Innoviva (INVA) Citi's 2024 Global Healthcare Conference summary

Company overview and evolution

• Evolved from a royalty-focused business to a diversified healthcare company with three segments: royalties, hospital therapeutics, and strategic healthcare assets.

• Royalty segment generates about $250 million annually from stable respiratory products partnered with GSK.

• Hospital therapeutics business (IST) has three marketed products and a pipeline, delivering just under $100 million in revenue.

• Strategic healthcare portfolio valued at over $500 million, with assets offering strong risk-reward profiles.

• Growth driven by capital allocation in areas of high unmet medical need, including infectious disease and hospital care.

Recent performance and business highlights

• Royalty portfolio outperformed expectations, showing year-on-year growth despite maturity.

• IST business achieved strong growth, highlighted by the successful launch of XACDURO.

• Strategic healthcare assets, such as Armata and Gate Neurosciences, made significant operational progress and are positioned for clinical milestones in the next 6-12 months.

Key drivers and strategy for IST business

• IST is a fully integrated business with commercial, clinical, and regulatory capabilities.

• Growth driven by GIAPREZA and XACDURO, with the latter recognized as a top choice for resistant infections and nominated for the Galien Prize.

• Focus on differentiated assets and building robust commercial infrastructure to ensure profitability and sustainability.

• Royalty streams provide financial stability, enabling long-term strategic decisions and insulation from market volatility.