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Revenue Recognition
 12 Months Ended
Dec. 31, 2024
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:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

Royalties – RELVAR/BREO

 

$

207,925

 

 

$

208,042

 

 

$

215,034

 

Royalties – ANORO

 

 

47,631

 

 

 

44,627

 

 

 

38,405

 

Royalties – TRELEGY(1)

 

 

—

 

 

 

—

 

 

 

72,029

 

Total royalties

 

 

255,556

 

 

 

252,669

 

 

 

325,468

 

Less: amortization of capitalized
   fees paid

 

 

(13,823

)

 

 

(13,823

)

 

 

(13,823

)

Total royalty revenue

 

$

241,733

 

 

$

238,846

 

 

$

311,645

 

 

(1) The year ended December 31, 2022 represents the period from January 1, 2022 to July 20, 2022, the date of the sale of our ownership interest in TRC.

LABA Collaboration

As a result of the launch and approval of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® in the U.S., Japan and Europe, we paid milestone fees to GSK totaling $220.0 million during the year ended December 31, 2014. The milestone fees paid to GSK were recognized as capitalized fees paid, which are being amortized over their estimated useful lives commencing upon the commercial launch of the product. The amortization is recorded as a reduction to the royalties from GSK.

We are entitled to receive annual royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® as follows: 15% on the first $3.0 billion of annual global net sales and 5% for all annual global net sales above $3.0 billion. Sales of single‑agent LABA medicines and combination medicines would be combined for the purposes of this royalty calculation. For other products combined with a LABA from the LABA Collaboration, such as ANORO® ELLIPTA®, royalties are upward tiering and range from 6.5% to 10%.

We are also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to TRC in connection with the Spin-Off, including TRELEGY® ELLIPTA® through July 20, 2022, which royalties were upward tiering and ranged from 6.5% to 10%.

Net Product Sales

Total net product sales was as follows:

 

 

 

Year Ended December 31,

 

(In thousands)

 

2024

 

 

2023

 

 

2022

 

GIAPREZA®

 

$

55,037

 

 

$

41,294

 

 

$

14,214

 

XERAVA®

 

 

21,385

 

 

 

17,320

 

 

 

5,480

 

XACDURO®

 

 

21,070

 

 

 

2,003

 

 

 

—

 

    Total net product sales

 

$

97,492

 

 

$

60,617

 

 

$

19,694

 

 

We derived our net product sales:

•
approximately 83% from customers located in the U.S. and 17% from the rest of the world for the year ended December 31, 2024;
•
approximately 91% from customers located in the U.S. and 9% from the rest of the world for the year ended December 31, 2023; and,
•
approximately 96% from customers located in the U.S. and 4% from the rest of the world from the date of acquisition of La Jolla, which occurred on August 22, 2022, to December 31, 2022.

 

License and Other Revenue

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