(INVA) Innoviva - Overview
Sector: Healthcare | Industry: Biotechnology | Exchange: NASDAQ (USA) | Market Cap: 1.604m USD | Total Return: 19.3% in 12m
Avg Turnover: 14.2M
Qual. Beats: 0
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
Earnings expected to drop: P/E 3.5 → Forward 11.4
Share dilution 35.3% YoY
Tailwinds
No distinct edge detected
Innoviva, Inc. (INVA) is a biopharmaceutical firm focused on managing a diverse portfolio of royalties and commercial-stage anti-infective therapies. The company’s revenue core is built on long-term collaboration agreements, most notably with GlaxoSmithKline (GSK), for respiratory treatments such as RELVAR/BREO ELLIPTA and ANORO ELLIPTA. Beyond royalties, Innoviva has expanded into the hospital and infectious disease markets through the acquisition of assets like XACDURO and ZEVTERA.
The royalty-based business model allows the company to generate high-margin cash flow with lower overhead compared to traditional drug developers that manage internal sales forces. In the pharmaceutical sector, this structure shifts the primary operational and marketing risks to the larger partner while the royalty holder benefits from established global distribution networks. The company also maintains a development pipeline focused on bacteriophages to address the growing clinical challenge of antibiotic-resistant infections.
Detailed performance metrics and historical valuation trends are available on ValueRay for further analysis. Founded in 1996 and headquartered in Burlingame, California, the company transitioned from its original identity as Theravance, Inc. to its current structure in 2016.
- GlaxoSmithKline royalty streams from respiratory portfolio drive core cash flow and valuation
- Expansion into hospital-based anti-infectives shifts revenue mix toward direct product sales
- FDA approvals and commercial uptake of XACDURO impact long-term growth trajectory
- Capital allocation strategy and Sarissa Capital partnership influence shareholder value and buybacks
- Expiration of core respiratory patents poses long-term risk to royalty revenue stability
| Net Income: 504.3m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -5.78 > 1.0 |
| NWC/Revenue: 173.6% < 20% (prev 93.03%; Δ 80.52% < -1%) |
| CFO/TA 0.10 > 3% & CFO 183.6m > Net Income 504.3m |
| Net Debt (-269.2m) to EBITDA (449.0m): -0.60 < 3 |
| Current Ratio: 21.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (84.8m) vs 12m ago 35.31% < -2% |
| Gross Margin: 76.20% > 18% (prev 0.88%; Δ 7.53k% > 0.5%) |
| Asset Turnover: 27.44% > 50% (prev 29.76%; Δ -2.32% > 0%) |
| Interest Coverage Ratio: 63.45 > 6 (EBITDA TTM 449.0m / Interest Expense TTM 6.55m) |
| A: 0.40 (Total Current Assets 772.6m - Total Current Liabilities 36.6m) / Total Assets 1.84b |
| B: 0.25 (Retained Earnings 456.0m / Total Assets 1.84b) |
| C: 0.27 (EBIT TTM 415.6m / Avg Total Assets 1.55b) |
| D: 0.92 (Book Value of Equity 456.7m / Total Liabilities 494.9m) |
| Altman-Z'' = 6.21 = AAA |
| DSRI: 1.05 (Receivables 92.6m/77.9m, Revenue 424.1m/373.3m) |
| GMI: 1.16 (GM 76.20% / 88.11%) |
| AQI: 1.07 (AQ_t 0.57 / AQ_t-1 0.53) |
| SGI: 1.14 (Revenue 424.1m / 373.3m) |
| TATA: 0.17 (NI 504.3m - CFO 183.6m) / TA 1.84b) |
| Beneish M = -2.53 (Cap -4..+1) = A |
As of May 24, 2026, the stock is trading at USD 22.20 with a total of 803,331 shares traded.
Over the past week, the price has changed by +2.23%,
over one month by -4.43%,
over three months by -4.06% and
over the past year by +19.34%.
Innoviva has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy INVA.
- StrongBuy: 0
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 35.5 | 59.9% |
P/E Forward = 11.3507
P/S = 3.8125
P/B = 1.2086
P/EG = 0.3244
Revenue TTM = 424.1m USD
EBIT TTM = 415.6m USD
EBITDA TTM = 449.0m USD
Long Term Debt = 258.1m USD (from longTermDebt, last quarter)
Short Term Debt = 5.34m USD (from shortTermDebt, last quarter)
Debt = 342.7m USD (from shortLongTermDebtTotal, last quarter) + Leases 11.3m
Net Debt = -269.2m USD (calculated: Debt 342.7m - CCE 611.9m)
Enterprise Value = 1.33b USD (1.60b + Debt 342.7m - CCE 611.9m)
Interest Coverage Ratio = 63.45 (Ebit TTM 415.6m / Interest Expense TTM 6.55m)
EV/FCF = 7.38x (Enterprise Value 1.33b / FCF TTM 180.9m)
FCF Yield = 13.55% (FCF TTM 180.9m / Enterprise Value 1.33b)
FCF Margin = 42.64% (FCF TTM 180.9m / Revenue TTM 424.1m)
Net Margin = 118.9% (Net Income TTM 504.3m / Revenue TTM 424.1m)
Gross Margin = 76.20% ((Revenue TTM 424.1m - Cost of Revenue TTM 101.0m) / Revenue TTM)
Gross Margin QoQ = 77.39% (prev 64.05%)
Tobins Q-Ratio = 0.73 (Enterprise Value 1.33b / Total Assets 1.84b)
Interest Expense / Debt = 1.91% (Interest Expense 6.55m / Debt 342.7m)
Taxrate = 20.45% (48.0m / 234.6m)
NOPAT = 330.6m (EBIT 415.6m * (1 - 20.45%))
Current Ratio = 21.13 (Total Current Assets 772.6m / Total Current Liabilities 36.6m)
Debt / Equity = 0.26 (Debt 342.7m / totalStockholderEquity, last quarter 1.34b)
Debt / EBITDA = -0.60 (Net Debt -269.2m / EBITDA 449.0m)
Debt / FCF = -1.49 (Net Debt -269.2m / FCF TTM 180.9m)
Total Stockholder Equity = 1.06b (last 4 quarters mean from totalStockholderEquity)
RoA = 32.63% (Net Income 504.3m / Total Assets 1.84b)
RoE = 47.59% (Net Income TTM 504.3m / Total Stockholder Equity 1.06b)
RoCE = 31.53% (EBIT 415.6m / Capital Employed (Equity 1.06b + L.T.Debt 258.1m))
RoIC = 27.70% (NOPAT 330.6m / Invested Capital 1.19b)
WACC = 5.67% (E(1.60b)/V(1.95b) * Re(6.56%) + D(342.7m)/V(1.95b) * Rd(1.91%) * (1-Tc(0.20)))
Discount Rate = 6.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 24.44 | Cagr: -0.08%
[DCF] Terminal Value 74.32% ; FCFF base≈186.9m ; Y1≈175.5m ; Y5≈162.6m
[DCF] Fair Price = 38.43 (EV 2.57b - Net Debt -269.2m = Equity 2.84b / Shares 73.8m; r=8.35% [WACC [floored]]; 5y FCF grow -7.72% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.07 | # QB: 0
Revenue Correlation: 98.70 | Revenue CAGR: 15.26% | SUE: -0.13 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.50 | Chg30d=+0.00% | Revisions=+0% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.46 | Chg30d=+0.00% | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=1.91 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+1.9% | GrowthRev=+7.1%
EPS next Year (2027-12-31): EPS=2.21 | Chg30d=-3.28% | Revisions=-33% | GrowthEPS=+15.7% | GrowthRev=+12.5%