Here are 1-3 brief analogies to describe Innoviva:

• Innoviva is like a Universal Music Group for pharmaceutical drug royalties, generating revenue from licensing successful drug intellectual property rather than developing or selling drugs directly.
• Innoviva is like a Realty Income for pharmaceutical drug patents, collecting 'rent' (royalties) from the sales of successful drugs by other pharmaceutical companies.

• Royalty Streams from Licensed Respiratory Drugs: Innoviva generates income from the sales of FDA-approved respiratory medicines (e.g., Trelegy Ellipta, Anoro Ellipta) developed in collaboration with GlaxoSmithKline (GSK).
• Strategic Investments in Healthcare Companies: Innoviva manages a portfolio of equity investments in other biotechnology and healthcare companies, aiming to achieve capital appreciation and generate financial returns.

Innoviva (INVA) primarily sells to other companies (B2B).

Its major customer, from which it derives substantial royalty revenues, is:

• GlaxoSmithKline (Symbol: GSK)

The most clear emerging threat to Innoviva (INVA) is the progressive loss of patent exclusivity for its key royalty-generating respiratory products, primarily Trelegy Ellipta and Anoro Ellipta. As the patents for these drugs expire in various key markets over the coming years, they will face generic competition, leading to a significant erosion of the royalty income that currently forms the foundation of Innoviva's financial model. This impending "patent cliff" directly threatens the sustainability of Innoviva's established revenue streams, compelling the company to actively diversify its investments in anticipation of declining royalties.

Innoviva (symbol: INVA) has a portfolio of products addressing respiratory conditions, critical care, and infectious diseases.

For their main products, the addressable markets are as follows:

• Respiratory Products (including RELVAR/BREO ELLIPTA, ANORO ELLIPTA, and TRELEGY ELLIPTA for asthma and COPD): The global inhalable drugs market, which includes treatments for respiratory diseases such as COPD and asthma, was valued at approximately USD 22.76 billion in 2024 and is projected to grow to USD 32.04 billion by 2030, with a Compound Annual Growth Rate (CAGR) of 5.9%. North America held the largest share of this market in 2022. Separately, the global severe asthma treatment market is valued at USD 24.30 billion in 2025 and is expected to reach USD 39.96 billion by 2035, growing at a CAGR of 5.1%.

For Innoviva's critical care and infectious disease therapeutics, including GIAPREZA (for septic or other distributive shock), XERAVA (for complicated intra-abdominal infections), XACDURO (for hospital-acquired and ventilator-associated bacterial pneumonia), and ZEVTERA (for bacterial infections), specific addressable market sizes were not identified in the provided information. Therefore, the market size for these products is null.

Innoviva (INVA) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and existing revenue streams:

1. Growth of Innoviva Specialty Therapeutics (IST) Products: Innoviva's Specialty Therapeutics (IST) segment is a significant driver, consistently demonstrating strong year-over-year sales growth. Products within this portfolio, such as GIAPREZA®, XACDURO®, and XERAVA®, are expanding their market reach, particularly in critical care and infectious diseases. Innoviva anticipates U.S. net product sales from IST to exceed $100 million in 2025.

2. Market Penetration of ZEVTERA®: The U.S. launch of ZEVTERA® (ceftobiprole medocaril sodium) in mid-2025 is expected to contribute to revenue growth. ZEVTERA® is the first and only FDA-approved cephalosporin for MRSA-related Staphylococcus aureus bacteremia, and early market reception has been encouraging.

3. Potential Launch of Zoliflodacin: Innoviva is advancing zoliflodacin, a potential first-in-class single-dose oral treatment for uncomplicated gonorrhea, with a PDUFA target action date of December 15, 2025. If approved, this new antibiotic could address a significant unmet medical need and represent a transformative solution in combating antimicrobial resistance, thereby driving future sales.

4. Durable Royalty Portfolio: The company maintains a robust and stable royalty revenue stream from its partnership with Glaxo Group Limited (GSK), primarily from respiratory assets like Relvar/Breo/Ellipta, Anoro, and Trelegy Ellipta. This portfolio demonstrated 5% growth in Q3 2025 compared to the previous year and provides a consistent, high-margin income source.

Share Repurchases

• In November 2025, Innoviva's Board of Directors authorized a new share repurchase program allowing for the repurchase of up to $125.0 million of its outstanding common stock, with no specified termination date.
• Innoviva repurchased 6,173,565 shares of its common stock for $76.5 million during the year 2023.
• In May 2021, Innoviva repurchased GSK's 32% equity stake in the company, amounting to approximately 32 million shares, for a total purchase price of $392 million.

Share Issuance

• In August 2025, a significant portion of the company's 2025 convertible noteholders opted to convert an aggregate principal balance of $192.5 million into 11.1 million shares of Innoviva common stock.

Outbound Investments

• Innoviva acquired a proprietary long-acting oral drug delivery platform and related assets from Lyndra Therapeutics, Inc. in September 2025, which included an upfront payment of $10.2 million.
• In August 2025, Innoviva invested $15.0 million in a term loan to Armata Pharmaceuticals.
• Innoviva completed the acquisition of La Jolla Pharmaceutical Company for approximately $210 million in August 2022, adding products like GIAPREZA and XERAVA to its portfolio.

Capital Expenditures

• Innoviva has maintained historically low capital expenditures, reporting -$4.17 million in 2024, -$411 thousand in 2023, and -$67 thousand in 2022.
• The company's strategy emphasizes deploying capital into underappreciated areas with high-quality assets, while maximizing its existing royalty portfolio and critical care/infectious disease platform.