Innoviva (INVA) 2024 Cantor Fitzgerald Global Healthcare Conference summary

Business overview and strategy

• Focuses on three main segments: a durable royalty portfolio, a growing hospital therapeutics platform (IST), and a $500M+ portfolio of strategic healthcare assets.

• Royalty revenues from Anoro and Breo are expected to exceed $1B over the next five years, with most revenue from ex-U.S. markets.

• IST platform generated nearly $100M in revenue in the past year, with strong organic growth and new product launches.

• Strategic investments include majority stakes in companies like Armata and private assets in high-need areas such as psychiatry.

• Sees synergies between segments, using royalty cash flows to fund growth in other areas.

Product pipeline and market opportunities

• XACDURO, a novel therapy for resistant Acinetobacter, is performing above expectations and has strong international potential, with a partner in China projecting $500M+ peak sales.

• Zoliflodacin, an oral treatment for Gonorrhea, has positive phase III data and is expected to be filed with the FDA early next year, targeting a large global market facing rising resistance.

• IST’s commercial platform includes three marketed products and a new launch, with another product expected to reach the market soon.

• Recent positive guideline updates for XACDURO and XERAVA are already boosting traction, with further updates for GIAPREZA anticipated next year.

Growth, capital allocation, and future plans

• Plans to continue disciplined acquisitions, focusing on assets that fit IST’s capabilities and offer strong synergies.

• Capital allocation priorities include IST business development, strategic investments, and returning capital to shareholders, with $500M returned over the past few years.

• Expects IST revenues to potentially surpass current royalty revenues within a few years, ensuring business stability post-royalty portfolio.

• Exploring new verticals beyond infectious disease, such as CNS and rare diseases, with ongoing evaluation of opportunities.

• Key catalysts in the next 12 months include FDA filing for Zoliflodacin, XACDURO’s commercial performance, and developments in strategic assets.