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what it is
Innoviva collects royalties from respiratory drugs and is betting on 1 late-stage antibiotic.
how it gets paid
Last year Innoviva made $411M in revenue.
why it's growing
Revenue grew 14.7% last year. Revenue was up 175% vs. prior year. EPS was $1.35.
what just happened
Revenue hit $297M, and gross margin held at 78.2%.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
30/100 earnings predictability — expect surprises
16.6x trailing p/e — the market's not buying it — or you found a deal
3.6% return on capital — nothing to write home about
$0.36 fy2024 eps est
xvary composite: 58/100 — below average
What they do
Innoviva collects royalties from respiratory drugs and is betting on 1 late-stage antibiotic.
Glaxo pays the royalties, not you. RELVAR/BREO, ANORO, and 15% of future TRELEGY payments feed a $411M revenue base. That is how 127 employees support a 39.8% operating margin.
How they make money
$411M
annual revenue · their business grew +14.7% last year
total revenue
$411M
+14.7%
The products that matter
collects respiratory drug royalties
Respiratory Royalty Portfolio
$411M · 100% of current revenue shown here
it's the cash engine. this portfolio generated the full $411M revenue base last year, which is why the rest of the strategy can exist at all.
cash source
phase 3 antibiotic candidate
Zoliflodacin
pre-revenue today · data expected in 2026
this asset brings the biotech upside. it has no revenue in the current $411M base, but management is using that royalty cash to fund it ahead of top-line data in 2026.
binary catalyst
capital deployment and portfolio building
Healthcare Investments
3.6% return on capital
this is where the bull and bear cases separate. if management can turn royalty cash into better than a 3.6% return on capital, the business gets more interesting fast.
execution test
Key numbers
$411M
annual revenue
That is the whole cash base. Lose 10%, and you are down about $41M.
39.8%
operating margin
For every $1 of revenue, about $0.40 stayed as operating profit.
$258M
long-term debt
That is 14% of capital, so the balance sheet has room, but not swagger.
3.6%
roic
You get $3.60 back for every $100 of capital. That is the weak part of the story.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $258M (14% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for INVA right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $297M, and gross margin held at 78.2%.
Revenue was up 175% vs. prior year. EPS was $1.35, up 25% vs. prior year.
$297M
revenue
$1.35
eps
78.2%
gross margin
the number that mattered
The $297M quarter mattered because it was 175% above last year. That is real growth, not spreadsheet cosplay.
source: company earnings report, 2026
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What could go wrong
the #1 risk is respiratory royalty erosion before a replacement asset arrives.
med
finite royalty stream
The current revenue base is $411M, and this snapshot effectively ties that to respiratory royalties. If those cash flows decline faster than expected, the funding source for everything else gets smaller at the exact moment the company needs it most.
impact: this risk touches essentially the full revenue engine shown on this page.
med
Zoliflodacin binary risk
Zoliflodacin is the lead upside asset, with top-line data expected in 2026. If that program disappoints, you are left with the existing royalty model and a much thinner case for transformation.
impact: the 2026 catalyst matters because the current $411M revenue base does not yet include a second growth engine.
med
capital allocation stays mediocre
A 78.2% gross margin business producing only 3.6% return on capital is telling you something. The message is that collecting cash has been easier than turning it into high-return assets.
impact: even if royalties hold up, weak redeployment can keep the stock looking cheap for the wrong reason.
a lot of the thesis rests on a $411M royalty stream funding the future. if the stream fades or the reinvestment misses, the valuation can stay stuck.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
Zoliflodacin phase 3 data in 2026
This is the cleanest test of whether INVA can become more than a royalty collector. Success gives the strategy credibility. Failure sends you back to the cash stream.
earnings
post-gain margin normalization
After a Q4 operating margin of 65.9%, the next reports need to show what earnings look like without the one-time help.
capital allocation
return on capital moving off 3.6%
You want evidence that royalty cash is being turned into something better than a placeholder portfolio.
buyback watch
how the $125M repurchase program gets used
A buyback can help at the margin, but it does not solve the bigger question of replacing a finite royalty stream.
Analyst rankings
earnings predictability
30 / 100
Low predictability means reported results can swing more than the business quality suggests. in human-speak: you should expect messy quarters.
balance sheet grade
B++
Above average balance sheet quality. good enough to support the story, not strong enough to erase execution risk.
risk rank
3
This sits around the middle of the market on safety. you are not buying a disaster, but you are not buying a sleep-well compounder either.
source: institutional data
Institutional activity
institutional ownership data for INVA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$23
current price
n/a
target midpoint · n/a from current
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