Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

Net Revenue from Collaboration Arrangement

On July 13, 2022, Innoviva’s wholly-owned subsidiary, Innoviva TRC Holdings, LLC (“ITH”) entered into an equity purchase agreement (“TRC Equity Purchase Agreement”) with Royalty Pharma Investments 2019 ICAV (“Royalty Pharma”) to sell our ownership interest in Theravance Respiratory Company, LLC (“TRC”). As a result of the sale of our ownership interest in TRC, which was consummated on July 20, 2022, we are no longer entitled to receive 15% of royalty payments made by GSK stemming from sales of TRELEGY® ELLIPTA®. We retained our royalty rights with respect to RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®.

Net revenue recognized under our GSK Agreements was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2022			2021			2022			2021
Royalties    - RELVAR/BREO	$	55,663		$	54,092		$	170,753		$	176,398
Royalties    - ANORO		9,943			11,641			28,015			34,101
Royalties    - TRELEGY		—			35,585			72,029			84,055
Total royalties from a related party		65,606			101,318			270,797			294,554
Less: amortization of capitalized fees    paid to a related party		(3,456	)		(3,456	)		(10,368	)		(10,368	)
Royalty revenue from GSK	$	62,150		$	97,862		$	260,429		$	284,186

Transactions with GSK were considered related party transactions up until May 2021, when we completed the share repurchase agreement with GSK to buy back all of its shares of common stock in Innoviva. GSK is no longer considered a related party after the completion of the share repurchase.

Net Product Sales

Our net product sales of $5.1 million, consisting of net sales of GIAPREZA® and XERAVA® for $3.8 million and $1.3 million, respectively, were recognized from the date of our acquisition of La Jolla, which occurred on August 22, 2022, to September 30, 2022.