Innoviva, Inc.

inva.com

What Do They Do?

Earns royalties from GSK's respiratory medicines and markets critical-care and infectious-disease treatments for hospital use, alongside investments in other healthcare businesses.

How Do They Make Money?

Innoviva earns royalties from GSK on sales of partnered respiratory medicines, with royalties tied to the period of those sales. It sells its own medicines to customers, with sales counted when customers receive the products.

FY2025 revenue by product or service revenue

Segment	Share	How money arrives
Royalty Revenue Licensed	57% FY2022: 94%	Licensed
Net product sales Sold outright	42% FY2022: 5.9%	Sold outright
License and other revenue	0.7% FY2022: 0.0%

Who Are Their Customers?

Its hospital-focused medicines are sold through distributors, while pricing arrangements can also involve health-system contracts, group purchasing organizations, and government facilities.

Do Revenues Turn Into Profits?

Yes. It kept 66 cents of every revenue dollar as net income in FY2025 and turned 48 cents into free cash flow.

Operating income, FY2025

40% of revenue

▼ −2% vs FY2024 ($166.9M, 47%)

Net income, FY2025

66% of revenue

▲ +1059% vs FY2024 ($23.4M, 7%)

Free cash flow, FY2025

48% of revenue

▲ +4% vs FY2024 ($188.4M, 53%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +19%; vs $100.3M in Q2 FY2025
Net income: ▼ Now a loss; vs $63.7M in Q2 FY2025

Royalty Revenue share of revenue vs 63.7% in Q2 FY2025

Aug 5, 2026 Set 2026 IST sales target, licensed XACDURO in new markets, and launched Nortiva Bio It targeted at least $150 million in 2026 IST U.S. product sales, agreed to license XACDURO in several regions, and launched Nortiva Bio.

Expanded commercial platform Moved from a portfolio of royalties and other healthcare assets, with marketed medicines for shock and abdominal infections and an infection-treatment candidate in development, to a biopharmaceutical company with a commercial critical-care and infectious-disease platform and a broader marketed-product portfolio.

Revenue over time

Royalty Revenue Net product sales License and other revenue License revenue

$500M$250M$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with GSK, AstraZeneca, TEVA, Boehringer Ingelheim, Merck, Novartis, Sunovion, Chiesi, Genentech, Sanofi Genzyme, and Amgen

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