Innoviva Stock Price, News & Analysis

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.

Innoviva, Inc. (NASDAQ: INVA) plans to offer $200 million in convertible senior notes due 2028, with an option for an additional $40 million. Proceeds will be used to repurchase a portion of its 2023 Convertible Subordinated Notes, fund capped call transactions, and for general corporate purposes. The offering is subject to market conditions. The Company may engage in repurchase transactions that could influence the market price of its common stock. The offering is not registered under the Securities Act.

Innoviva reported substantial financial results for Q4 and full year 2021, with royalties rising by 18% to $111.1 million for Q4 and 19% to $405.7 million for the full year. Income from operations increased by 23% to $104.5 million in Q4 and 17% to $375.1 million for the year. Despite a $42.9 million decline in fair values of investments due to market volatility, the overall position remained strong with $201.5 million in cash and equivalents. A strategic investment of $45.0 million in Armata Pharmaceuticals is also highlighted.

Armata Pharmaceuticals announced a securities purchase agreement to sell common stock and warrants to Innoviva, raising $45 million before expenses. The funding will support Armata's clinical pipeline, particularly for AP-PA02 and AP-SA02, which target chronic Pseudomonas aeruginosa infections and complicated Staphylococcus aureus bacteremia, respectively. Innoviva will purchase 9 million shares at $5.00 each, with transactions occurring in two tranches. The second tranche is contingent on shareholder approval and is expected by the end of Q1 2022.