Innoviva (INVA) Barclays 27th Annual Global Healthcare Conference summary

Business overview and strategy

• Evolved from managing royalty revenues to investing in high unmet medical need areas, creating long-term value for shareholders.

• Now operates three segments: royalty business, infectious disease therapeutics, and a portfolio of strategic healthcare assets.

• Royalty business generated over $250 million last year, with forecasts exceeding $1 billion over five years.

• Infectious disease platform doubled revenue to over $100 million last year, with significant expansion and new product launches.

• Strategic healthcare assets valued at over $0.5 billion, offering multiple value creation opportunities and downside protection.

Royalty business insights

• Royalties stem from asthma and COPD drugs BREO/RELVAR and ANORO, commercialized by GSK.

• Products have strong patient and physician loyalty, with high stickiness and maintenance therapy benefits.

• Revenue growth driven by ex-U.S. markets, with significant growth pockets.

• Both products have robust IP protection extending to 2030 and beyond, with generics facing high entry barriers.

• Competitive moat and resilience of products may be underestimated by consensus estimates.

Infectious disease and hospital therapeutics

• Infectious disease space seen as an opportunity due to industry challenges and value destruction.

• Focus on differentiated products, fiscal discipline, and scale to build a sustainable, profitable business.

• IST (Innoviva Specialty Therapeutics) launched ZEVTERA, with three products on the market and another licensed.

• ZEVTERA, licensed from Basilea, is differentiated for MRSA bacteremia, pneumonia, and skin infections; launch expected mid-year.

• NDA submission for zoliflodacin is on track, with hopes for approval within a year; targets unmet need in gonorrhea.