Innoviva (INVA) Stock Forecast & Price Target

Innoviva Inc. has demonstrated strong sales growth across its portfolio, with Giapreza achieving a remarkable 33% increase in sales from 2023 to 2024, while Xerava has consistently delivered over 20% annual sales growth since its acquisition. The overall yearly sales for these assets have surged by 65% compared to the period prior to their acquisition in the third quarter of 2022. Notably, historical performance indicates that Innoviva's acquisitions, including Giapreza and Xerava, have significantly outperformed under the company’s management, with their annualized run rates nearly doubling since the acquisition.

Innoviva's outlook is negatively impacted by projected declines in royalties from key products, with Relvar/Breo expected to decrease by an average of 8% year-over-year and Anoro by 4% over the next eight years. Additionally, the company faces looming challenges with the anticipated loss of exclusivity for Giapreza in 2034, which could significantly weaken its revenue alongside declining royalty streams. Furthermore, concerns regarding the efficacy and safety profile of colistin raise further uncertainties about future revenue from critical care and infectious disease assets.