Value Money market funds $ 430,144 $ — $ — $ 430,144 Total $ 430,144 $ — $ — $ 430,144 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 As of September 30, 2020, all investments were money market funds. There was no credit loss as of September 30, 2020. Fair Value Measurements Our available-for-sale securities and equity investments are measured at fair value on a recurring basis and our debt is carried at amortized cost basis. The estimated fair values were as follows: Estimated Fair Value Measurements as of September 30, 2020 Using: Quoted Price Significant in Active Other Significant Markets for Observable Unobservable Types of Instruments Identical Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets Money market funds $ 430,144 $ — $ — $ 430,144 Equity investment - Armata Common Stock 27,787 — — 27,787 Equity investment - Armata Warrants — 20,167 — 20,167 Equity investment - Entasis Common Stock 38,093 — — 38,093 Equity investment - Entasis Warrants — 25,698 — 25,698 Total assets measured at estimated fair value $ 496,024 $ 45,865 $ — $ 541,889 Debt 2023 Notes $ — $ 230,494 $ — $ 230,494 2025 Notes — 191,491 — 191,491 Total fair value of debt $ — $ 421,985 $ — $ 421,985 Estimated Fair Value Measurements as of December 31, 2019 Using: Quoted Price Significant in Active Other Significant Markets for Observable Unobservable Types of Instruments Identical Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets U.S. government securities $ — $ 53,834 $ — $ 53,834 U.S. commercial paper — 18,915 — 18,915 Money market funds 233,992 — — 233,992 Total assets measured at estimated fair value $ 233,992 $ 72,749 $ — $ 306,741 Debt 2023 Notes $ — $ 243,394 $ — $ 243,394 2025 Notes — 208,976 — 208,976 Total fair value of debt $ — $ 452,370 $ — $ 452,370 The fair value of our marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. The fair values of our equity investments in Armata and Entasis's common stock are based on their respective closing market prices per share at the reporting date and are classified as Level 1 financial instruments. The fair values of our equity investments in Armata and Entasis's warrants are included within Level 2 as the assumptions used in the valuation model are based on the observable inputs that include their respective closing market prices per share, their respective comparable companies’ market data and the U.S. Treasury yield. The fair value of our 2023 Notes and of our 2025 Notes is based on recent trading prices of the instruments. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Stock-Based Compensation | 6. Stock-Based Compensation Stock-based compensation expense is included in the consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 General and administrative $ 441 $ 489 $ 1,251 $ 1,568 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Debt | 7. Debt Our debt consists of: September 30, December 31, (In thousands) 2020 2019 2023 Notes $ 240,984 $ 240,984 2025 Notes 192,500 192,500 Total debt 433,484 433,484 Unamortized debt discount and issuance costs (50,134) (56,364) Net long-term debt $ 383,350 $ 377,120 Convertible Senior Notes Due 2025 In accordance with accounting guidance for debt with conversion and other options, we separately account for the liability and equity components of the 2025 Notes by allocating the proceeds between the liability component and the embedded conversion option (“equity component”) due to our ability to settle the conversion obligation of the 2025 Notes in cash, common stock or a combination of cash and common stock, at our option. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature using the income approach. The allocation was performed in a manner that reflected our non-convertible debt borrowing rate for similar debt. The equity component of the 2025 Notes was recognized as a debt discount and represents the difference between the proceeds from the issuance of the 2025 Notes and the fair value of the liability of the 2025 Notes on the date of issuance. The excess of the principal amount of the liability component over its carrying amount (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2025 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. Our outstanding 2025 Notes balances consisted of the following: September 30, December 31, (In thousands) 2020 2019 Liability component Principal $ 192,500 $ 192,500 Debt discount and issuance costs, net (48,788) (54,597) Net carrying amount $ 143,712 $ 137,903 Equity component, net $ 65,361 $ 65,361 The following table sets forth total interest expense recognized related to the 2025 Notes for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Contractual interest expense $ 1,203 $ 1,203 $ 3,609 $ 3,609 Amortization of debt issuance costs 152 139 446 408 Amortization of debt discount 1,828 1,673 5,363 4,909 Total interest and amortization expense $ 3,183 $ 3,015 $ 9,418 $ 8,926 Debt Maturities The aggregate scheduled maturities of our long-term debt as of September 30, 2020, are as follows: (In thousands) Years ending December 31: 2020 to 2022 $ — 2023 240,984 2024 — Thereafter 192,500 Total $ 433,484 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 8. Commitments and Contingencies Lease Future minimum operating lease payments on our corporate headquarters as of September 30, 2020 are as follows: (In thousands) Years ending December 31: Remainder of 2020 $ 30 2021 123 2022 109 Thereafter — Total $ 262 Legal Proceedings From time to time, the Company is involved in legal proceedings in the ordinary course of its business. Currently, we believe that no litigation or arbitration, either individually or in the aggregate, to which we are presently a party is likely to have a material adverse effect on our operating results or financial position. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Taxes | |
Income Taxes | 9. Income Taxes Provisional income tax expense for the three and nine months ended September 30, 2020 was $8.9 million and $44.7 million, respectively, compared to $10.6 million and $29.5 million for the same periods in 2019 respectively. The Company’s effective income tax rate for the nine months ended September 30, 2020 was 17%, compared to 18% for the same period in 2019. The difference between the Company’s effective income tax rate and the U.S. federal statutory income tax rate of 21% is primarily attributable to state income tax, non-deductible expenses and noncontrolling interest. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 10. Subsequent Events In early October 2020, TRC invested $15.0 million in the equity securities of a privately held biopharmaceutical company. |
Description of Operations and_2
Description of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Description of Operations and Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements. In our opinion, the unaudited consolidated financial statements have been prepared on the same basis as audited consolidated financial statements and include all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of our financial position, results of operations, comprehensive income and cash flows. The interim results are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020 or any other period. The accompanying unaudited consolidated financial statements include the accounts of Innoviva and certain variable interest entities for which we are the primary beneficiary. All intercompany transactions have been eliminated. For consolidated entities where we own or are exposed to less than 100% of the economics, we record net income (loss) attributable to noncontrolling interest in our unaudited consolidated statements of income equal to the percentage of the economic or ownership interest retained in such entities by the respective noncontrolling parties. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”) on February 19, 2020, and as amended on February 21, 2020 (“2019 Form 10-K”). |
Variable Interest Entities | Variable Interest Entities We evaluate our ownership, contractual and other interest in the entities that we invest in to determine if they are variable interest entities (“VIEs”), whether we have a variable interest in those entities and the nature and extent of those interests. Such evaluation is performed continually throughout the entire period when we stay involved with these entities. Based on our evaluation, if we determine we are the primary beneficiary of a VIE, we consolidate the entity’s financial results into our financial statements. We consolidate the financial results of TRC and Pulmoquine Therapeutics, Inc. (“Pulmoquine”), which we have determined to be VIEs, because we have the power to direct the economically significant activities of these entities and the obligation to absorb losses of, or the right to receive benefits from them, and we are the primary beneficiary of the entities. |
Equity Investments | Equity Investments We invest from time to time in equity securities of private or public companies. If we determine that we do not have control over these companies under either voting or VIE models, we then determine if we have an ability to exercise significant influence via voting interests, board representation or other business relationships. We may account for the equity investments where we exercise significant influence using either an equity method of accounting or at fair value by electing the fair value option under Accounting Standards Codification ("ASC") Topic 825, Financial Instruments If we conclude that we do not have an ability to exercise significant influence over an investee, we may elect to account for an equity security without a readily determinable fair value using a measurement alternative. This measurement alternative allows us to measure the equity investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of September 30, 2020, we accounted for our equity investments in common stock and warrants of Armata Pharmaceuticals, Inc. (NYSE American: ARMP) (“Armata ") and Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX) ("Entasis”) at fair value by electing the fair value option and presented the investments as equity investments on the consolidated balance sheets. |
Accounting Pronouncement Adopted by the Company | Accounting Pronouncement Adopted by the Company In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13 Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments |
Recently Issued Accounting Standards or Updates Not Yet Adopted | Recently Issued Accounting Standards or Updates Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” In August 2020, the FASB issued ASU 2020-06, "Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Net Income Per Share | |
Schedule of computation of basic and diluted net income per share | The following table shows the computation of basic and diluted net income per share for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands except per share data) 2020 2019 2020 2019 Numerator: Net income attributable to Innoviva stockholders, basic $ 28,218 $ 39,809 $ 170,499 $ 111,339 Add: interest expense on 2023 Notes 1,171 1,157 3,535 3,482 Net income attributable to Innoviva stockholders, diluted $ 29,389 $ 40,966 $ 174,034 $ 114,821 Denominator: Weighted-average shares used to compute basic net income per share attributable to Innoviva stockholders 101,358 101,191 101,306 101,134 Dilutive effect of 2023 Notes 12,189 12,189 12,189 12,189 Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan 25 35 48 71 Weighted-average shares used to compute diluted net income per share attributable to Innoviva stockholders 113,572 113,415 113,543 113,394 Net income per share attributable to Innoviva stockholders Basic $ 0.28 $ 0.39 $ 1.68 $ 1.10 Diluted $ 0.26 $ 0.36 $ 1.53 $ 1.01 |
Schedule of anti-dilutive securities | The following common stock equivalents were not included in the computation of diluted net income per share because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Outstanding options and awards granted under equity incentive plan and employee stock purchase plan 1,268 1,144 1,172 1,128 |
Revenue Recognition and Colla_2
Revenue Recognition and Collaborative Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue Recognition and Collaborative Arrangements | |
Schedule of net revenue from collaborative arrangements | Net revenue recognized under our GSK Agreements was as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Royalties from a related party — RELVAR/BREO $ 63,893 $ 46,433 $ 165,612 $ 136,259 Royalties from a related party — ANORO 11,882 11,548 32,931 30,753 Royalties from a related party — TRELEGY 16,375 11,230 48,143 28,401 Total royalties from a related party 92,150 69,211 246,686 195,413 Less: amortization of capitalized fees paid to a related party (3,456) (3,456) (10,368) (10,368) Royalty revenue 88,694 65,755 236,318 185,045 Strategic alliance — MABA program — — 10,000 — Total net revenue from GSK $ 88,694 $ 65,755 $ 246,318 $ 185,045 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments and Fair Value Measurements | |
Schedule of amortized cost and estimated fair values for available-for-sale securities | Available-for-sale securities are summarized below: September 30, 2020 Gross Gross Unrealized Unrealized Estimated (In thousands) Amortized Cost Gains Losses Fair Value Money market funds $ 430,144 $ — $ — $ 430,144 Total $ 430,144 $ — $ — $ 430,144 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 |
Schedule of available-for-sale securities measured at fair value on a recurring basis | The estimated fair values were as follows: Estimated Fair Value Measurements as of September 30, 2020 Using: Quoted Price Significant in Active Other Significant Markets for Observable Unobservable Types of Instruments Identical Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets Money market funds $ 430,144 $ — $ — $ 430,144 Equity investment - Armata Common Stock 27,787 — — 27,787 Equity investment - Armata Warrants — 20,167 — 20,167 Equity investment - Entasis Common Stock 38,093 — — 38,093 Equity investment - Entasis Warrants — 25,698 — 25,698 Total assets measured at estimated fair value $ 496,024 $ 45,865 $ — $ 541,889 Debt 2023 Notes $ — $ 230,494 $ — $ 230,494 2025 Notes — 191,491 — 191,491 Total fair value of debt $ — $ 421,985 $ — $ 421,985 Estimated Fair Value Measurements as of December 31, 2019 Using: Quoted Price Significant in Active Other Significant Markets for Observable Unobservable Types of Instruments Identical Assets Inputs Inputs (In thousands) Level 1 Level 2 Level 3 Total Assets U.S. government securities $ — $ 53,834 $ — $ 53,834 U.S. commercial paper — 18,915 — 18,915 Money market funds 233,992 — — 233,992 Total assets measured at estimated fair value $ 233,992 $ 72,749 $ — $ 306,741 Debt 2023 Notes $ — $ 243,394 $ — $ 243,394 2025 Notes — 208,976 — 208,976 Total fair value of debt $ — $ 452,370 $ — $ 452,370 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stock-Based Compensation | |
Schedule of stock-based compensation expense | Stock-based compensation expense is included in the consolidated statements of income as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 General and administrative $ 441 $ 489 $ 1,251 $ 1,568 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt | |
Schedule of debt | Our debt consists of: September 30, December 31, (In thousands) 2020 2019 2023 Notes $ 240,984 $ 240,984 2025 Notes 192,500 192,500 Total debt 433,484 433,484 Unamortized debt discount and issuance costs (50,134) (56,364) Net long-term debt $ 383,350 $ 377,120 |
Aggregate scheduled maturities of long-term debt | The aggregate scheduled maturities of our long-term debt as of September 30, 2020, are as follows: (In thousands) Years ending December 31: 2020 to 2022 $ — 2023 240,984 2024 — Thereafter 192,500 Total $ 433,484 |
2025 Notes | |
Debt | |
Summary of liability and equity components of convertible notes | Our outstanding 2025 Notes balances consisted of the following: September 30, December 31, (In thousands) 2020 2019 Liability component Principal $ 192,500 $ 192,500 Debt discount and issuance costs, net (48,788) (54,597) Net carrying amount $ 143,712 $ 137,903 Equity component, net $ 65,361 $ 65,361 |
Schedule of components of interest expense | The following table sets forth total interest expense recognized related to the 2025 Notes for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Contractual interest expense $ 1,203 $ 1,203 $ 3,609 $ 3,609 Amortization of debt issuance costs 152 139 446 408 Amortization of debt discount 1,828 1,673 5,363 4,909 Total interest and amortization expense $ 3,183 $ 3,015 $ 9,418 $ 8,926 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments | Future minimum operating lease payments on our corporate headquarters as of September 30, 2020 are as follows: (In thousands) Years ending December 31: Remainder of 2020 $ 30 2021 123 2022 109 Thereafter — Total $ 262 |
Description of Operations and_3
Description of Operations and Summary of Significant Accounting Policies - Description of Operations and Variable Interest Entity (Details) - Long-Acting Beta2 Agonist (LABA) Collaboration - GSK $ in Billions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Description of Operations and Summary of Significant Accounting Policies | |
Percentage of economic interest in any future payments made under the agreements | 15.00% |
RELVAR/BREO | |
Description of Operations and Summary of Significant Accounting Policies | |
Royalty rate for first level of annual global net sales (as a percent) | 15.00% |
Annual global sales level used to determine royalty rate | $ 3 |
Royalty rate for sales above first level of annual global net sales (as a percent) | 5.00% |
ANORO | Minimum | |
Description of Operations and Summary of Significant Accounting Policies | |
Royalty rate for combination products (as a percent) | 6.50% |
ANORO | Maximum | |
Description of Operations and Summary of Significant Accounting Policies | |
Royalty rate for combination products (as a percent) | 10.00% |
Net Income Per Share - Basic an
Net Income Per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income attributable to Innoviva stockholders, basic | $ 28,218 | $ 39,809 | $ 170,499 | $ 111,339 |
Add: interest expense on 2023 Notes | 1,171 | 1,157 | 3,535 | 3,482 |
Net income attributable to Innoviva stockholders, diluted | $ 29,389 | $ 40,966 | $ 174,034 | $ 114,821 |
Denominator: | ||||
Weighted-average shares used to compute basic net income per share attributable to Innoviva stockholders | 101,358,000 | 101,191,000 | 101,306,000 | 101,134,000 |
Dilutive effect of 2023 Notes | 12,189,000 | 12,189,000 | 12,189,000 | 12,189,000 |
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan | 25,000 | 35,000 | 48,000 | 71,000 |
Weighted-average shares used to compute diluted net income per share attributable to Innoviva stockholders | 113,572,000 | 113,415,000 | 113,543,000 | 113,394,000 |
Net income per share attributable to Innoviva stockholders | ||||
Basic net income per share | $ 0.28 | $ 0.39 | $ 1.68 | $ 1.10 |
Diluted net income per share | $ 0.26 | $ 0.36 | $ 1.53 | $ 1.01 |
Convertible senior notes | 2025 Notes | ||||
Net Income Per Share | ||||
Dilutive effect of the assumed conversion premium | 0 | 0 | 0 | 0 |
Convertible senior notes | 2025 Notes | Common stock | ||||
Net Income Per Share | ||||
Conversion price of convertible notes into common stock (in dollars per share) | $ 17.26 | $ 17.26 | $ 17.26 | $ 17.26 |
Net Income Per Share - Anti-Dil
Net Income Per Share - Anti-Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity incentive plans and ESPP | ||||
Anti-Dilutive Securities | ||||
Anti-dilutive securities (in shares) | 1,268 | 1,144 | 1,172 | 1,128 |
Revenue Recognition and Colla_3
Revenue Recognition and Collaborative Arrangements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue Recognition and Collaborative Arrangements | ||||
Total net revenue | $ 88,694 | $ 65,755 | $ 246,318 | $ 185,045 |
Royalty revenue from a related party | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Total net revenue | 88,694 | 65,755 | 236,318 | 185,045 |
Revenue from collaborative arrangements with a related party | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Total net revenue | 0 | 0 | 10,000 | 0 |
GSK | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Total net revenue | 88,694 | 65,755 | 246,318 | 185,045 |
GSK | Royalty revenue from a related party | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Royalties from a related party | 92,150 | 69,211 | 246,686 | 195,413 |
Less: amortization of capitalized fees paid to a related party | (3,456) | (3,456) | (10,368) | (10,368) |
Total net revenue | 88,694 | 65,755 | 236,318 | 185,045 |
GSK | RELVAR/BREO | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Royalties from a related party | 63,893 | 46,433 | 165,612 | 136,259 |
GSK | ANORO | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Royalties from a related party | 11,882 | 11,548 | 32,931 | 30,753 |
GSK | TRELEGY | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Royalties from a related party | 16,375 | 11,230 | 48,143 | 28,401 |
GSK | Revenue from collaborative arrangements with a related party | Strategic alliance - MABA program | ||||
Revenue Recognition and Collaborative Arrangements | ||||
Total net revenue | $ 0 | $ 0 | $ 10,000 | $ 0 |
Consolidated Entities (Details)
Consolidated Entities (Details) - USD ($) $ in Thousands | Apr. 20, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Consolidated Entities | |||||||
Receivable from related parties | $ 92,150 | $ 92,150 | $ 79,427 | [1] | |||
Cash balance | 479,193 | 479,193 | 278,096 | [1] | |||
Total revenue | 88,694 | $ 65,755 | 246,318 | $ 185,045 | |||
Total assets | 922,256 | 922,256 | 724,826 | [1] | |||
Total operating expenses | 4,264 | 4,962 | 9,982 | 12,324 | |||
Revenue from collaborative arrangements with a related party | |||||||
Consolidated Entities | |||||||
Total revenue | 0 | 0 | 10,000 | 0 | |||
Theravance Respiratory Company, LLC | |||||||
Consolidated Entities | |||||||
Receivable from related parties | 16,400 | 16,400 | $ 14,400 | ||||
Cash balance | 41,400 | 41,400 | |||||
Total revenue | 16,400 | 11,200 | 48,100 | 28,400 | |||
Total operating expenses | 600 | $ 2,800 | 1,400 | $ 2,900 | |||
Theravance Respiratory Company, LLC | Revenue from collaborative arrangements with a related party | MABA program | |||||||
Consolidated Entities | |||||||
Total revenue | 10,000 | ||||||
Pulmoquine Therapeutics, Inc. | |||||||
Consolidated Entities | |||||||
Cash balance | 4,300 | 4,300 | |||||
Percentage of outstanding shares acquired | 90.90% | ||||||
Total assets | 4,600 | 4,600 | |||||
Other current assets | 300 | 300 | |||||
Total operating expenses | $ 1,100 | $ 1,700 | |||||
Pulmoquine Therapeutics, Inc. | Series A preferred stock | |||||||
Consolidated Entities | |||||||
Number of shares to be purchased under the securities purchase agreement | 5,808,550 | ||||||
Payments for acquire variable interest | $ 5,000 | ||||||
[1] | Consolidated balance sheet as of December 31, 2019 has been derived from audited consolidated financial statements. |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Equity Investment in Armata (Details) $ / shares in Units, $ in Thousands | Jan. 27, 2020USD ($)shares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)itemtranche$ / shares | Sep. 30, 2019USD ($) |
Equity Investment | |||||
Changes in fair values of equity investments | $ (29,368) | $ 0 | $ 39,245 | $ 0 | |
Armata | |||||
Equity Investment | |||||
Number of tranches | tranche | 2 | ||||
Number of Innoviva board members who joined investee's board | item | 2 | ||||
Equity investment ownership percentage | 46.70% | 46.70% | |||
Changes in fair values of equity investments | $ (12,400) | $ 23,000 | |||
Common stock and warrants | Armata | |||||
Equity Investment | |||||
Amount of securities purchase agreement | $ 25,000 | ||||
Equity investments at fair value | 48,000 | 48,000 | |||
Common stock | Armata | |||||
Equity Investment | |||||
Number of shares to be purchased under the securities purchase agreement | shares | 8,710,800 | ||||
Equity investments at fair value | $ 27,800 | $ 27,800 | |||
Warrants | Armata | |||||
Equity Investment | |||||
Maximum number of additional shares into which warrants may be converted under the securities purchase agreement | shares | 8,710,800 | ||||
Exercise price of warrants | $ / shares | $ 2.87 | $ 2.87 | |||
Term of warrants | 5 years | 5 years | |||
Equity investments at fair value | $ 20,200 | $ 20,200 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Equity Investment in Entasis (Details) $ / shares in Units, $ in Thousands | Aug. 27, 2020USD ($)$ / sharesshares | Apr. 12, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)trancheitem | Sep. 30, 2019USD ($) | Sep. 01, 2020 | Jun. 11, 2020 |
Equity Investment | ||||||||
Changes in fair values of equity investments | $ (29,368) | $ 0 | $ 39,245 | $ 0 | ||||
Entasis | ||||||||
Equity Investment | ||||||||
Number of tranches | tranche | 2 | |||||||
Number of investee's board members which may be designated by the Company | item | 2 | |||||||
Equity investment ownership percentage | 52.60% | 51.30% | ||||||
Changes in fair values of equity investments | (17,000) | $ 16,300 | ||||||
Common stock and warrants | Entasis | ||||||||
Equity Investment | ||||||||
Amount of securities purchase agreement | $ 12,500 | $ 35,000 | ||||||
Equity investments at fair value | 63,800 | 63,800 | ||||||
Common stock | Entasis | ||||||||
Equity Investment | ||||||||
Number of shares to be purchased under the securities purchase agreement | shares | 4,672,897 | 14,000,000 | ||||||
Equity investments at fair value | $ 38,100 | $ 38,100 | ||||||
Warrants | Entasis | ||||||||
Equity Investment | ||||||||
Maximum number of additional shares into which warrants may be converted under the securities purchase agreement | shares | 4,672,897 | 14,000,000 | ||||||
Exercise price of warrants | $ / shares | $ 2.675 | $ 2.50 | ||||||
Term of warrants | 5 years | 5 years | ||||||
Equity investments at fair value | $ 25,700 | $ 25,700 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale Securities | ||
Amortized Cost | $ 430,144 | $ 306,706 |
Gross Unrealized Gains | 0 | 35 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 430,144 | 306,741 |
Credit loss, available-for-sale debt securities | 0 | |
U.S. government securities | ||
Available-for-Sale Securities | ||
Amortized Cost | 53,799 | |
Gross Unrealized Gains | 35 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 53,834 | |
U.S. commercial paper | ||
Available-for-Sale Securities | ||
Amortized Cost | 18,915 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 18,915 | |
Money market funds | ||
Available-for-Sale Securities | ||
Amortized Cost | 430,144 | 233,992 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 430,144 | $ 233,992 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Recurring basis | ||
Assets | ||
Total assets measured at estimated fair value | $ 541,889 | $ 306,741 |
Recurring basis | U.S. government securities | ||
Assets | ||
Total assets measured at estimated fair value | 53,834 | |
Recurring basis | U.S. commercial paper | ||
Assets | ||
Total assets measured at estimated fair value | 18,915 | |
Recurring basis | Money market funds | ||
Assets | ||
Total assets measured at estimated fair value | 430,144 | 233,992 |
Recurring basis | Equity Investment | Common stock | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 27,787 | |
Recurring basis | Equity Investment | Common stock | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 38,093 | |
Recurring basis | Equity Investment | Warrants | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 20,167 | |
Recurring basis | Equity Investment | Warrants | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 25,698 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | ||
Assets | ||
Total assets measured at estimated fair value | 496,024 | 233,992 |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | U.S. government securities | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | U.S. commercial paper | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Money market funds | ||
Assets | ||
Total assets measured at estimated fair value | 430,144 | 233,992 |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Equity Investment | Common stock | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 27,787 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Equity Investment | Common stock | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 38,093 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Equity Investment | Warrants | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Equity Investment | Warrants | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | ||
Assets | ||
Total assets measured at estimated fair value | 45,865 | 72,749 |
Recurring basis | Significant Other Observable Inputs, Level 2 | U.S. government securities | ||
Assets | ||
Total assets measured at estimated fair value | 53,834 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | U.S. commercial paper | ||
Assets | ||
Total assets measured at estimated fair value | 18,915 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | Money market funds | ||
Assets | ||
Total assets measured at estimated fair value | 0 | 0 |
Recurring basis | Significant Other Observable Inputs, Level 2 | Equity Investment | Common stock | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | Equity Investment | Common stock | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | Equity Investment | Warrants | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 20,167 | |
Recurring basis | Significant Other Observable Inputs, Level 2 | Equity Investment | Warrants | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 25,698 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | ||
Assets | ||
Total assets measured at estimated fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs, Level 3 | U.S. government securities | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | U.S. commercial paper | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | Money market funds | ||
Assets | ||
Total assets measured at estimated fair value | 0 | 0 |
Recurring basis | Significant Unobservable Inputs, Level 3 | Equity Investment | Common stock | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | Equity Investment | Common stock | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | Equity Investment | Warrants | Armata | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Recurring basis | Significant Unobservable Inputs, Level 3 | Equity Investment | Warrants | Entasis | ||
Assets | ||
Total assets measured at estimated fair value | 0 | |
Nonrecurring basis | Debt | ||
Debt | ||
2023 Notes | 230,494 | 243,394 |
2025 Notes | 191,491 | 208,976 |
Total fair value of debt | 421,985 | 452,370 |
Nonrecurring basis | Quoted Price in Active Markets for Identical Assets, Level 1 | Debt | ||
Debt | ||
2023 Notes | 0 | 0 |
2025 Notes | 0 | 0 |
Total fair value of debt | 0 | 0 |
Nonrecurring basis | Significant Other Observable Inputs, Level 2 | Debt | ||
Debt | ||
2023 Notes | 230,494 | 243,394 |
2025 Notes | 191,491 | 208,976 |
Total fair value of debt | 421,985 | 452,370 |
Nonrecurring basis | Significant Unobservable Inputs, Level 3 | Debt | ||
Debt | ||
2023 Notes | 0 | 0 |
2025 Notes | 0 | 0 |
Total fair value of debt | $ 0 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
General and administrative | ||||
Stock-based compensation | ||||
Total stock-based compensation expense | $ 441 | $ 489 | $ 1,251 | $ 1,568 |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt | |||
Total debt | $ 433,484 | $ 433,484 | |
Unamortized debt discount and issuance costs | (50,134) | (56,364) | |
Net long-term debt | 383,350 | 377,120 | [1] |
2023 Notes | Convertible subordinated notes | |||
Debt | |||
Total debt | 240,984 | 240,984 | |
2025 Notes | Convertible senior notes | |||
Debt | |||
Total debt | 192,500 | 192,500 | |
Unamortized debt discount and issuance costs | $ (48,788) | $ (54,597) | |
[1] | Consolidated balance sheet as of December 31, 2019 has been derived from audited consolidated financial statements. |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes - Liability and Equity Components (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Liability component | ||
Principal | $ 433,484 | $ 433,484 |
Debt discount and issuance costs, net | (50,134) | (56,364) |
Convertible senior notes | 2025 Notes | ||
Liability component | ||
Principal | 192,500 | 192,500 |
Debt discount and issuance costs, net | (48,788) | (54,597) |
Net carrying amount | 143,712 | 137,903 |
Equity component, net | $ 65,361 | $ 65,361 |
Debt - Convertible Senior Not_2
Debt - Convertible Senior Notes - Interest and Amortization Expense (Details) - Convertible senior notes - 2025 Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest expense recognized | ||||
Contractual interest expense | $ 1,203 | $ 1,203 | $ 3,609 | $ 3,609 |
Amortization of debt issuance costs | 152 | 139 | 446 | 408 |
Amortization of debt discount | 1,828 | 1,673 | 5,363 | 4,909 |
Total interest and amortization expense | $ 3,183 | $ 3,015 | $ 9,418 | $ 8,926 |
Debt - Debt Maturities (Details
Debt - Debt Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt maturities | ||
2020 to 2022 | $ 0 | |
2023 | 240,984 | |
2024 | 0 | |
Thereafter | 192,500 | |
Total | $ 433,484 | $ 433,484 |
Commitments and Contingencies -
Commitments and Contingencies - (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Future minimum lease payments | |
Remainder of 2020 | $ 30 |
2021 | 123 |
2022 | 109 |
Thereafter | 0 |
Total | $ 262 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Taxes | ||||
Provisional income tax expense | $ 8,866 | $ 10,558 | $ 44,689 | $ 29,499 |
Effective tax rate (as a percent) | 17.00% | 18.00% | ||
Federal statutory tax rate (as a percent) | 21.00% |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | Oct. 31, 2020USD ($) |
Theravance Respiratory Company, LLC | Subsequent events | |
Subsequent Events | |
Equity investments | $ 15 |