Consolidated Entities (Tables)

3 Months Ended

Mar. 31, 2022

Theravance Respiratory Company, LLC

Consolidated Entities

Schedule of Balance Sheets and Income Statements of VIE

The summarized financial information for TRC is presented as follows:

Balance sheets

	March 31,		December 31,
(In thousands)	2022		2021
Assets
Cash and cash equivalents	$	74,160	$	50,713
Receivables from collaborative arrangements		29,309		42,492
Prepaid expenses and other current assets		84		71
Equity and long-term investments		49,341		37,695
Total assets	$	152,894	$	130,971
Liabilities and LLC Members’ Equity
Current liabilities	$	289	$	252
LLC members’ equity		152,605		130,719
Total liabilities and LLC members’ equity	$	152,894	$	130,971

Income statements

	Three Months Ended March 31,
(In thousands)	2022		2021
Royalty revenue from a related party	$	29,309	$	22,084
Operating expenses		198		3,281
Income from operations		29,111		18,803
Income tax expense, net		1		—
Changes in fair values of equity and long-term    investments		429		(483	)
Net income	$	29,541	$	18,320

Entasis Therapeutics Holdings Inc

Consolidated Entities

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the fair values assigned to the assets acquired and liabilities assumed as of the date of the consolidation:

(In thousands)	February 17, 2022
Cash and cash equivalents	$	23,070
Prepaid expenses		5,554
Other current assets		1,959
Property and equipment, net		185
Right-of-use assets		527
Goodwill		5,544
Intangible assets		105,000
Other assets		302
Total assets acquired	$	142,141
Accounts payable	$	1,583
Accrued personnel-related expenses		1,057
Other current liabilities		5,096
Total liabilities assumed	$	7,736
Total assets acquired, net	$	134,405

Entasis’ assets can only be used to settle its obligations. The following table provides the assets and liabilities of Entasis:

(In thousands)	March 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	33,547
Prepaid expenses		4,490
Other current assets		1,841
Total current assets		39,878
Property and equipment, net		183
Right-of-use assets		3,724
Goodwill		5,544
Intangible assets		105,000
Other assets		303
Total assets	$	154,632
Liabilities
Current liabilities:
Accounts payable	$	1,781
Accrued personnel-related expenses		1,529
Other accrued liabilities		5,824
Total current liabilities		9,134
Lease liabilities, long-term		3,299
Total liabilities	$	12,433

As a result of the consolidation, we recognized a non-controlling interest of $38.5 million as of February 17, 2022.

Pro Forma Information

	Three Months Ended March 31,
(In thousands)	2022		2021
Revenue	$	90,059	$	85,518
Net income	$	38,027	$	110,350
Net income attributable to Innoviva stockholders	$	19,033	$	99,067