Innoviva is buying back GlaxoSmithKline’s entire stake in the company, a total of 32 million shares (~ 32% of company). Innoviva (formerly Theravance, Inc.), was spun off from Theravance in 2013 to manage the royalties from dry powder inhalers that Theravance developed in partnership with GSK, including Relvar/Breo Ellipta, Anoro Ellipta, and Trelegy Ellipta. GSK will continue to pay royalties to Innoviva on those DPIs and any future products that come out of the collaboration. According to GSK, 2020 sales of Relvar/Breo Ellipta were £1.1 billion; Anoro Ellipta sales were £547 million; and Trelegy Ellipta sales were £819 million.
Innoviva CEO Pavel Raifeld commented, “We view the buyback as a compelling and highly accretive transaction demonstrating our ability to act strategically and opportunistically at the same time. We believe that it materially accelerates the delivery of our strategy, while also meaningfully improving our shares’ long-term trading dynamics with an aligned shareholder base. We remain focused on, and strongly positioned for, continued significant value creation for the benefit of all shareholders.”
Raifeld added, “GSK was our largest shareholder for many years and remains a key commercial partner. We are confident in the collaboration products’ excellent commercial prospects, especially given strong recent performance in the face of a challenging environment, and look forward to continued work with GSK to address significant unmet medical needs for patients suffering from respiratory diseases.”
Read the Innoviva press release.
Read the GSK press release.
