Innoviva, Inc. · NASDAQ:INVA
Innoviva — Investor Presentation (April 2022)
22 slides from Innoviva's investor presentation, Apr 7, 2022
Slide 1: Corporate Presentation April 2022
CorporatePresentation April 2022
Slide 2: Important information
Important information On March 25, 2022, the Company filed a Definitive Proxy Statement on Schedule 14A and accompanying proxy card with the Securities and Exchange Commission (“SEC”) to be used to in connection with the Company’s 2022 annual meeting of the stockholders.THE COMPANY STRONGLY ADVISE A
Slide 3: Forward-looking statements
Forward-looking statements The information in this presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements invo
Slide 4: Innoviva overview
Innoviva overview Company highlights Diversified holding company with a portfolio of royalties and a growing portfolio of innovative healthcare investments and assetsRoyalty portfolio consists of respiratory products that were jointly developed with, and are licensed to, GSK and collectively make up
Slide 5: Royalty cashflows combined with long-term capital deployment strategy
Innoviva combines sustainable royalty cashflows with a long-term capital deployment strategy to drive innovation and maximize shareholder value Robust, valuable royalty portfolio Thoughtful, accretive capital deployment Long-term shareholder value creation + = Significant royalties from a durable an
Slide 6: Valuable royalty portfolio of respiratory therapies commercialized by GSK
Innoviva has a valuable royalty portfolio comprised of robust, durable revenues stemming from widely used respiratory therapies commercialized by GSK 2021 Global net sales ($B) Key royalty terms 2021 Innoviva royalties1 ($M) Totals 15% on first $3B in annual sales; 5% on sales over $3B 100% economic
Slide 7: Royalty product portfolio resilience and growth
Our royalty product portfolio has demonstrated resilience and growth; we remain excited about its long-term potential while we build out the next generation of high impact products Sizeable and differentiated Resilient anddurable Diversifiedand growing Differentiated respiratory therapies portfolio
Slide 8: Innoviva actively deploys its capital to maximize shareholder value
Innoviva actively deploys its capital to maximize shareholder value In 2021 we strategically repurchased GSK’s equity stake for ~$400M and continued to deploy capital into high-potential assets – with ~$480M equity and investments on the balance sheet at year-end Continued active search for strategi
Slide 9: Thoughtful and disciplined approach to strategic transactions
We approach strategic transactions in a thoughtful and disciplined manner We target fundamentally attractive, yet often overlooked or contrarian, healthcare areas where our capital and capabilities can make a difference We look for differentiated assets with meaningful value creation potential We st
Slide 10: Strategic investment case study: infectious disease
Strategic investment case study: infectious disease Infectious disease therapeutics have focused primarily on common bacteria diseases; however, there is a clear need for improved therapeutics for specific bacterial diseases, along with viral and fungal diseasesIdiosyncratic challenges leading to hi
Slide 11: Sole manager of all TRELEGY ELLIPTA royalties via TRC
Innoviva is the sole manager of all TRELEGY®ELLIPTA® royalties via TRC, seeking to maximize long-term equity holder value 11 1 – Projections per analyst consensus on GSK forecast website accessed March 28, 2022; GBP converted to USD using March 28 exchange rate of $1.31; 100% Trelegy royalties inclu
Slide 12: Management Team and Board of Directors
Relevant experience Management Team Pavel Raifeld, CFAChief Executive Officer Experienced finance and life sciences professional; formerly with Sarissa Capital, Credit Suisse, McKinsey and BCG Marianne Zhen, CPAChief Accounting Officer Experienced finance professional with over 20 years in accountin
Slide 13: 2021 milestone year in financial performance and platform
2021 was a milestone year both in terms of financial performance and strengthening our operating platform $406M total royalty revenues$364M net cash provided by operating activities$3.24 basic net income per share2$266M net income 13 Value creation Strategically deployed over $450M in 2021Accretivel
Slide 14: Why Innoviva
Why Innoviva 5 Efficient and flexible platform enabling meaningful, sustainable value generation 4 Strong track record of growth and unrelenting value creation focus 3 Thoughtful, robust approach to capital deployment with long-term horizon 2 Deep and proven healthcare expertise – across governance,
Slide 15: Appendix
Appendix 15
Slide 16: RELVAR/BREO ELLIPTA detail
RELVAR®/BREO® ELLIPTA® detail: First once-daily inhaled corticosteroid / long-acting beta-agonist for asthma and chronic obstructive pulmonary disease RELVAR® / BREO®ELLIPTA® Launched in 2013 as first and only once-daily ICS / LABA in the U.S.RELVAR®/ BREO® ELLIPTA® delivers superior, lasting proact
Slide 17: ANORO ELLIPTA detail
ANORO® ELLIPTA® detail: Best-in-class long-acting beta-agonist / long-acting muscarinic antagonist for COPD ANORO®ELLIPTA® (umeclidinium 62.5 mcg and vilanterol 25 mcg inhalation powder) Indications (US)Long-term, once-daily, maintenance treatment of airflow obstruction and reducing exacerbations in
Slide 18: TRELEGY ELLIPTA detail
TRELEGY® ELLIPTA® detail: First 3-in-1 inhaled corticosteroid / long-acting beta-agonist / long-acting muscarinic antagonist for COPD and asthma TRELEGY®ELLIPTA® Net global sales ($B) Implied royalties ($M) (fluticasone furoate 100 mcg, umeclidinium 62.5 mcg and vilanterol 25 mcg inhalation powder)
Slide 19: Net global sales and royalty revenues have grown over time
GSK net global sales1 ($B) Net global sales and royalty revenues have grown over time Innoviva Royalty Revenue2 ($M) Note: May not sum due to rounding1 – Reflects net sales from RELVAR®/ BREO® ELLIPTA®, ANORO® ELLIPTA®, TRELEGY® ELLIPTA®2 – Excludes the impacts of amortization of capitalized fees an
Slide 20: Portfolio products protected by robust IP estate
Innoviva’s portfolio products are protected by a robust IP estate with meaningful remaining exclusivity Manufacturing complexity provides further protection Primary US patent ANORO®ELLIPTA® RELVAR®/ BREO®ELLIPTA® TRELEGY®ELLIPTA® Potential expiration Key secondary US patent Potential expiration Vila
Slide 21: Additional TRC information
Additional TRC information While TRC actively manages its royalty-producing relationship with GSK, under the LLC Agreement, TRC is permitted to “engage in any lawful business”; additionally, Innoviva was granted broad “decision-making authority as to the LLC”There have been two separate arbitrations
Slide 22: Platform optimizes for lean, focused value creation
Innoviva’s platform optimizes for lean, focused value creation leveraging superior capabilities Low-cost, efficient operating platform Best-in-class internal capabilities Superior external resources access Our key operations principles are cost discipline, flexibility, and value orientation, while e