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Revenue Recognition
6 Months Ended
Jun. 30, 2023
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 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 June 30,

 

 

Six Months Ended June 30,

 

(In thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Royalties
   - RELVAR/BREO

 

$

54,454

 

 

$

59,326

 

 

$

105,337

 

 

$

115,090

 

Royalties
   - ANORO

 

 

11,267

 

 

 

9,630

 

 

 

20,698

 

 

 

18,072

 

Royalties
   - TRELEGY

 

 

 

 

 

42,720

 

 

 

 

 

 

72,029

 

Total royalties

 

 

65,721

 

 

 

111,676

 

 

 

126,035

 

 

 

205,191

 

Less: amortization of capitalized fees
   paid

 

 

(3,456

)

 

 

(3,456

)

 

 

(6,912

)

 

 

(6,912

)

Total net royalty revenue

 

$

62,265

 

 

$

108,220

 

 

$

119,123

 

 

$

198,279

 

 

Net Product Sales

Our net product sales were $15.7 million, consisting of net sales of GIAPREZA® and XERAVA® for $11.2 million and $4.5 million, respectively, for the three months ended June 30, 2023. Our net product sales were $27.2 million, consisting of net sales of GIAPREZA® and XERAVA® for $20.2 million and $7.0 million, respectively, for the six months ended June 30, 2023. We derived over 94% and 96% of our net product sales from customers located in the U.S for the three and six months ended June 30, 2023, respectively.

License Revenue

 

Refer to the out-license agreement with Zai Lab and Everest in Note 4, “License and Collaboration Arrangements”.