Innoviva Inc
🔔 Watch stock
Assessment
Our Rating
A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
Why this colour
The operating business clearly works: royalty income without selling costs, a 74.1 percent gross margin, $196.9 million in operating cash flow in 2025 and a balance sheet carrying $603.1 million in cash against $261.0 million in convertible notes — this is not a fragile company. Yet one material operating question remains open, and it is unusually large: the reported result is generated mostly outside the business. In 2025, $161.6 million of $326.9 million in pre-tax income came from fair-value changes; in the first quarter of 2026 it was $191.2 million of $234.6 million, and the driver is Armata — a company that reported a $124.3 million loss on $1.1 million of revenue in the quarter ended December 31, 2025 and whose loans Innoviva itself provides. That is not an existential issue for Innoviva; cash covers the single bond more than twice over. But it makes earning power hard to measure. Hence yellow: demonstrated operating strength, unprovable repeatability of the reported profit. The decision is yours.
What the thesis turns on
Assessment: Opportunities & Risks
Innoviva is two companies in one shell: a highly profitable royalty and medicines business with $411.3 million in revenue, $163.7 million in operating income and $196.9 million in operating cash flow in 2025 — and an investment vehicle whose largest position is $603.4 million in a clinical-stage biotech company that Innoviva itself funds. The first company delivers cash; the second delivers the headline: $161.6 million of $326.9 million in 2025 pre-tax income and $191.2 million of $234.6 million in the first quarter of 2026 came from fair-value marks. The balance sheet, with $603.1 million in cash against only $261.0 million in convertible notes, is beyond question. Whoever buys here has to decide which of the two companies is being valued. Not investment advice.
Royalty business
The GSK royalties are a business without a factory: Innoviva carries neither selling nor manufacturing costs and collects 15 percent on the first $3.0 billion in annual net sales of RELVAR/BREO ELLIPTA plus 6.5 to 10 percent on ANORO ELLIPTA. That produced $236.5 million net of amortization in 2025. Group gross margin was 74.1 percent and the operating margin 40.1 percent (data as of July 24, 2026).
Quality of earnings
Reported profit largely measures share prices, not operations. In 2025, $161.6 million of $326.9 million in pre-tax income came from fair-value marks; in the first quarter of 2026 it was $191.2 million of $234.6 million. In the prior-year quarter the same line turned negative at minus $78.8 million and converted $41.4 million of operating income into a net loss of $46.6 million. Extrapolating earnings per share here means extrapolating a share price.
Armata concentration
As of March 31, 2026, $603.4 million of $773.3 million in carried investments sat in a single name, at an ownership stake of 68.4 percent. Armata itself reported $1.1 million in revenue and a $124.3 million net loss for the quarter ended December 31, 2025. Innoviva is also its principal creditor and advanced a further $25.0 million on May 12, 2026, lifting beneficial ownership to 82.7 percent.
Dependence on GSK
The 2025 annual report says it outright: the majority of revenue comes from GSK, and near-term success depends largely on GSK's commercialization. Innoviva has no influence over marketing or sales. Gross royalty revenue slipped to $250.3 million in 2025 (2024: $255.6 million) and to $58.6 million in the first quarter of 2026 from $61.3 million a year earlier — all recent growth came from the company's own product business.
Balance sheet and liquidity
As of March 31, 2026, $603.1 million in cash faced a single financial liability: the 2028 convertible notes with a $261.0 million principal at 2.125 percent interest, maturing only in March 2028. Equity stood at $1,341.7 million, the equity ratio at 73.05 percent and the Altman Z-score at 11.75 (data as of July 24, 2026). Operating cash flow was $196.9 million in 2025.
Valuation
Against reported 2025 earnings of $4.02 per share, the average buyback price of $21.06 documented in the quarterly report implies a price-to-earnings ratio of 5.2 — against the single available analyst estimate of $1.91 for 2026 it is 11.0. Subtract cash and investments from the market value of about $1,582.5 million (data as of July 26, 2026) and add back the debt, and roughly $467 million is left for an operating business that produced $163.7 million in operating income in 2025.
Worth Noting
Innoviva reached our research list through our in-house stock scanner: the stock appears in the U.S. selection of the list "Fundamental Rank (A / A+)", which counted 38 U.S. hits on July 26, 2026 and displays at most 25 of them. On the same day INVA appeared in 14 scanner lists, among them "Stan Weinstein: Stage 2", "Above 50- and 200-day SMA" and the EBIT margin ranking. These lists are recalculated daily.
Risk of confusion: Innoviva, Inc. (CIK 1080014) was named Theravance, Inc. until January 2016 and Advanced Medicine, Inc. before that. It is not the same company as Theravance Biopharma, a separate entity spun out in 2014 with its own SEC file number. The metrics also need care: because fair-value marks sit inside profit, the net margin stood at 119.9 percent as of July 24, 2026 — an arithmetic side effect, not a business achievement.
Valuation figures are dated and evergreen: the $21.06 anchor is not a daily price but the average price of share repurchases in the first quarter of 2026 as stated in the quarterly report (971,066 shares for $20.4 million). The cover page of the annual report supplies a second anchor: the market value of common equity held by non-affiliates on June 30, 2025 was $1.26 billion. Analyses are evergreen; daily prices are not a buy argument.
Stock Watch
This analysis is as of August 26, 2026. Stock Watch will tell you what's changed at INVA since then.
Later $1 a month per stock — signing up is free, and you'll be the first to know when it launches.
Price history
Chart
Interactive price chart (TradingView).
52-week range: 16.70 $ to 24.20 $ · Last price: 21.10 $ (As of: September 17, 2026)
Key figures
Key figures at a glance
Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 09/18/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Comparison
Industry comparison
The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.
Industry: Biotechnology
| Company | Market cap ($B) | P/E | EV/EBITDA | Gross Margin % | EBIT Margin % | Sales Growth (Year) % | Perf. 1Y % |
|---|---|---|---|---|---|---|---|
| Innoviva Inc INVA | 1.5 | – | 2.6 | 72.7 | 40.1 | 18.5 | 8.6 |
| Vertex Pharmaceuticals Inc VRTX | 130.6 | 31.3 | 24.5 | 55.0 | 38.1 | 9.6 | 33.4 |
| Regeneron Pharmaceuticals Inc REGN | 82.0 | 19.9 | 13.1 | 44.5 | 20.7 | 1.0 | 35.5 |
| Moderna Inc MRNA | 62.7 | – | 4.6 | -66.0 | -131.1 | -39.2 | 532.3 |
| argenx NV ARGX | 61.9 | 38.1 | 34.2 | 59.1 | 32.0 | 89.6 | 30.9 |
| Revolution Medicines Inc RVMD | 40.9 | – | -9.7 | -174,708.6 | 0.0 | -100.0 | 338.3 |
| BeiGene, Ltd. ONC | 40.0 | 63.1 | 34.1 | 88.9 | 19.1 | 40.2 | 6.4 |
| Alnylam Pharmaceuticals Inc ALNY | 32.6 | 61.8 | 28.4 | 79.7 | 23.0 | 65.2 | -48.1 |
| Royalty Pharma Plc RPRX | 32.5 | 31.8 | 19.6 | 95.8 | 100.3 | 5.1 | 68.6 |
| Median of companies shown | 40.9 | 34.9 | 19.6 | 59.1 | 23.0 | 9.6 | 33.4 |
Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →
Fiscal years
Annual Figures
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Revenue, operating income and net income per fiscal year $M
Revenue Operating income Net income
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 134 | 109 | 60 | 0.48 | 61 | -353 | 379 |
| 2017 | 217 | 184 | 134 | 1.12 | 142 | -243 | 367 |
| 2018 | 261 | 238 | 395 | 3.48 | 224 | 154 | 548 |
| 2019 | 261 | 246 | 157 | 1.39 | 257 | 314 | 725 |
| 2020 | 337 | 321 | 224 | 1.98 | 313 | 608 | 1,000 |
| 2021 | 392 | 375 | 266 | 2.82 | 364 | 415 | 926 |
| 2022 | 331 | 207 | 214 | 2.25 | 202 | 566 | 1,232 |
| 2023 | 310 | 114 | 180 | 2.07 | 141 | 675 | 1,244 |
| 2024 | 359 | 167 | 23 | 0.32 | 189 | 691 | 1,301 |
| 2025 | 425 | 164 | 271 | 3.20 | 197 | 1,173 | 1,635 |
Quarters
Quarterly Figures
Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.24 | -66.60 | 92 | 7.00 | 22.10 | 59 | 55 |
| 2025: Q1 | -0.74 | -271.90 | 89 | 14.40 | -52.60 | 49 | 49 |
| 2025: Q2 | 0.75 | – | 100 | -3.00 | 63.50 | 44 | 44 |
| 2025: Q3 | 1.06 | 5,391.70 | 108 | 20.40 | 83.40 | 50 | 49 |
| 2025: Q4 | 1.93 | 697.30 | 115 | 24.80 | 139.10 | 55 | 53 |
| 2026: Q1 | 2.20 | – | 98 | 10.60 | 190.40 | 35 | 35 |
| 2026: Q2 | -1.14 | -252.00 | 120 | 19.20 | -69.70 | 52 | 52 |
What Do These Terms Mean?
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Screening
Appears in These Scanners
This stock currently matches 13 of our scanner strategies — each hit links to the scanner.
Backtested Scanners
Quality & Balance Sheet
Breakout & Setup
Momentum & Trend
Research
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Outlook
Analysts & Price Target
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Distribution of Recommendations
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 12/31/2026 | 1.91 | 1.91 – 1.91 | 447 | 1.9% | 1 |
| 12/31/2027 | 2.21 | 2.21 – 2.21 | 489 | 15.7% | 1 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Valuation
What is priced in?
Instead of guessing what the stock is worth, we turn the question around: what free cash flow growth has to happen for today’s market value to add up? The assumptions behind it can be moved.
Today’s market value implies roughly -5.1% growth in free cash flow per year over ten years (assumptions: discount rate 10.0%, terminal growth 2.5%).
| Free cash flow (last twelve months) | $188.3M |
|---|---|
| Market cap | $1.50B |
| Free cash flow in year ten | $111.2M |
| Terminal value as a share of market value | 39.1% |
For comparison: over the past five years free cash flow shrank by 9.9% per year.
It shows which assumption is built into today’s price, not whether that assumption will hold. Every assumption can be changed with the sliders; the figures move with them.
A simplified model calculation — not a forecast and not a recommendation.
AI classification
AI Rating
Innoviva setzt Künstliche Intelligenz laut Geschäftsbericht 10-K für 2025 in ausgewählten Anwendungen zur Unterstützung des eigenen Betriebs ein; KI ist keine Umsatzquelle — Erlöse stammen aus GSK-Lizenzen und dem Verkauf eigener Krankenhausmedikamente. Eine Beteiligung an dem KI-Neurotechnologie-Unternehmen Beacon Biosignals über 17,5 Mio. US-Dollar ist eine Kapitalanlage, kein eigenes KI-Produkt.
View the full file — quotes, sources, reviewed filings
„Additionally, we utilize artificial intelligence (AI) and other emerging technologies in select applications to support our operations."
Darüber hinaus setzen wir Künstliche Intelligenz (KI) und andere aufkommende Technologien in ausgewählten Anwendungen ein, um unseren Geschäftsbetrieb zu unterstützen.
10-K · 2026-02-25 · View SEC filing
„AI technologies offer numerous potential benefits, such as creating or increasing operational efficiencies, and we expect the use of AI and generative AI by us, third parties on our behalf, and other market actors, including our competitors, to increase."
KI-Technologien bieten zahlreiche mögliche Vorteile, etwa das Schaffen oder Steigern betrieblicher Effizienz, und wir erwarten, dass die Nutzung von KI und generativer KI durch uns, durch Dritte in unserem Auftrag und durch andere Marktteilnehmer einschließlich unserer Wettbewerber zunehmen wird.
10-K · 2026-02-25 · View SEC filing
„In October 2025, Innoviva invested $17.5 million in the Series B Preferred Stock of Beacon Biosignals, Inc., an AI-driven neurotechnology company developing treatments for neurological, psychiatric, and sleep disorders."
Im Oktober 2025 investierte Innoviva 17,5 Millionen US-Dollar in die Serie-B-Vorzugsaktien von Beacon Biosignals, Inc., einem KI-gestützten Neurotechnologie-Unternehmen, das Therapien für neurologische, psychiatrische und Schlafstörungen entwickelt.
10-K · 2026-02-25 · View SEC filing
Filings Reviewed: 10-Q 2026-05-06 · 10-K 2026-02-25 · 10-Q 2025-11-05 · 10-Q 2025-08-06 · 10-Q 2025-05-07 · 10-K 2025-02-26
Rated on July 26, 2026 · How the Rating Is Built
Growth
Growth Score
Ten checks against the annual reports — each one passed counts a point.
- Revenue grows by more than 15% a year over three years 8.7%
- More than 10% revenue growth is expected for the coming year 10.3%
- Share count grows by less than 3% a year -3.8%
- Revenue growth plus cash-flow margin add up to at least 40 ("Rule of 40") 62.4%
- Gross margin at 40% or higher and without meaningful erosion 72.3%
- Goodwill from acquisitions does not grow faster than revenue 1.1%
- Net debt below twice EBITDA 282 m net cash
- Operating cash flow covers the profits of the last three years 52 m
- Return on capital at 15% or higher, or up versus two years ago 10.3%
- Insiders hold at least 10% or are net buyers 1.0%
A criterion without figures counts neither as passed nor as failed; a score is only produced from 7 judgeable criteria upwards. Source: fundamental data. All ten criteria in detail
Quality check
AAQS
5/10The AAQS (AlleAktien Quality Score) checks 10 quality criteria on growth, profitability, and balance-sheet strength — per the methodology developed and published by AlleAktien, calculated by us from our own fundamental data. A stock counts as a quality stock from 9 out of 10 points. Where a company has a shorter listing history, we calculate over the fiscal years available (at least five).
- Sales growth 10Y > 5% 13.7%
- Exp. sales growth 3Y > 5% 7.2%
- EBIT growth 10Y > 5% 4.6%
- Exp. EBIT growth 3Y > 5% -16.9%
- Net debt < 4x EBIT -1.7x
- EBIT positive, 10Y straight 10
- Max. EBIT decline < 50% 69.6%
- Return on equity > 15% 27.9%
- ROCE > 15% 10.3%
- Expected return > 10% -6.5%
View stocks with the full AAQS score · Read the methodology at AlleAktien
Source: fundamental data
Insiders
Insider Transactions
Reportable transactions by officers and major shareholders from SEC Form 4 filings. "Other" includes things like stock grants and option exercises without a buy/sell character.
| Date | Person | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Aug 20, 2026 | Zhen Marianne | Chief Accounting Officer | Other | 1,127 | 21.00 | 23,667 |
| Aug 20, 2026 | Basso Stephen | Chief Financial Officer | Other | 558 | 21.00 | 11,718 |
| Aug 20, 2026 | Raifeld Pavel | Chief Executive Officer | Other | 1,130 | 21.00 | 23,730 |
The company
About the Company
Innoviva, Inc. ist als biopharmazeutisches Unternehmen in den USA und international tätig.
- Employees
- 159
- Headquarters
- Burlingame, CA
- Address
- 1350 Old Bayshore Highway, 94010 Burlingame, United States
- Phone
- 650 238 9600
- Website
- inva.com
- IPO Date
- 10/05/2004
- ISIN
- US45781M1018
- Stock Split
- 1241:1000 on 06/03/2014
Management
| Name | Title | Birth Year |
|---|---|---|
| Pavel Raifeld C.F.A. | CEO & Director | 1984 |
| Stephen Basso M.B.A. | Chief Financial Officer | 1966 |
| Marianne Zhen CPA | Chief Accounting Officer & Secretary | 1969 |
| Patricia M. Drake | Chief Commercial Officer-Innoviva Specialty Therapeutics, Inc. | 1967 |
| David Altarac M.D., MPA | Chief Medical Officer of IST | 1962 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Filings
Company Filings (8-K)
An 8-K is the filing a US company must use to disclose material events immediately — takeovers, changes at the top, major contracts or payment troubles, for instance. The links open the original document at the US Securities and Exchange Commission (SEC).
- 08/05/2026 Innoviva, Inc. (INVA): Results of Operations and Financial Condition; Financial Statements and Exhibits SEC ↗
Data as of: September 17, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.