Stocks/INVA

INVA

Innoviva, Inc.
Healthcare·Biotechnology
$21.42
$1.6B market cap
Claude Rating
5/10HOLD
Revenue
$424.1M
Free Cash Flow
$169.0M
Rev Growth
+10.6%
FCF Margin
39.9%
P/FCF
9.3x
EV/FCF
7.7x
Fwd EV/EBITDA
6.9x
Fair Value
$21.00
Upside
-2.0%

Innoviva, Inc. engages in the development and commercialization of pharmaceuticals in the United States and internationally. Its products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, and VI; and TRELEGY ELLIPTA, a once-daily combination medicine consis

2-Year Price History

$22.46+39.2%
$16$18$20$22$24volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q4140.063.0--35.0--50.4-1.4926.5----------
Est2027-Q3125.053.8--28.8--42.5-1.3876.1----------
Est2027-Q2120.050.4--26.4--39.6-1.2833.6----------
Est2027-Q1108.042.1--20.5--32.4-1.1794.0----------
Est2026-Q4130.057.2--31.2--45.5-1.3761.6----------
Est2026-Q3118.049.6--26.0--38.9-1.2716.1----------
Est2026-Q2112.044.8--22.4--35.8-1.1677.2----------
Est2026-Q198.037.2--17.6--29.4-1.0641.3----------
Act2026-Q198.048.238.2186.635.332.3-0.5611.9331.484.97.5%8.9x3.3x
Act2025-Q4118.1208.539.0164.254.553.4-1.1550.90.085.312.2%63.0x1.6x
Act2025-Q3107.8108.534.689.949.739.2-1.1533.1323.285.010.6%27.0x5.1x
Act2025-Q2100.383.8-48.863.744.144.1-0.0497.7450.984.5-23.1%18.0x9.7x
Act2025-Q188.6-27.4-41.4-46.648.648.6-0.0446.9451.362.7-21.3%-5.8x262.9x
Act2024-Q491.836.043.120.359.255.2-4.0412.5451.184.218.7%7.6x14.1x
Act2024-Q389.519.249.81.248.735.4-0.3260.6450.963.021.7%3.3x9.7x
Act2024-Q2103.4-23.654.7-34.743.743.7-0.0217.0450.762.526.8%-4.1x9.1x
Act2024-Q177.557.425.836.537.137.1-0.0178.4449.384.58.0%9.8x7.0x
Act2023-Q485.873.737.561.533.333.1-0.2193.5449.185.018.0%12.4x6.5x
Act2023-Q367.324.524.382.143.930.6-0.2180.0448.986.210.3%5.6x8.3x
Act2023-Q281.033.518.51.338.238.2-0.0173.0448.365.57.7%7.7x7.7x
Act2023-Q176.433.721.134.925.725.7-0.0144.1448.189.88.1%7.6x9.8x
Act2022-Q465.840.930.9-68.38.98.9-0.0291.1544.169.713.0%10.1x7.9x
Act2022-Q367.323.912.3265.515.712.9-0.0301.1543.795.83.5%4.7x--
Act2022-Q2108.224.282.60.979.079.0-0.0283.6543.095.749.4%6.6x--
Act2022-Q190.147.777.715.898.198.1-0.0216.8542.793.742.4%15.9x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
202213.2541.3%1377.9×5.4×3.8×2.5×
202316.04-6.3%53.3%1656.5×8.5×4.6×2.7×
202417.35+16.6%24.6%8914.1×7.3×52.1×3.4×
202519.99+14.5%90.0%3731.6×3.2×4.2×2.8×
TTM21.42+13.6%105.8%4490.0×0.0×0.0×0.0×
2026E21.42+8.0%0.4%20.0×0.0×0.0×0.0×
2027E21.42+7.6%0.4%20.0×0.0×0.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude5/10HOLDFV: $21.00

Innoviva is a royalty-funded holding company attempting a high-risk pivot into specialty therapeutics and biotech venture investments. The GSK royalty stream is a genuine cash cow generating ~$220M/year in high-margin revenue, but it faces a hard expiration in 2029-2030. The IST product portfolio (Xacduro, Zevtera, upcoming Nuzolvence) is growing but operates in the notoriously difficult anti-infectives market with slow hospital adoption curves. Recent EPS beats are misleading — driven by non-recurring investment gains, not operational improvement. The 34% share dilution from convertible note conversion, proposed 10% equity incentive plan, aggressive VIE structures hiding losses at Armata, and Goldman's Sell rating with a $17 target all suggest the current ~$24 price may already embed optimistic assumptions. At 5x EV/FCF the stock looks optically cheap, but this is appropriate for a declining royalty stream with uncertain replacement revenues. The 4.2% dividend provides a floor, but the business model transition carries substantial execution risk.

Catalyst Nuzolvence FDA approval and commercial launch in H2 2026 could demonstrate IST platform viability and accelerate product revenue growth, potentially re-rating the stock if uptake exceeds expectations.
Risk GSK royalty patent cliff (2029-2030) represents ~50% of revenue; if IST product revenue fails to scale sufficiently to replace it, the company faces a structural revenue decline that would compress the multiple further and potentially jeopardize the dividend.
Trend
IMPROVING
Mgmt
4/10
Quarter
6/10
Exp. Move
-3.0%

Valuation & Metrics

Market Stats

Price$21.42
Market Cap$1.6B
Enterprise Value$1.3B
P/S Ratio3.7x
P/FCF9.3x
EV/FCF7.7x
FCF Margin (TTM)39.9%
FCF Yield10.7%
Dividend Yield (TTM)4.7%
Annual Dilution35.3%
CurrencyUSD

TTM Financial Snapshot

Revenue$424.1M
Net Income$504.3M
Free Cash Flow$169.0M

Revenue Growth (YoY)+10.6%
EBITDA Margin105.9%
Net Margin118.9%
FCF Margin39.9%
CapEx % of Revenue0.6%
SBC % of Revenue5.0%
ROIC1.8%
WC Change % Rev-2.4%
Interest Coverage68.5x

DCF Fair Value Estimate

$19.56
-8.7% upside
Fair Enterprise Value$1.4B
− Net Debt$-281M
= Fair Equity$1.7B
Revenue Growth7.6% → 1.0%
FCF Margin39.9% → 25.0%
Discount Rate15.0%
Terminal EV/FCF8.0x

Forward Outlook & Risk

Short Interest

Short % of Float9.1%
Short Shares6.3M
Days to Cover11.4
Change (vs Prior)-6.6%
Short % Float History
9.10%-3.50pp
8.0%10.0%12.0%14.0%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)71%
Put IV (ATM)32%
ATM Spread20.9%
Call $OI (near money)$105K
Put $OI (near money)$7K
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$22.5
Major Expirations3
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$12.50$7.50/$12.100--/$3.800
$15.00$5.00/$9.700--/$1.850
$17.50$2.50/$7.300--/$4.100
$20.00$0.50/$5.200--/$0.902
$22.50$0.20/$4.900$0.45/$1.700
$25.00$0.10/$0.40140$0.10/$4.900
$30.00--/$1.353$5.40/$10.000
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth+8.0%
Forward FCF Margin32.7%
Forward EBITDA Margin41.2%
Forward P/FCF10.6x
Forward EV/FCF8.7x
Forward Int. Coverage18.5x
Model Risk Score7/10
Bankruptcy Odds2%
Est. Borrow Rate7.5%
Terminal EV/FCF8.0x
LT Growth1.0%
LT FCF Margin25.0%

Employees

Headcount127
Revenue / Employee$3,339,543
Gross Profit / Employee$2,544,583
2021: 5 → 2023: 112 → 2024: 127 → 2025: 159 (138% CAGR)

Institutional Ownership

Headline & net flow

NET BUYING

In Q1 2026 so far (quarter still filing), institutions are net buyers — bought 10.9% of float, sold 7.6%. 1 filer moved >1% of shares (0 buying, 1 selling).

Net flow · Q1 2026still filing
+3.3% of float (net)
Bought 10.9% · Sold 7.6%
283 filers reported (last quarter: 281)

Ownership composition

Active
64.8%(+16.7% YoY)
265 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
42.0%(+14.7% YoY)
12 filers
Vanguard, iShares, SPDR
Market makers
0.2%(-0.3% YoY)
5 filers
Citadel, Susquehanna
Insiders
1.5%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
BlackRock, Inc.Passive$263M$19.55+$14.7M+$48.8M-0.2%$5.69T
DIMENSIONAL FUND ADVISORS LPPassive$103M$13.72+$1.8M−$5.2M-0.4%$480.92B
VANGUARD PORTFOLIO MANAGEMENT LLCPassive$98.4M$23.30+$98.4M+$98.4M$1.91T
RENAISSANCE TECHNOLOGIES LLC$94.5M$16.84−$3.6M−$11.7M+1.2%$63.91B
VANGUARD CAPITAL MANAGEMENT LLCPassive$73.2M$23.30+$73.2M+$73.2M$4.04T
STATE STREET CORPPassive$71.3M$17.58+$6.1M+$16.2M-0.2%$2.89T
MILLENNIUM MANAGEMENT LLC$53.1M$17.04+$15.6M+$14.1M-0.5%$127.40B
Sarissa Capital Management LP$49.7M$12.73−$16.0M−$16.0M-4.1%$158M
SYSTEMATIC FINANCIAL MANAGEMENT LP$47.2M$14.21−$2.1M−$1.1M-0.6%$4.33B
GEODE CAPITAL MANAGEMENT, LLCPassive$45.0M$18.21+$4.1M+$11.9M+2.3%$1.61T
AMERICAN CENTURY COMPANIES INC$44.5M$17.59−$7.7M+$5.5M+0.7%$193.48B
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$44.0M$18.55−$11.0M+$22.5M+0.1%$184.72B
Boston Partners$40.0M$17.57+$4.0M+$25.5M+0.5%$95.40B
BANK OF AMERICA CORP /DE/$37.7M$18.48+$2.3M+$5.3M-0.1%$1.36T
GOLDMAN SACHS GROUP INC$37.1M$17.81+$11.0M+$5.6M-0.2%$760.93B
MARSHALL WACE, LLP$35.1M$18.21+$2.6M+$31.9M+0.6%$92.71B
TWO SIGMA INVESTMENTS, LP$34.6M$18.85+$15.0M+$19.0M-0.9%$117.03B
MORGAN STANLEY$30.5M$17.37−$2.5M+$5.3M-0.3%$1.65T
CHARLES SCHWAB INVESTMENT MANAGEMENT INC$27.1M$17.08+$3.3M+$12.9M+0.7%$645.81B
ROYCE & ASSOCIATES LP$24.7M$19.39+$3.3M+$23.1M-0.9%$10.09B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BULLISH
Holders
-0.09%
avg per quarter
Holders (ex-self)
-0.14%
excl. this stock
Buyers (this Q)
-0.10%
150 buyers · $0.48B in
Sellers (this Q)
-0.77%
97 sellers · $0.05B out
alpha coverage: 89% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-22.8%
how holders react when this stock falls
On quiet Qs
-16.1%
−10% to +10% baseline
On rallies (+10%+)
-22.4%
how they react when this stock rises
Holders' portfolio flow this Q
+1.7%
inflows — adds are organic
Sellers' portfolio flow this Q
-2.9%
Sellers shed AUM broadly — partly forced.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-6.9%
Holder mid (any stock)
-5.8%
Holder rally (any stock)
-6.4%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

07.3M14.5M21.8M29.1M$11$14$17$20$232021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
Sarissa Capital Management LP2.1MFRANKLIN RESOURCES INC258KRENAISSANCE TECHNOLOGIES LLC4.1MPUTNAM INVESTMENTS LLCWESTFIELD CAPITAL MANAGEMENT CO LPLSV ASSET MANAGEMENT69KBANK OF AMERICA CORP /DE/1.6MPacer Advisors, Inc.MILLENNIUM MANAGEMENT LLC2.3MSYSTEMATIC FINANCIAL MANAGEMENT LP2.0M

Analyst Coverage

Analyst Coverage
Price Targets
Last Quarter (2 analysts)$37.007270.0%
Last Year (6 analysts)$34.506110.0%
Current Price$21.42
Analyst Ratings
5
4
1
Buy: 5Hold: 4Sell: 1Consensus: Buy
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2025 Q391M70M39M$0.46$0.40 – $0.512
2025 Q4103M79M47M$0.55$0.31 – $0.782
2026 Q1102M78M33M$0.39$0.38 – $0.401
2026 Q2111M85M36M$0.42$0.41 – $0.431
2026 Q3113M87M42M$0.50$0.49 – $0.511
2026 Q4119M91M46M$0.54$0.53 – $0.551
2027 Q1123M94M46M$0.55$0.53 – $0.561
2027 Q2134M103M55M$0.65$0.63 – $0.671
2027 Q3133M102M53M$0.62$0.61 – $0.641
2027 Q4139M107M56M$0.66$0.64 – $0.681

Corporate

Executive Compensation (2023-2025)

Direct Pay$17.9M
Incentive & Other$12.5M
Total Compensation$30.4M
% of Revenue2.7%

Order Flow (FINRA, ~3w lag)

20.3%retail+7.9pp
23.5%dark-0.4pp
week of 2026-04-13
10%20%30%40%50%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Product (2026-Q1)
Royalty$55.2M-5%
Product$41.4M+37%
License And Other Revenue$1.5M+167%

Filing Risk Analysis

Filing Risk Scores

Innoviva, Inc.: Investment Vehicle Masked as a Biotech Driven by Level 3 Paper Gains

Overall Risk
6/10
Fraud
3/10
Dilution
4/10
Insolvency
2/10
Earnings Overstated
8/10
Hidden Liabilities
5/10
Legal
2/10
Audit Warnings
4/10
Hidden Upside
6/10
Contextually Acceptable
7/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In early 2026, Innoviva reported record Q4 2025 results with a GAAP EPS of $1.94, significantly beating the $0.34 estimate; however, analysts noted the results were heavily bolstered by a large, non-recurring gain rather than sustainable operational growth. The company also announced the FDA approval of Nuzolvence (zoliflodacin) for gonorrhea, with a commercial launch planned for H2 2026, and is seeking shareholder approval for a new 2026 Equity Incentive Plan that could lead to a 10% share dilution (9 million shares).

🐻 Bear Case

The core bear thesis centers on the 'patent cliff' for Innoviva's primary revenue driver: the respiratory royalty stream from GSK (Breo and Anoro), which begins to face generic erosion and expiration between 2029 and 2030. Bears argue that the company is struggling to replace this high-margin income with its internal specialty therapeutics (IST) platform, which operates in the notoriously difficult and low-margin infectious disease market. Critics point out that recent earnings 'beats' are unsustainable 'paper gains' from its investment portfolio rather than core product performance.

🚩 Red Flags

Short interest has recently climbed to 9.41% of the public float (approx. 6.8 million shares) with a high 10.9 days-to-cover, indicating growing institutional skepticism. Goldman Sachs initiated a 'Sell' rating with a $17.00 price target, citing concerns over earnings quality and long-term royalty decay. Furthermore, the company's recent proxy filing for a 10% dilutive equity plan raises governance concerns regarding capital allocation and shareholder value preservation.

⚔️ Competitive Threats

Innoviva faces intensifying competition in the antibiotic space where high mortality rates for infections like MRSA and the rapid rise of antibiotic resistance limit the market potential and pricing power of its assets like Xacduro and Zevtera. Additionally, as legacy respiratory patents expire, the entry of low-cost generics will directly cannibalize the royalty revenues that currently fund Innoviva's strategic investments.

💬 Customer Sentiment

Sentiment in the critical care and infectious disease community is cautious; while new treatments like Zevtera are welcomed, the high clinical failure rates and strict hospital stewardship protocols for new antibiotics often result in slower-than-expected commercial uptake. Investors have expressed 'mixed' reactions to the IST pivot, with many remaining focused on the eventual loss of the predictable GSK royalty cash flows.