INVA

Innoviva is a company that is transitioning from a pure royalty-based business to a diversified healthcare company with commercial products and strategic assets. I have rated Innoviva as a buy with a probability-weighted fair value of $35.26 and a base case value of $36.92. This represents a 68.1% upside from here. GSK royalties have been a main source of revenue and are now under pressure. But new therapeutic products have been ramping up to close the gap left by royalties.

Supernus Pharmaceuticals NASDAQ: SUPN and Indivior Pharmaceuticals announced a proposed all-stock, tax-free merger of equals that would create a central nervous system-focused biopharmaceutical company with approximately $2.2 billion in pro forma trailing 12-month net revenue as of June 30, 2026.

WALTHAM, Mass.--(BUSINESS WIRE)--Innoviva Specialty Therapeutics, a subsidiary of Innoviva, Inc. (Nasdaq: INVA), today announced that it has 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® (sulbactam for injection; durlobactam for injection), co-packaged for intravenous use, in South and Central America, the Caribbean, Russia and Commonwealth of Independent S.

BURLINGAME, Calif.--(BUSINESS WIRE)--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 announced that management will participate in the following upcoming investor conferences in June: Goldman Sachs 47th Annual Global Healthcare Conference.

Innoviva (INVA) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.25 per share a year ago.

Merck (MRK) came out with a quarterly loss of $1.28 per share versus the Zacks Consensus Estimate of a loss of $1.51. This compares to earnings of $2.22 per share a year ago.

The price-to-earnings (P/E) ratio is a commonly used metric that provides a snapshot of a company's valuation. The average P/E ratio of stocks in the S&P 500 is around 27X.