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Consolidated Entities and Acquisitions (Tables)
9 Months Ended
Sep. 30, 2022
Consolidated Entities  
Pro Forma Information

The following table presents certain unaudited pro-forma financial information for the three and nine months ended September 30, 2022 and 2021 as if the consolidation of Entasis and La Jolla occurred on January 1, 2021. The unaudited pro forma financial information is presented for informational purposes only, and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place on January 1, 2022, or of results that may occur in the future. The unaudited pro forma financial information combines the historical results of the Entasis and La Jolla with the Company’s consolidated historical results and includes certain adjustments including, but not limited to, fair value adjustments to equity investments in Entasis’ common stock and warrants, fair value adjustments to inventory, amortization of intangible assets, and interest expense on deferred royalty obligations and acquisition-related costs.

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue

 

$

72,830

 

 

$

111,176

 

 

$

292,077

 

 

$

347,696

 

Net income

 

$

221,473

 

 

$

45,109

 

 

$

266,797

 

 

$

183,252

 

Net income attributable to Innoviva stockholders

 

$

272,797

 

 

$

19,892

 

 

$

276,200

 

 

$

129,803

 

 

Theravance Respiratory Company, LLC  
Consolidated Entities  
Schedule of Balance Sheets and Income Statements of VIE

The summarized financial information of TRC as of December 31, 2021 and for the relevant periods through the sale date in 2022 are presented as follows:

Balance sheet

 

 

 

December 31,

 

(In thousands)

 

2021

 

Assets

 

 

 

Cash and cash equivalents

 

$

50,713

 

Receivables from collaboration arrangement

 

 

42,492

 

Prepaid expenses and other current assets

 

 

71

 

Equity and long-term investments

 

 

37,695

 

Total assets

 

$

130,971

 

 

 

 

 

Liabilities and LLC Members’ Equity

 

 

 

Current liabilities

 

$

252

 

LLC members’ equity

 

 

130,719

 

Total liabilities and LLC members’ equity

 

$

130,971

 

 

Income statements

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

(In thousands)

 

2022 (1)

 

 

2021

 

 

2022 (2)

 

 

2021

 

Royalty revenue from a related party

 

$

 

 

$

35,585

 

 

$

72,029

 

 

$

84,055

 

Operating expenses

 

 

(5

)

 

 

194

 

 

 

332

 

 

 

3,811

 

Income from operations

 

 

5

 

 

 

35,391

 

 

 

71,697

 

 

 

80,244

 

Other income, net

 

 

 

 

 

 

 

 

10

 

 

 

 

Realized loss

 

 

(39,386

)

 

 

 

 

 

(39,386

)

 

 

 

Income tax expense, net

 

 

 

 

 

 

 

 

1

 

 

 

 

Changes in fair values of equity and long-term
   investments

 

 

 

 

 

148

 

 

 

(8,884

)

 

 

(589

)

Net income (loss)

 

$

(39,381

)

 

$

35,539

 

 

$

23,438

 

 

$

79,655

 

 

(1)
Three months ended September 30, 2022 represents the period from July 1, 2022 to July 20, 2022, the date of the sale of our ownership interest in TRC.
(2)
Nine months ended September 30, 2022 represents the period from January 1, 2022 to July 20, 2022, the date of the sale of our ownership interest in TRC.
Entasis Therapeutics Holdings Inc  
Consolidated Entities  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table represents the adjusted fair values of the assets acquired and liabilities assumed by us in the transaction:

 

(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

 

 

959

 

Goodwill

 

 

3,284

 

Intangible assets

 

 

107,500

 

Other assets

 

 

302

 

Total assets acquired

 

$

142,813

 

 

 

 

 

Accounts payable

 

$

1,583

 

Accrued personnel-related expenses

 

 

1,057

 

Other current liabilities

 

 

5,097

 

Deferred tax liabilities

 

 

360

 

Total liabilities assumed

 

$

8,097

 

 

 

 

 

Total assets acquired, net

 

$

134,716

 

La Jolla Pharmaceutical Company  
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 acquisition:

 

(In thousands)

 

August 22, 2022

 

Cash and cash equivalents

 

$

47,415

 

Short-term marketable securities

 

 

471

 

Accounts receivable

 

 

5,876

 

Inventory

 

 

73,900

 

Prepaid expenses

 

 

1,261

 

Other current assets

 

 

907

 

Property and equipment, net

 

 

13

 

Right-of-use assets

 

 

226

 

Goodwill

 

 

12,711

 

Intangible assets

 

 

152,500

 

Other assets

 

 

710

 

Total assets acquired

 

$

295,990

 

 

 

 

 

Accounts payable

 

$

1,237

 

Deferred revenue, current

 

 

2,849

 

Other accrued liabilities

 

 

11,062

 

Other long-term liabilities

 

 

74,283

 

Total liabilities assumed

 

$

89,431

 

 

 

 

 

Total assets acquired, net

 

$

206,559

 

 

The goodwill arising from the acquisition of La Jolla is primarily attributable to La Jolla’s assembled workforce and the value associated with leveraging the workforce to develop and commercialize new drug products in the future and growing our business more efficiently. The goodwill from this acquisition is not expected to be deductible for tax purposes.

Refer to Note 7, “Goodwill and Intangible Assets” for more discussion on the intangible assets recognized as part of this acquisition.

Pro Forma Financial Information