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

Business overview and strategy

• Built on a foundation of respiratory drug royalties, generating over $250 million annually and projected to deliver $1 billion over five years.

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

• 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.

• Strong cash flows and profitability support both organic and inorganic growth opportunities.

Royalty portfolio and global market position

• Royalties stem from two best-in-class respiratory therapies commercialized by GSK, with most revenue from outside the U.S.

• Products are mature in the U.S. but continue to outperform expectations globally due to less competition.

• Revenue durability is supported by strong IP protection and manufacturing complexity.

• Five-year analyst consensus projects over $200 million in annual royalty revenue.

• Recent earnings show a 2% increase in royalties in the first half of the year.

Specialty therapeutics (IST) platform and product pipeline

• IST platform was built via a roll-up strategy, focusing on differentiated products for critical care and infectious diseases.

• Portfolio includes GIAPREZA, XERAVA, XACDURO, and pre-NDA product zoliflodacin.

• GIAPREZA targets shock patients with unmet needs; growth drivers include guideline inclusion and new data.

• XERAVA addresses rising resistance and offers advantages over existing antibiotics.

• XACDURO is the first approved treatment for carbapenem-resistant Acinetobacter, with targeted use improving access.

• Zoliflodacin met Phase III endpoints for resistant gonorrhea and is positioned for global standard of care.