Innoviva, Inc. Revenue Disclosure
3. REVENUE RECOGNITION
Net Revenue from Collaboration Arrangement
We are entitled to receive royalties from GSK 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) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Royalties – RELVAR/BREO |
|
$ |
204,021 |
|
|
$ |
207,925 |
|
|
$ |
208,042 |
|
Royalties – ANORO |
|
|
46,281 |
|
|
|
47,631 |
|
|
|
44,627 |
|
Total royalties |
|
|
250,302 |
|
|
|
255,556 |
|
|
|
252,669 |
|
Less: amortization of capitalized |
|
|
(13,823 |
) |
|
|
(13,823 |
) |
|
|
(13,823 |
) |
Total royalty revenue |
|
$ |
236,479 |
|
|
$ |
241,733 |
|
|
$ |
238,846 |
|
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%.
Net Product Sales
Total net product sales were as follows:
|
|
Year Ended December 31, |
|
|||||||||
(In thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
GIAPREZA® |
|
$ |
73,611 |
|
|
$ |
55,037 |
|
|
$ |
41,294 |
|
XACDURO® |
|
|
74,393 |
|
|
|
21,070 |
|
|
|
2,003 |
|
XERAVA® |
|
|
23,516 |
|
|
|
21,385 |
|
|
|
17,320 |
|
ZEVTERA® |
|
|
610 |
|
|
|
— |
|
|
|
— |
|
Total net product sales |
|
$ |
172,130 |
|
|
$ |
97,492 |
|
|
$ |
60,617 |
|
We derived our net product sales:
License and Other Revenue
Refer to the out-license agreement with Zai Lab and Everest and the Grant Agreement with Gates Foundation in Note 4, “License, Collaboration and Other Arrangements”.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 19, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.