Innoviva, Inc. · NASDAQ:INVA
Innoviva — Proxy Contest (March 2017)
28 slides from Innoviva's proxy contest presentation, Mar 7, 2017
Slide 1: Forward-looking statements
This presentation contains certain “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans, objectives and future events. Innoviva intends such forward-looking statements to be cov
Slide 2: Company Mission & Investment Highlights
Company Mission & Investment Highlights 3 ©2017 INNOVIVA * Non-GAAP Financial Measure, please refer to Appendix for reconciliation to GAAP Measures Platform for growth anchored by a major product portfolio Existing portfolio partnered with GSK addresses a $20+ billion market in respiratory treatment
Slide 3: Strong Recent Financial Performance
Total capital return since Q1 2015: $210M Repurchased 9.9 million shares since Q4 2015 Reduced total shares outstanding by more than 8% Initiated debt reduction in Q2 2016 2017 capital return plan to focus on debt reduction 4 ©2017 INNOVIVA Strong growth in profits / operating cash Substantial capit
Slide 4: Steady Growth in Royalties Earned
Steady Growth in Royalties Earned RELVAR®/BREO® ELLIPTA® Launched in more than 50 countries 117% YoY growth in royalties earned between 2015 and 2016 5 ©2017 INNOVIVA ANORO® ELLIPTA® Launched in more than 40 countries 132% YoY growth in royalties earned between 2015 and 2016 Long Term Revenues: Trac
Slide 5: BREO ELLIPTA Market Share by Type
BREO® ELLIPTA® Market Share by Type 6 ©2017 INNOVIVA BREO continues to gain ICS/LABA NBRx and TRx share BREO® ELLIPTA® FDA Approved for COPD and Asthma in adults and ANORO® ELLIPTA® FDA Approved for COPD; BREO® ELLIPTA® and ANORO® ELLIPTA® are not indicated for the relief of acute bronchospasm. Full
Slide 6: ANORO ELLIPTA Market Share by Type
ANORO continues to gain MB NBRx and TRx share ANORO® ELLIPTA® Market Share by Type 7 ©2017 INNOVIVA BREO® ELLIPTA® FDA Approved for COPD and Asthma in adults and ANORO® ELLIPTA® FDA Approved for COPD; BREO® ELLIPTA® and ANORO® ELLIPTA® are not indicated for the relief of acute bronchospasm. Full U.S
Slide 7: Well Capitalized Company
8 ©2017 INNOVIVA LTM Adjusted EBITDA* $M 134 LTM Capital Return to Investors $M 118 Total Debt (Q4 2016) $M 7281 Total Cash (Q4 2016) $M 150 Net Debt / Adjusted EBITDA* x times 4.3x / 1.1x 2 Market Cap (March 1, 2017)3 $B 1.3 Well Capitalized Company Low Effective Leverage After Considering Non-Reco
Slide 8: Significant Future Growth Opportunity
Significant Future Growth Opportunity 9 ©2017 INNOVIVA Salford Lung Studies Innovative clinical studies designed to evaluate RELVAR® ELLIPTA® when used in patients with asthma in a real world setting, expected 2017 Asthma indication in the U.S. approved by FDA April 30, 2015 Commercial launch in May
Slide 9: Corporate Priorities
Corporate Priorities 10 Highly Focused Strategy Maximizing value of GSK partnered assets Maintaining a low overall cost structure Provide Capital Return to Investors Enhance terminal value and build recurring revenue business 32% quarterly CGR in royalty revenues in last 10 quarters * Non-GAAP Finan
Slide 10: Corporate Priorities
Corporate Priorities * Maximizing value of GSK partnered assets * Maintaining a low overall cost structure * Provide Capital Return to Investors * Enhance terminal value and build recurring revenue business ...and Execution 32% quarterly CGR in royalty revenues in last 10 quarters 29% quarterly CGR
Slide 11: Significant Respiratory Market Opportunity
12 COPD Market Growth Drivers2: Expansion of aging population Patients diagnosed earlier Large, stable Asthma market2 Data from 2014 suggests that across the US, Japan, and EU-5, ~60% of ICS/LABA sales were for use in Asthma BREO® and ANORO® Medicare Part-D and commercial U.S. coverage steadily incr
Slide 12: RELVAR/BREO and ANORO ELLIPTA product features
ANORO® RELVAR®/ BREO® First and only once-daily ICS/LABA in the U.S. 24 hours efficacy One inhalation once daily Easy-to-use ELLIPTA® inhaler In the U.S., indicated for COPD and for asthma in adults Outside of the U.S., indicated for asthma and COPD 13 ©2017 INNOVIVA ANORO® ELLIPTA® RELVAR®/ BREO® E
Slide 13: GSK Innoviva Royalty Arrangements
GSK Innoviva Royalty Arrangements 14 ©2017 INNOVIVA ANORO® ELLIPTA® and Closed Triple GSK pays upward tiering of 6.5% to 10% royalties on annual global net sales1 ANORO® Commercialized US market: Q2 2014 Europe: Initiated Q2 2014 Japan: Q3 2014 Innoviva retains a 15% economic interest in future paym
Slide 14: ELLIPTA - A Familiar and Easy To Use Inhaler
ELLIPTA® - A Familiar and Easy To Use Inhaler “Single-Step Dose Activation” Open Breathe in Close Simple, large font dose counter Same familiar inhaler for all patients 15 ©2017 INNOVIVA BREO® ELLIPTA® FDA Approved for COPD and Asthma in adults and ANORO® ELLIPTA® FDA Approved for COPD; BREO® ELLIPT
Slide 15: SALFORD Lung Study (SLS)
SALFORD Lung Study (SLS) SALFORD Lung Study: Phase IIIb multi-centre, open label randomized controlled trial (RCT) Compared the effectiveness and safety profile of FF/VI 100/25mcg with existing COPD usual care 2802 patients randomised 1:1 to receive FF/VI 100/25mcg or continue to receive usual care
Slide 16: Future Management of COPD
Future Management of COPD 17 COPD composed of diverse pool of patients with varying symptoms and severity RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® products aligned with evolving approach to management of COPD Treatments for All Stages of COPD ©2017 INNOVIVA BREO® ELLIPTA® FDA Approved for COPD and
Slide 17: Corporate Governance With Our Strategic Mission
©2017 INNOVIVA Aligning Corporate Governance With Our Strategic Mission
Slide 18: Innoviva's Engaged, Experienced Board of Directors
19 Innoviva’s Engaged, Experienced Board of Directors ©2017 INNOVIVA A Strong Board with the Experience, Diversity and Fresh Perspectives to Guide Innoviva Critical Expertise Pharmaceuticals leadership Significant financial experience Sophisticated capital markets understanding Public company execut
Slide 19: Independent and Highly Qualified Board
20 Independent and Highly Qualified Board ©2017 INNOVIVA Director Financial Services Experience Public Company CEO/CFO Experience Financial Expertise Healthcare/ Pharmaceuticals Experience Year Added to the Board William H. Waltrip 2000 James L. Tyree 2014 Michael W. Aguiar 2014 Barbara Duncan 2016
Slide 20: Governance Practices
21 Governance Practices ©2017 INNOVIVA Our Objectives Highly-qualified Board of Directors Independent oversight Active shareholder engagement Emphasis on shareholder rights Compensation policies and practices aligned with shareholder interests Board Independence 6 of 7 Directors are independent Inde
Slide 21: Compensation Practices and Policies
22 Compensation Practices and Policies ©2017 INNOVIVA Compensation Highlights 100% of the compensation committee members are independent Recent implementation of performance-based RSA program Equity plans expressly forbid option repricing without shareholder approval Active equity plans expressly fo
Slide 22: RELVAR/BREO ELLIPTA Important Safety Information (U.S.)
RELVAR®/BREO® ELLIPTA® Important Safety Information (U.S.) The following ISI is based on the Highlights section of the US Prescribing Information for Breo Ellipta Please consult the full Prescribing Information for all the labelled safety information for Breo Ellipta. Long-acting beta2-adrenergic ag
Slide 23: ANORO ELLIPTA Important Safety Information (U.S.)
ANORO® ELLIPTA® Important Safety Information (U.S.) The following Important Safety Information (ISI) is based on the Highlights section of the Prescribing Information for Anoro Ellipta. Please consult the full Prescribing Information for all the labeled safety information for Anoro Ellipta. Long-act
Slide 24: Non-GAAP financial measures
To supplement the consolidated financial statements presented in accordance with generally accepted accounting principles in the United States, or GAAP, Innoviva uses the non-GAAP financial measures of adjusted EBITDA and adjusted earnings per share. Generally, a non-GAAP financial measure is a nume
Slide 25: Reconciliation of Non-GAAP Financial Measures to GAAP
GAAP net income Reconciliation of Non-GAAP Financial Measures to GAAP 26 ©2017 INNOVIVA Reconciliation of GAAP to Non-GAAP Operating Results (in thousands) Reconciliation of GAAP to Non-GAAP Operating Results (in thousands, except per share data) Eight Quarters Ended Dec. 31, 2016 Twelve Months Ende
Slide 26: Participants in the solicitation of proxies
Innoviva, its directors and certain of its executive officers and employees may be deemed to be participants in the solicitation of proxies from stockholders in connection with Innoviva’s 2017 annual meeting of stockholders (the “2017 Annual Meeting”). On March 7, 2017, Innoviva filed a preliminary
Slide 27: 14a-12 Legend
14a-12 LEGEND Innoviva, its directors and certain of ts executive officers and employees may be deemed fo be participants in the solicitation of proxies from stockholders in connection with innoviva's 2017 annual meeting of stockholders (Ihe "2017 Annual Meeting”). On March 7, 2017, Innoviva filed a
Slide 28: INVA.COM
INVA.COM