Innoviva (INVA) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Business overview and strategy

• Built on strong respiratory drug royalties, generating over $250 million annually and projected to exceed $1 billion in revenue over five years.

• Expanded into critical care and infectious disease therapeutics, with IST platform sales growing 50% year-over-year to $90 million.

• Holds a diversified healthcare asset portfolio valued at over $500 million, offering attractive risk-reward.

• Focuses on capital allocation to high unmet medical needs and long-term shareholder value.

• Royalty streams and asset diversification provide downside protection and sustainable funding.

Product portfolio and growth drivers

• Respiratory royalties are resilient, with most revenue from international markets and strong IP protection extending into the 2030s.

• IST platform features differentiated products for septic shock, intra-abdominal infections, and resistant gonorrhea, with a recent successful Phase III readout.

• GIAPREZA and XERAVA have strong utilization and near-term growth drivers, including guideline updates and new data.

• XACDURO, targeting Acinetobacter baumannii, is the first approved for this indication and is seeing strong early access.

• Zoliflodacin, a potential oral therapy for resistant gonorrhea, met Phase III endpoints and addresses a large global market.

Financial performance and recent achievements

• First half of the year saw substantial revenue growth, with royalties up 2% and therapeutics up 50%.

• XACDURO approved in China, generating $14 million in milestone payments and nominated for a Prix Galien Award.

• Completed a $100 million share buyback, reflecting confidence in future growth.

• Updated guidelines led to preferred placement for XACDURO and XERAVA.