Innoviva has signed an agreement for the sale of its 15% economic stake in Theravance Respiratory Company (TRC) to Royalty Pharma for nearly $282m in upfront cash payments and a potential contingent sales-based milestone payment of $50m.
TRC receives royalties generating from sales of TRELEGY ELLIPTA (the combination FF/UMEC/VI).
According to the agreement, TRC also transferred all of its ownership stakes and investments in InCarda Therapeutics, ImaginAb, Gate Neurosciences, and Nanolive to Innoviva .
With respect to its respiratory assets ANORO ELLIPTA and RELVAR/BREO ELLIPTA, Innoviva retained its royalty rights.
The sale is expected to close this month.
Innoviva CEO Pavel Raifeld said: “We are very pleased to have entered into this agreement with Royalty Pharma, a market leader in healthcare royalty acquisitions.”
“This transaction allows us to capture an attractive valuation for our share of TRELEGY ELLIPTA economics, enhances our cash position at a time of meaningful market dislocations, and demonstrates our continued commitment to leaving no stone unturned in our efforts to maximise shareholder value.
“We look forward to continuing our long-standing collaboration with GSK for RELVAR/BREO ELLIPTA and ANORO ELLIPTA.”
Prior to this development, Innoviva signed a definitive merger agreement to acquire all of the outstanding shares of La Jolla Pharmaceutical Company for an enterprise value of nearly $149m, through its wholly owned subsidiary.
Concurrently, Theravance Biopharma entered a transaction to sell its economic interest of 85% in TRC to Royalty Pharma.
Innoviva , Theravance Biopharma and GSK signed a customary release of claims with regard to conduct before the closing.