Innoviva, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 5 August 2026: press release. Guidance figures: 1 new. The quarter’s numbers.

Key takeaways

IST net product sales 46% YoY growth: Q2 IST net product sales reached $51.8 million, up 46% year-over-year from $35.5 million in Q2 2025. U.S. sales of $36.6 million grew 26%. Source
2026 U.S. sales guidance confirmed: Management reaffirmed on track to achieve at least $150 million in IST U.S. net product sales for full-year 2026. Source
Nortiva Bio launched with LYNX platform: Q2 saw launch of wholly-owned Nortiva Bio subsidiary focused on LYNX long-acting oral drug delivery technology designed to transform daily oral medicines into less frequent dosing regimens. Source
Q2 share repurchase of $31.4 million: Innoviva repurchased 1,403,247 shares for $31.4 million during Q2 2026 under its $125 million share repurchase program. Source

“Innoviva delivered another strong quarter, supported by durable cash generation from our royalty portfolio and continued excellent commercial momentum at IST, which achieved 46% year-over-year net product sales growth, including 26% growth in U.S. sales”
Pavel Raifeld, Chief Executive Officer

Guidance

Area	Period	Figure	Against last quarter
IST U.S. net product sales Source	fiscal 2026	at least $150 million	New

What changed from last quarter

New: Nortiva Bio launched as wholly-owned subsidiary to advance LYNX long-acting oral drug delivery platform designed to transform daily oral medicines into less frequent dosing regimens. Source
New guidance: IST U.S. net product sales target for 2026 of at least $150 million established, with Q2 results of $36.6 million on pace for full-year objective. Source

IST Sales Growth and Momentum

IST net product sales 46% YoY growth: Q2 IST net product sales reached $51.8 million, up 46% year-over-year from $35.5 million in Q2 2025. U.S. sales of $36.6 million grew 26%. Source
GIAPREZA leads U.S. product sales: GIAPREZA contributed $21.0 million in Q2 U.S. sales, followed by XACDURO at $12.0 million and XERAVA at $3.3 million. Source
2026 U.S. sales guidance confirmed: Management reaffirmed on track to achieve at least $150 million in IST U.S. net product sales for full-year 2026. Source

Royalty Portfolio Stability

Royalty revenue steady quarter-over-quarter: Q2 royalty revenue from GSK remained stable at $59.8 million, up 2% from $58.6 million in Q1 2026. Source
Durable cash generation from royalties: CEO cited royalty portfolio as source of durable cash generation providing financial stability despite market volatility in equity investments. Source

“We remain on track to achieve at least $150 million in IST U.S. net product sales in 2026, reflecting the differentiation of our marketed critical care and infectious disease portfolio and robust execution”
Pavel Raifeld, Chief Executive Officer

Nortiva Bio Launch and Development

Nortiva Bio launched with LYNX platform: Q2 saw launch of wholly-owned Nortiva Bio subsidiary focused on LYNX long-acting oral drug delivery technology designed to transform daily oral medicines into less frequent dosing regimens. Source
Gates Foundation backs lead program: Nortiva advancing lead once-monthly oral drug therapy program with Gates Foundation support and building external partnering pipeline for long-acting oral versions of branded and generic therapies. Source
LYNX improves patient adherence and dosing: LYNX platform designed to improve patient adherence, stabilize drug exposure, and enhance clinical and commercial value by enabling less frequent oral dosing regimens. Source

Commercial Expansion and Partnerships

XACDURO characterized as top performer: XACDURO, which generated $12.0 million in Q2 U.S. sales, was described by CEO as top-performing antibiotic now expanding to emerging markets via Dr. Reddy's. Source

“Our continued activity under the share repurchase program reflects our sustained conviction in the long-term prospects of our diversified business model”
Pavel Raifeld, Chief Executive Officer

Strategic Investments and Portfolio Value

Strategic investments valued at $669.5 million: Equity and long-term investments totaled $669.5 million as of June 30, 2026, comprised of $457.7 million in Armata Pharmaceuticals, $177.3 million in other equity and convertible debt, and $34.5 million in ISP Fund. Source
Armata share price decline of $161 million: Net unfavorable changes in fair value of equity and long-term investments totaled $161.0 million in Q2, primarily due to lower share price of Armata Pharmaceuticals. Source

Capital Allocation and Share Repurchases

Q2 share repurchase of $31.4 million: Innoviva repurchased 1,403,247 shares for $31.4 million during Q2 2026 under its $125 million share repurchase program. Source
Strategic asset portfolio capital deployment: During Q2, Innoviva provided $55.0 million in aggregate capital commitments to companies in its strategic healthcare asset portfolio. Source

Financial Position and Operating Results

Total revenue 19% higher year-over-year: Total revenue reached $119.6 million in Q2 2026, up 19% from $100.3 million in Q2 2025, combining royalty revenue, net product sales, and license revenue. Source
Operating income increased to $50.9 million: Income from operations increased to $50.9 million in Q2 2026 from $48.8 million in Q2 2025, reflecting higher net product sales and continued operating discipline. Source
Receivables up 25% year-over-year: Royalty and net product sales receivables totaled $110.6 million, a 25% increase from $88.3 million in Q2 2025. Source
Net loss from investment fair value changes: Q2 net loss of $83.4 million or $1.14 loss per share was driven primarily by $161.0 million unfavorable change in equity investment fair values. Source

Coming up, as management said on 5 August 2026

Dr. Reddy's XACDURO commercialization implementation: Exclusive distribution and licensing agreement with Dr. Reddy's Laboratories for XACDURO development and commercialization in South and Central America, Caribbean, Russia, and CIS countries signed in Q2 and moving to implementation. Source
Nortiva Bio platform partnership expansion: Nortiva advancing lead once-monthly oral drug therapy program with Gates Foundation support and building external partnering pipeline for long-acting oral versions of branded and generic therapies. Source

Risks management discussed

Financial: Equity investment portfolio subject to significant fair value volatility; Armata Pharmaceuticals declined $161 million in value during Q2 2026, reducing strategic healthcare investment portfolio from $773.3 million to $669.5 million. Source

Earlier plans management reported on

On track: Management stated company remains on track to achieve full-year 2026 target for IST U.S. net product sales of at least $150 million. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Innoviva Reports Second Quarter 2026 Financial Results; Highlights Recent Company Progress

IST achieved U.S. net product sales of $36.6 million in the second quarter, representing 26% year-over-year growth

Royalties portfolio generated $59.8 million in second quarter revenue

Launch of wholly-owned Strategic Healthcare Asset, Nortiva Bio, focused on novel extended-release drug delivery technology

BURLINGAME, Calif. - Aug 5, 2026 - Innoviva, Inc. (NASDAQ: INVA) (“Innoviva” or the “Company”), a diversified biopharmaceutical company with a core royalties portfolio, a leading critical care and infectious disease platform known as Innoviva Specialty Therapeutics (“IST”), and a portfolio of strategic investments in healthcare assets, today reported financial results for the second quarter ended June 30, 2026, and highlighted select corporate progress and achievements.

“Innoviva delivered another strong quarter, supported by durable cash generation from our royalty portfolio and continued excellent commercial momentum at IST, which achieved 46% year-over-year net product sales growth, including 26% growth in U.S. sales. We remain on track to achieve at least $150 million in IST U.S. net product sales in 2026, reflecting the differentiation of our marketed critical care and infectious disease portfolio and robust execution,” said Pavel Raifeld, Chief Executive Officer of Innoviva.

“Recently, we also advanced several growth opportunities. This quarter, we announced a commercialization and licensing agreement with Dr. Reddy’s Laboratories, expanding access to our top-performing antibiotic, XACDURO, in emerging markets. Additionally, we launched Nortiva Bio, a novel platform for long-acting oral medicine delivery, with large upside potential.”

“Overall, we have been pleased with progress across our healthcare asset portfolio, despite market volatility. Our continued activity under the share repurchase program reflects our sustained conviction in the long-term prospects of our diversified business model - one that combines durable cash generation, strong operating revenue growth, and value creation in high-potential strategic opportunities.”

Financial Highlights for the Second Quarter of 2026

Total revenue: $119.6 million, representing 19% year-on-year growth compared to $100.3 million for the second quarter of 2025.
Royalty revenue: gross royalty revenue from Glaxo Group Limited (“GSK”) remains stable at $59.8 million in the second quarter of 2026, a 2% increase compared to $58.6 million in the first quarter of 2026.
Net product sales: $51.8 million ($36.6 million U.S. and $15.2 million ex-U.S.), representing 46% growth compared to $35.5 million in the second quarter of 2025. U.S. net product sales primarily consisted of $21.0 million from GIAPREZA®, $12.0 million from XACDURO®, and $3.3 million from XERAVA®.
Income from operations: $50.9 million, compared to $48.8 million for the second quarter of 2025, reflecting higher net product sales and continued operating discipline.
Equity and long-term investments: net unfavorable changes in fair value of equity and long-term investments totaled $161.0 million, primarily attributable to a lower share price of Armata Pharmaceuticals. Innoviva’s strategic healthcare investments were valued at $669.5 million as of June 30, 2026, and consisted of $457.7 million in Armata Pharmaceuticals, $177.3 million in other strategic equity and convertible debt, and $34.5 million held by ISP Fund.
Net income: net loss of $83.4 million, or $1.14 basic loss per share, driven primarily by decrease in fair value of equity and long-term investments.
Cash and cash equivalents: Totaled $570.4 million. Royalty and net product sales receivables totaled $110.6 million as of June 30, 2026, a 25% year-on-year increase compared to $88.3 million for the second quarter of 2025.

Key Business and R&D Highlights

XACDURO® (sulbactam for injection; durlobactam for injection), co-packaged for intravenous use: a targeted antibacterial treatment for patients with hospital-acquired bacterial pneumonia and ventilator-associated bacterial pneumonia (HABP/VABP) caused by susceptible isolates of Acinetobacter baumannii-calcoaceticus complex.
During the second quarter, IST entered into an exclusive distribution and licensing agreement with Dr. Reddy’s Laboratories Ltd., a global pharmaceutical company, for the development and commercialization of XACDURO® in South and Central America, the Caribbean, Russia and Commonwealth of Independent States countries.
Strategic Healthcare Assets
During the second quarter, Innoviva launched Nortiva Bio (a wholly owned subsidiary), to advance the proprietary LYNX™ long-acting oral drug delivery platform. The LYNX platform is designed to transform daily oral medicines into less frequent dosing regimens, including once-weekly or once-monthly therapies. The platform is designed to improve patient adherence, stabilize drug exposure, and enhance clinical and commercial value by enabling less frequent oral dosing.
Nortiva is advancing a lead once-monthly oral drug therapy development program (via support from the Gates Foundation) and building an external partnering pipeline to enable the development of long-acting oral versions of branded and generic therapies.
Capital Allocation
During the second quarter of 2026, Innoviva repurchased 1,403,247 shares for $31.4 million under its $125 million share repurchase program. Since inception, and through the end of the second quarter, the Company has repurchased 2,602,168 shares for $56.4 million, reflecting the Company’s continued confidence in its intrinsic value and long-term outlook.
During the second quarter of 2026, Innoviva continued to support companies in its strategic healthcare asset portfolio with $55.0 million aggregate capital commitment.

About Innoviva

Innoviva is a diversified biopharmaceutical company with a core royalties portfolio, a leading critical care and infectious disease platform known as Innoviva Specialty Therapeutics (“IST”), and a portfolio of strategic investments in healthcare assets. Innoviva’s royalty portfolio includes respiratory assets partnered with Glaxo Group Limited (“GSK”). Innoviva is entitled to receive royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®. Innoviva’s critical care and infectious disease assets under the IST platform include GIAPREZA® (angiotensin II) for increasing blood pressure in adults with septic or other distributive shock, XACDURO® (sulbactam for injection; durlobactam for injection), co-packaged for intravenous use for the treatment of adults with hospital-acquired and ventilator-associated bacterial pneumonia caused by susceptible strains of Acinetobacter baumannii-calcoaceticus, XERAVA® (eravacycline) for the treatment of complicated intra-abdominal infections in adults, ZEVTERA (ceftobiprole), an advanced-generation cephalosporin antibiotic licensed from Basilea Pharmaceutica International Ltd, Allschwil, and NUZOLVENCE® (zoliflodacin), approved by the FDA for the oral treatment of uncomplicated urogenital gonorrhea in adults and pediatric patients 12 years of age and older weighing at least 35 kg. For more information about Innoviva, go to www.inva.com. For information about Innoviva Specialty Therapeutics, go to www.innovivaspecialtytherapeutics.com.

ANORO®, RELVAR® and BREO® are trademarks of the GSK group of companies. ZEVTERA is a trademark of Basilea Pharmaceutica Ltd, Allschwil.

Forward Looking Statements

Forward-looking statements notice

This press release contains certain “forward-looking” statements as that term is defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things, statements relating to goals, plans, objectives, and future events. Innoviva intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “expect”, “goal”, “intend”, “objective”, “opportunity”, “plan”, “potential”, “target” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve substantial risks, uncertainties, and assumptions. These statements are based on the current estimates and assumptions of the management of Innoviva as of the date of this press release and are subject to known and unknown risks, uncertainties, changes in circumstances, assumptions and other factors that may cause the actual results of Innoviva to be materially different from those reflected in the forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, risks related to: expected cost savings; lower than expected future royalty revenue from respiratory products partnered with GSK; the commercialization of RELVAR®/BREO® ELLIPTA®, ANORO® ELLIPTA®, GIAPREZA®, XERAVA®, XACDURO®, ZEVTERA® and NUZOLVENCE® in the jurisdictions in which these products have been approved; the strategies, plans and objectives of Innoviva (including Innoviva’s growth strategy and corporate development initiatives); the timing, manner, and amount of potential capital returns to shareholders; the development of the LYNX® platform; the status and timing of clinical studies, data analysis and communication of results; the potential benefits and mechanisms of action of product candidates; expectations for product candidates through development and commercialization; the timing of regulatory approval of product candidates; and projections of revenue, expenses and other financial items; the timing, manner and amount of capital deployment, including potential capital returns to stockholders; and risks related to the Company’s growth strategy. Other risks affecting Innoviva are described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Innoviva’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q, which are on file with the Securities and Exchange Commission (“SEC”) and available on the SEC’s website at www.sec.gov. Past performance is not necessarily indicative of future results. No forward-looking statements can be guaranteed, and actual results may differ materially from such statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. The information in this press release is provided only as of the date hereof, and Innoviva assumes no obligation to update its forward-looking statements on account of new information, future events or otherwise, except as required by law.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(Unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026		2025
Revenue:
Royalty revenue, net (1)	$56,334	$63,880	$111,501		$121,687
Net product sales	51,771	35,493	93,142		65,772
License and other revenue	11,486	910	12,942		1,456
Total revenue	119,591	100,283	217,585		188,915
Cost of products sold (inclusive of amortization of inventory fair value adjustments)	22,349	10,590	37,956		19,432
Amortization of acquired intangible assets	6,626	6,547	13,180		13,022
Gross profit	90,616	83,146	166,449		156,461
Operating expenses:
Selling, general and administrative	34,571	26,412	67,009		53,903
Research and development	5,190	7,983	10,431		12,379
Total operating expenses	39,761	34,395	77,440		66,282
Income from operations	50,855	48,751	89,009		90,179
Changes in fair values of equity method investments, net	(131,834)	13,082	25,816		(467)
Changes in fair values of equity and long-term investments, net	(29,153)	11,280	4,422		(54,019)
Interest and dividend income	7,599	4,925	18,586		9,463
Interest expense	(5,472)	(4,663)	(10,909)		(9,374)
Other expense, net	(15)	(777)	(381)		(1,773)
Income (loss) before income taxes	(108,020)	72,598	126,543		34,009
Income tax benefit (expense)	24,600	(8,910)	(23,368)		(16,905)
Net income (loss)	$(83,420)	$63,688	$103,175		$17,104
Net income (loss) per share:
Basic	$(1.14)	$1.01	$1.40		$0.27
Diluted	$(1.14)	$0.77	$1.25		$0.24
Shares used to compute net income (loss) per share:
Basic	73,421	62,865	73,789		62,787
Diluted	73,421	84,452	84,529		84,342
(1) Total net revenue is comprised of the following (in thousands):
	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026		2025
	(unaudited)		(unaudited)
Royalties	$59,790	$67,336	$118,413		$128,599
Amortization of capitalized fees	(3,456)	(3,456)	(6,912)		(6,912)
Royalty revenue, net	$56,334	$63,880	$111,501	#	$121,687

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	June 30, 2026	December 31, 2025
Assets
Cash and cash equivalents	$570,388	$550,941
Royalty and product sale receivables	110,616	93,317
Inventory	38,968	39,172
Prepaid expense and other current assets	24,726	28,358
Current portion of ISP Fund investments	8,668	15,727
Property and equipment, net	2,133	1,555
Equity method and equity and long-term investments	660,850	598,223
Capitalized fees	49,226	56,138
Right-of-use assets	10,377	10,929
Goodwill	17,905	17,905
Intangible assets	168,976	182,156
Other assets	39,894	40,744
Total assets	$1,702,727	$1,635,165
Liabilities and stockholders’ equity
Other current liabilities	$39,431	$43,808
Accrued interest payable	1,618	1,618
Deferred revenue	6,015	4,270
Convertible senior notes, due 2028, net	258,454	257,731
Deferred tax liabilities, net	36,739	31,793
Income tax payable, long term	59,932	57,013
Other long term liabilities	67,276	66,091
Stockholders’ equity	1,233,262	1,172,841
Total liabilities and stockholders’ equity	$1,702,727	$1,635,165

Cash Flows Summary

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2026	2025
Net cash provided by operating activities	$87,254	$92,690
Net cash used in investing activities	(18,256)	(1,552)
Net cash provided by (used in) financing activities	(49,551)	1,430
Net change	$19,447	$92,568
Cash and cash equivalents at beginning of period	550,941	304,964
Cash and cash equivalents at end of period	$570,388	$397,532

Investors and media contact

Irwin Tendler

Head of Investor Relations

Executive Director, Corporate Development investors.relations@inva.com