Cantor Raises Innoviva Target to $32 After Q4 Beat on China XacDuro Builds
Results highlight a shift toward the growing IST platform as royalties remain resilient.
Overview
- Innoviva reported fiscal Q4 revenue of $114.6 million, which Cantor said topped expectations due to continued XacDuro inventory builds in China that could lift 2026-plus royalties and milestones.
- Durable royalty revenue totaled $58.4 million in Q4 and $250.3 million for full-year 2025, according to company disclosures.
- IST U.S. net product sales reached $33.9 million in Q4 and $119.2 million for 2025, reflecting 47% year-over-year growth.
- The IST portfolio gained a new asset with U.S. FDA approval of NUZOLVENCE, described as a first-in-class treatment for uncomplicated urogenital gonorrhea.
- Management initiated a $125 million share repurchase program and outlined a three-part model spanning royalties, a growing IST commercial platform, and strategic healthcare investments.