Innoviva Inc (INVA)
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Innoviva collects royalties on two GSK asthma and COPD medicines and sells five hospital products of its own. That business generated $411.3 million in revenue and $196.9 million in operating cash flow in 2025. Reported net income, however, was $271.2 million — $161.6 million of it from fair-value marks on investments, mainly the share price of Armata Pharmaceuticals. In the first quarter of 2026, $191.2 million of $234.6 million in pre-tax income came from the same line. And Armata is funded by Innoviva itself: most recently on May 12, 2026, with another $25.0 million loan. Not investment advice — just the question of which line in this income statement you actually believe.
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Basics
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Quality & Screener
AI Rating
Uses AIInnoviva 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.
„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.
„In October 2025, Innoviva invested $17.5 million in the Series B Preferred Stock of Beacon Biosignals, Inc., an AI-driven neurotechnology company developing treatments for neurological, psychiatric, and sleep disorders."
Im Oktober 2025 investierte Innoviva 17,5 Millionen US-Dollar in die Serie-B-Vorzugsaktien von Beacon Biosignals, Inc., einem KI-gestützten Neurotechnologie-Unternehmen, das Therapien für neurologische, psychiatrische und Schlafstörungen entwickelt.
Filings Reviewed: 10-Q 2026-05-06 · 10-K 2026-02-25 · 10-Q 2025-11-05 · 10-Q 2025-08-06 · 10-Q 2025-05-07 · 10-K 2025-02-26
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($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 | 118 | 28.60 | 139.10 | 55 | 53 |
| 2026: Q1 | 2.20 | – | 98 | 10.60 | 190.40 | 35 | 35 |
- 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.
Assessment: Opportunities & Risks
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).
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.
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.
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.
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.
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.
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.
- 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 15 scanner lists, among them "Stan Weinstein: Stage 2", "Power Trend", "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.
About the Company
Innoviva, Inc. ist als biopharmazeutisches Unternehmen in den USA und international tätig.
| Employees | 159 |
|---|---|
| Headquarters | Burlingame, CA |
| Website | inva.com |
| IPO Date | 5. Oct 2004 |
| Next Earnings | 5. Aug 2026 |
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.
Chart
Interactive price chart (TradingView).
Data as of: July 24, 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.