Innoviva Stock Price, News & Analysis

Innoviva has signed an agreement to sell its 15% stake in Theravance Respiratory Company (TRC) to Royalty Pharma for about $282 million upfront and a potential $50 million milestone payment. As part of the deal, Innoviva will maintain full ownership of TRC's private investments and retain royalty rights for ANORO and RELVAR ELLIPTA. The sale, expected to finalize in July 2022, allows Innoviva to bolster its cash position amid market uncertainties. CEO Pavel Raifeld expressed optimism about maximizing shareholder value through this transaction.

Innoviva has successfully completed its acquisition of Entasis Therapeutics, a clinical biopharmaceutical firm specializing in antibacterial products. This acquisition enhances Innoviva's portfolio with potential first- and best-in-class treatments for multidrug-resistant Gram-negative bacteria, notably the lead asset SUL-DUR. A New Drug Application for SUL-DUR is expected to be filed with the U.S. FDA in Q3 2022. The acquisition, valued at $2.20 per share, resulted in Entasis becoming a wholly-owned subsidiary, leading to its delisting from the Nasdaq.

Innoviva will acquire La Jolla Pharmaceutical Company in a deal valued at approximately $149 million. La Jolla's stockholders will receive $5.95 per share, a premium of around 70% over the 30-day average share price. The tender offer is expected to commence on or before July 25, 2022. This acquisition enhances Innoviva's portfolio, particularly in infectious diseases, by adding key products GIAPREZA and XERAVA. The merger has received unanimous approval from both companies' boards and is anticipated to close within 30 business days, pending necessary conditions.

Innoviva has announced a definitive merger agreement to acquire La Jolla Pharmaceutical Company for $5.95 per share, a 70% premium on the 30-day average. The total transaction value is approximately $149 million. This acquisition aims to enhance Innoviva’s portfolio in infectious diseases, adding La Jolla’s products, GIAPREZA® and XERAVA®. The merger is anticipated to close within 30 business days, pending necessary shareholder approvals. Following the acquisition, La Jolla will become a wholly owned subsidiary of Innoviva.

Innoviva, Inc. (Nasdaq: INVA) announced the expiration of its tender offer to acquire all shares of Entasis Therapeutics Holdings Inc. (Nasdaq: ETTX) for $2.20 per share as of July 7, 2022. A total of 11,671,662 shares were validly tendered, meeting the minimum condition for the offer. The merger is expected to close on July 11, 2022, with Entasis becoming a wholly owned subsidiary of Innoviva. Shares not tendered will also be converted to cash at the same price. Post-merger, Entasis' common stock will no longer be traded on Nasdaq.

Innoviva has announced plans to acquire all outstanding shares of Entasis for $2.20 per share in cash, marking a 50% premium to Entasis’ closing price of $1.47 on January 31, 2022. This $113 million transaction advances Innoviva’s strategy to diversify its healthcare asset portfolio. Currently, Innoviva owns approximately 60% of Entasis. The merger, unanimously approved by both boards, is expected to close in Q3 2022 and aims to accelerate development of Entasis' lead asset, SUL-DUR, a potential treatment for multidrug-resistant infections.

Innoviva reported a 5% increase in first-quarter royalties, totaling $93.5 million compared to Q1 2021. Notable earnings included $55.8 million from RELVAR®/BREO® ELLIPTA® and $29.3 million from TRELEGY® ELLIPTA®. However, income from operations saw a 2% decrease to $77.7 million due to the accounting consolidation of Entasis. Innoviva made a strategic investment of $45.0 million in Armata Pharmaceuticals and a $15.0 million offer to acquire Entasis, amidst a $9.4 million decline in asset fair values.

Armata Pharmaceuticals has successfully closed the second tranche of a $45 million private placement with Innoviva, raising approximately $26.9 million through the issuance of over 5.3 million common shares and 2.7 million warrants. This follows an initial tranche completed in February 2022 that raised $18.1 million. As of March 31, 2022, Armata has 36.1 million shares outstanding. Furthermore, their Form 10-K filed on March 17, 2022, includes a going concern note. Approximately 99% of shareholders voted in favor of the transaction, indicating strong support for the company's direction.

Innoviva, Inc. (NASDAQ: INVA) has priced a $225 million offering of 2.125% convertible senior notes due 2028, increasing from a previously announced $200 million. The offering will close on March 7, 2022. Net proceeds of approximately $216.8 million will fund the repurchase of 2023 notes, capped call transactions, and general corporate purposes. The notes are convertible into cash or stock at a conversion rate of 38.1432 shares per $1,000 principal, with a 35% premium to the last reported stock price. The company expects market activity related to the notes to affect its stock price.