BTIG has initiated coverage on Innoviva Inc. (NASDAQ: INVA) with a Buy rating and a $35.00 price target, a level that suggests material upside from the stock’s current trading price of $22.70. InvestingPro data cited by BTIG indicate Innoviva has appreciated roughly 25.55% over the past 12 months and is viewed as undervalued against InvestingPro’s Fair Value estimate.
The analyst note highlights a sizable expected cash inflow tied to royalty rights for two inhaled therapies targeting COPD and asthma. BTIG’s estimate puts the value of those royalty streams at more than $1.2 billion through 2030. Management is positioning to redeploy that capital across a mix of activities, including internal development in infectious disease and critical care therapies, targeted strategic investments, and returns to shareholders.
Financial positioning is a central point in BTIG’s assessment. InvestingPro metrics show Innoviva maintaining a balance sheet with more cash than debt, coupled with a high shareholder yield. Those elements underpin BTIG’s confidence that the company can pursue growth initiatives without compromising liquidity.
On the commercial side, Innoviva’s internally marketed products generated over $140 million in revenue for the 12 months ending September 2025. The company reported third-quarter 2025 revenue that reflected more than 50% year-over-year growth, with a concentration of product sales in the hospital setting. For the trailing twelve months, total revenue stood at $388.52 million, representing a 10.14% year-over-year revenue growth rate and an 84.54% gross profit margin.
Ownership stakes and recent technology acquisitions also feature in BTIG’s analysis. Innoviva holds majority positions in Armata Pharmaceuticals Inc. and the private company Syndeio. The firm’s holding structure was described as reminiscent of another company prior to that company’s subsidiary consolidation. Separately, Innoviva has acquired an extended-release platform for oral small molecules capable of weekly or better dosing intervals.
Market valuation metrics cited in the coverage place Innoviva at a market capitalization of approximately $1.7 billion and a price-to-earnings ratio of 14.84. BTIG notes that the company’s P/E appears low relative to its near-term earnings growth potential.
Looking ahead to 2026, BTIG highlights several potential catalysts for upside. Those include continued expansion of Innoviva’s internal commercial efforts, value creation from strategic investments, and the possibility of accretive acquisitions - BTIG specifically referenced anti-fungal opportunities that could realize synergies with existing commercial channels. InvestingPro’s analysis indicates that net income is expected to increase during the current year and that Innoviva is generating significant free cash flow, which could provide a funding source for these initiatives.
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Separate regulatory development noted in the coverage
The update also references a distinct pharmaceutical development: Inova Technology’s receipt of U.S. Food and Drug Administration approval for NUZOLVENCE (zoliflodacin), a first-in-class, single-dose oral therapy for uncomplicated urogenital gonorrhea. The FDA-approved indication covers adults and pediatric patients aged 12 years and older who weigh at least 35 kilograms. H.C. Wainwright responded to the approval by raising its price target for Inova Technology from $45 to $46 while maintaining a Buy rating.
BTIG’s initiation on Innoviva centers on the company’s anticipated royalty windfall, its cash-forward balance sheet, and a mix of internal growth and strategic deployment options. The firm’s outlook balances the projected revenue from inhaled-therapy royalties with ongoing commercial progress and potential acquisition-driven synergies.