Innoviva (INVA) Stock Analysis

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Q2 2022 hedge fund letters, conferences and more

1. Executive Summary

Innoviva is a pioneer in the new business model of biotech royalties. The royalty model used to be reserved for the relationship between major pharmaceutical firms and up-and-coming biotech startups. So while this model is not entirely new, pure players focused exclusively on royalty revenue are still rare.

Thanks to its earlier success, Innoviva now has a solid portfolio of royalty streams from drugs used in the treatment of pulmonary issues and asthma. Just by itself, this cash flow could justify Innoviva’s current valuation.

Innoviva has also entered a neglected but potentially very lucrative new...