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Innoviva

INVA
67
Biotechnology · Healthcare
Price
$20.78
-0.08 (-0.38%)
Market Cap
$1.50B
Exchange
NASDAQ
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 18, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
23/30
Growth
Good
12/20
Cash Flow
Good
6/10
Stability
Exceptional
9/10
Valuation
Good
6/10
Ownership
Good
8/15
Dividends
Not counted
n/a

64 of 95 counted points = Winston Score 67. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count falling — buybacks

−10.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 94.3M (2021) → 84.8M (2025)

§Winston Score History

The full picture

Innoviva is a healthcare company that earns royalties from respiratory medicines and also owns stakes in smaller biotech companies. Its most important products are Relvar/Breo Ellipta and Anoro Ellipta, two inhaled drugs used to treat asthma and chronic obstructive pulmonary disease (COPD). These medicines are sold by GlaxoSmithKline, and Innoviva simply collects a share of the sales revenue without running the commercial operations itself.

Most of Innoviva's income comes from royalty payments tied to how well GSK sells those respiratory drugs, making its revenue relatively predictable but also dependent on a single partner. The company operates primarily in the United States and has used its royalty cash flow to build a portfolio of investments in specialty pharmaceutical and biotech companies. The main risk is that royalty streams from the GSK products will decline over time as the drugs face generic competition or lose market share, and Innoviva's ability to replace that income through its investment portfolio remains uncertain.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+19.3% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-212.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$31M/ year

↑ Rising (+124% vs prior year)

7.2% of revenue

Below sector average (18%)

R&D investment increasing — building for the future

Insider Activity

6.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Innoviva is a rare growth stock that's already generating positive cash flow while growing at 19%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
75.8%
Premium pricing power — 75.8% gross margin
Profit after running costs
Operating Margin
42.5%
Excellent — 42.5% operating margin
Return on the money invested
ROCE
10.9%
Below par — 10.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
+19.8%
Fast-growing sales (+19.8% YoY)
Profit growth
EPS YoY
+699.1%
Earnings growing fast (+699.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
54%
Weak — only 54% of profit becomes cash
Spare cash per sale
FCF Margin
42.5%
Converts sales into free cash efficiently (42.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
0.21
Conservative — low debt load (0.21)
Covers its interest
Interest Cover
8.92x
Comfortably covers interest (8.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
4.3x
Attractive valuation — P/E 4.3

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-6.4
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Not applicable for this business.
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