Innoviva, Inc. (INVA): Business Model Canvas [Dec-2025 Updated]

You're looking at a company, Innoviva, Inc., that has smartly engineered a dual-engine business model as of late 2025. Honestly, it's a fascinating setup: you have the bedrock of stable, high-margin cash flow coming from the established respiratory royalties-think $63.4 million gross in Q3 2025-which funds the high-stakes pivot into critical care and infectious diseases through Innoviva Specialty Therapeutics. This means they are using that predictable income to aggressively advance pipeline assets, like zoliflodacin heading into its December 15, 2025 PDUFA date, all while sitting on a strong balance sheet with $397.5 million in cash and equivalents as of June 30, 2025. I've seen many companies try this pivot, but the structure here is unique; dive into the full Business Model Canvas below to see exactly how they align their partnerships, resources, and revenue streams to manage this balancing act between stability and high-reward biotech development.

Innoviva, Inc. (INVA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Innoviva, Inc.'s operations as of late 2025. These aren't just handshake deals; they are structured financial and commercial arrangements that drive significant revenue and pipeline progress.

The royalty stream from Glaxo Group Limited (GSK) remains a bedrock of Innoviva, Inc.'s financial stability. This revenue is tied to the performance of key respiratory products. For the third quarter of 2025, Innoviva, Inc. reported gross royalty revenue from GSK of $63.4 million, up from $60.5 million in the third quarter of 2024. This royalty income is derived from sales of ANORO® ELLIPTA® and RELVAR®/BREO® ELLIPTA®. To put that in context, this single stream represented a substantial portion of the total revenue of $107.8 million reported for Q3 2025.

Innoviva, Inc.'s specialty therapeutics platform relies heavily on commercialization partnerships. The exclusive U.S. commercialization agreement for ZEVTERA® (ceftobiprole) with Basilea Pharmaceutica Ltd. is a prime example. Innoviva, Inc. anticipates launching ZEVTERA® in the U.S. mid-2025, following the December 2024 agreement.

Here's a quick look at the financial structure of the Basilea Pharmaceutica Ltd. deal:

Financial Component	Amount/Range	Partner Receiving
Upfront Payment	$4 million	Basilea Pharmaceutica Ltd.
Tiered Royalties on Net Sales	High-teens to mid-twenties percentage range	Basilea Pharmaceutica Ltd.
Sales Milestones Potential	Up to $223 million	Basilea Pharmaceutica Ltd.
Q2 2025 U.S. Net Product Sales Contribution	$0.3 million	Innoviva, Inc.

The development of zoliflodacin, a potential first-in-class oral treatment for uncomplicated gonorrhea, is a crucial public-private collaboration with The Global Antibiotic Research & Development Partnership (GARDP). Innoviva Specialty Therapeutics (IST), a subsidiary, accepted the New Drug Application (NDA) by the FDA on June 10, 2025. The Prescription Drug User Fee Act (PDUFA) target action date is set for December 2025. The licensing split is defined by geography:

• GARDP holds the license for 150 countries globally, primarily low- and middle-income countries.
• IST holds the license in the U.S., Europe, Japan, and China.

Innoviva, Inc. also actively manages a portfolio of strategic equity investments, which contribute to the balance sheet through fair value changes. As of September 30, 2025, the total value of these strategic assets stood at $483.0 million. The market movement in these holdings was significant in Q3 2025.

The financial impact from these equity holdings in the third quarter of 2025 was a net favorable change in fair values totaling $62.3 million. This was largely driven by the share price appreciation of Armata Pharmaceuticals and other investments. You should note the recent capital deployment into these partners:

• $17.5 million invested in Beacon Biosignals, Inc. Series B Preferred Stock in October 2025.
• $15.0 million invested in a term loan to Armata Pharmaceuticals in August 2025.

Finance: draft 13-week cash view by Friday.

Innoviva, Inc. (INVA) - Canvas Business Model: Key Activities

You're looking at the core engine driving Innoviva, Inc. (INVA) right now, which is a mix of managing legacy cash flow and aggressively building out the specialty therapeutics side. Here's the quick math on what management is actively doing to keep the lights on and grow the enterprise value as of late 2025.

Managing the durable respiratory royalty portfolio to ensure consistent cash flow.

This activity is about harvesting the value from the long-acting inhaled products partnered with GlaxoSmithKline (GSK). The resilience of this stream is key to funding the rest of the business. For the third quarter ended September 30, 2025, gross royalty revenue from GSK totaled $63.4 million. This represented a 5% growth compared to the third quarter of 2024, showing the portfolio is still expanding modestly. To give you a sense of the quarterly flow, Q2 2025 royalty revenue was $67.3 million. This consistent cash generation underpins the entire structure.

Commercialization and sales of critical care and infectious disease products via Innoviva Specialty Therapeutics (IST).

This is where the growth story is playing out, focusing on critical care and infectious disease products. Innoviva Specialty Therapeutics (IST) delivered its third consecutive quarter of significant expansion. For Q3 2025, U.S. net product sales reached $29.9 million, marking a 52% year-over-year growth. Total net product sales for the quarter were $47.3 million, which included $17.4 million from ex-U.S. sales. The launch of ZEVTERA® (ceftobiprole) in the U.S. in July 2025 is a major focus for this segment.

Here's a breakdown of the recent IST U.S. net product sales performance:

Period Ended	U.S. Net Product Sales (Millions USD)	Year-over-Year Growth
March 31, 2025 (Q1)	$26.4	52%
June 30, 2025 (Q2)	$29.0	54%
September 30, 2025 (Q3)	$29.9	52%

The Q3 2025 U.S. sales breakdown included specific contributions from GIAPREZA at $18.2 million, XACDURO at $8.5 million, XERAVA at $3.2 million, and early ZEVTERA sales of $0.1 million.

Strategic capital allocation and investment in external healthcare assets.

Innoviva, Inc. is actively deploying its cash flow, which totaled $476.5 million in cash and cash equivalents as of September 30, 2025. The Board authorized a new share repurchase program of up to $125.0 million. The overall portfolio of strategic assets held through subsidiaries was valued at $483.0 million as of September 30, 2025.

Recent capital deployment actions include:

• - Investment of $15.0 million in a term loan to Armata Pharmaceuticals in August 2025.
• - Upfront payment of $10.2 million to acquire a drug delivery platform from Lyndra Therapeutics in September 2025.
• - Investment of $17.5 million in Beacon Biosignals, Inc. Series B Preferred Stock in October 2025.

The net favorable change in fair values of equity and long-term investments for Q3 2025 was $62.3 million.

Advancing pipeline assets through regulatory milestones, like the zoliflodacin PDUFA date of December 15, 2025.

Advancing the pipeline, specifically zoliflodacin for uncomplicated gonorrhea, is a defined near-term catalyst. The U.S. Food and Drug Administration (FDA) assigned a target Prescription Drug User Fee Act (PDUFA) action date of December 15, 2025. The New Drug Application (NDA) for this single-dose oral antibiotic was granted Priority Review. Furthermore, the FDA indicated in its Day-74 letter that it did not plan to hold an Advisory Committee meeting for the zoliflodacin NDA. This asset is being developed in partnership with The Global Antibiotic Research & Development Partnership (GARDP).

Finance: draft 13-week cash view by Friday.

Innoviva, Inc. (INVA) - Canvas Business Model: Key Resources

You're looking at the core assets that really power Innoviva, Inc. (INVA) right now. These aren't just line items; they are the engines driving the company's diversified model, which blends stable royalties with high-growth specialty therapeutics.

• - Core respiratory royalty portfolio, generating $63.4 million gross revenue in Q3 2025.
• - Portfolio of commercialized critical care drugs (GIAPREZA®, XACDURO®, XERAVA®, ZEVTERA®).
• - Strong balance sheet with $476.5 million in cash and equivalents as of September 30, 2025.
• - Strategic healthcare asset portfolio valued at $483.0 million as of September 30, 2025.
• - Proprietary long-acting oral drug delivery platform acquired in September 2025.

The royalty stream from Glaxo Group Limited (GSK) remains the bedrock of stability. That Q3 2025 gross royalty revenue of $63.4 million shows the resilience of the inhaled respiratory products like RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®.

Then you have the growth engine, Innoviva Specialty Therapeutics (IST). This platform is anchored by four marketed products, and the U.S. sales figures for Q3 2025 give you a clear picture of where the current traction is:

Product	Q3 2025 U.S. Net Product Sales
GIAPREZA®	$18.2 million
XACDURO®	$8.5 million
XERAVA®	$3.2 million
ZEVTERA®	$0.1 million

To be fair, ZEVTERA® was just launched in the U.S. in July 2025, so that $0.1 million is just the start. The total U.S. net product sales for IST in the quarter hit $29.9 million, which was a 52% year-over-year jump.

Financially, the company is definitely well-fortified. You saw cash and equivalents at $397.5 million at the end of Q2 2025 (June 30, 2025), but by the end of Q3 2025 (September 30, 2025), that figure grew to $476.5 million. That strong liquidity supports their capital deployment strategy, including the announced $125 million share repurchase program.

The strategic investments are also a major asset class. The portfolio of strategic healthcare assets, which includes significant stakes in companies like Armata Pharmaceuticals, was valued at $483.0 million on September 30, 2025. This is up from $449.3 million just three months prior on June 30, 2025, showing active value creation in that segment.

Finally, the development pipeline itself is a resource. While I don't have a specific acquisition cost for the proprietary long-acting oral drug delivery platform announced for September 2025, the focus on oral delivery is clear, especially with the investigational, first-in-class, single oral dose antibiotic, zoliflodacin, having a PDUFA target action date of December 15, 2025.

Finance: draft 13-week cash view by Friday.

Innoviva, Inc. (INVA) - Canvas Business Model: Value Propositions

For shareholders, the primary value proposition centers on the stable, high-margin cash flow from long-term respiratory drug royalties. This stream provides a foundation of predictable revenue, which the company uses to fund growth and return capital.

Here's a quick look at the royalty performance as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Gross Royalty Revenue (from GSK)	$63.4 million	Represents 5% growth year-over-year from Q3 2024 ($60.5 million)
LTM Anoro & Breo Royalty Revenue	$258M	Long-term revenue anchor from inhaled respiratory products
Cash and Cash Equivalents	$476.5 million	As of September 30, 2025, supporting operations and deployment
New Share Repurchase Program	Up to $125.0 million	Authorized by the Board, underscoring confidence in cash flows

The Innoviva Specialty Therapeutics (IST) platform delivers value through innovative, life-saving critical care and infectious disease treatments for hospitals. This segment is showing rapid commercial traction.

The IST business delivered:

• U.S. net product sales of $29.9 million in Q3 2025.
• This represented a 52% year-over-year growth in U.S. net product sales.
• ZEVTERA® (ceftobiprole), launched in mid-2025, contributed $0.1 million in U.S. net sales in Q3 2025.
• Both ZEVTERA® and XACDURO® were nominated for the 2025 Prix Galien USA Award.

Innoviva, Inc. provides value through its capital deployment expertise to acquire and grow undervalued healthcare assets. This is a disciplined approach to maximizing shareholder returns beyond the core royalty stream.

Recent capital deployment actions include:

• Acquisition of a long-acting oral drug delivery platform from Lyndra Therapeutics for an upfront payment of $10.2 million in September 2025.
• Investment of $15.0 million in a term loan to Armata Pharmaceuticals in August 2025.
• Strategic assets portfolio valued at $483.0 million as of September 30, 2025.

A significant part of the value proposition is addressing unmet medical need with new antibiotics like ZEVTERA® and zoliflodacin. This pipeline focus targets high-need areas in infectious disease.

For zoliflodacin, the progress is substantial:

• The New Drug Application (NDA) for zoliflodacin is under Priority Review by the FDA.
• The Prescription Drug User Fee Act (PDUFA) target action date is set for December 15, 2025.
• If approved, zoliflodacin would be the first new oral antibiotic for uncomplicated gonorrhea in decades.

ZEVTERA® itself addresses the urgent global public health threat of drug-resistant Acinetobacter baumannii-calcoaceticus complex with XACDURO®, and is the first and only FDA-approved cephalosporin for MRSA-related Staphylococcus aureus bacteremia (SAB).

Finance: draft 13-week cash view by Friday.

Innoviva, Inc. (INVA) - Canvas Business Model: Customer Relationships

You're looking at how Innoviva, Inc. (INVA) manages its distinct customer groups, which really fall into three very different buckets: the big pharma partner, the hospital-focused specialty group, and the shareholders.

The relationship with Glaxo Group Limited (GSK) is definitely the most automated. This is the low-touch royalty stream from their established respiratory assets. It's about consistent, predictable cash flow, not direct sales engagement. For instance, in the third quarter of 2025, Innoviva, Inc. generated gross royalty revenue from GSK of $63.4 million, which was up from $60.5 million in the third quarter of 2024. To give you a sense of the recent trend, the first quarter of 2025 saw $61.3 million in gross royalty revenue from GSK, while the second quarter was slightly higher at $67.3 million. The full year 2024 royalty revenue from GSK totaled $255.6 million. This stream is the bedrock, showing resilience with a 5% growth compared to the prior year in Q3 2025.

The Innoviva Specialty Therapeutics (IST) segment, however, requires a dedicated, high-touch approach. This is where they interact directly with hospital systems and prescribers for their critical care and infectious disease products. This segment is clearly scaling fast. For the third quarter of 2025, IST achieved U.S. net product sales of $29.9 million, marking a 52% year-over-year growth. That follows the second quarter of 2025, where U.S. net product sales hit $29.0 million, representing 54% year-over-year growth. The first quarter of 2025 showed U.S. net product sales of $26.4 million, also a 52% increase from the prior year. The full year 2024 U.S. net product sales for IST were $80.9 million. You see this high-touch effort reflected in the product launches, like ZEVTERA®, which saw its first commercial sales in July 2025.

The third key relationship is with the capital markets and shareholders. Management's communication here focuses heavily on capital deployment to enhance shareholder value. The latest major action was the authorization by the Board of Directors in November 2025 of a new share repurchase program of up to $125.0 million. What's important is that this program has no termination date, meaning it's a standing option for management to use when they see fit. This action is supported by strong recent performance; third quarter 2025 net income reached $89.9 million, leading to basic earnings per share of $1.30 from continuing operations, a huge jump from $0.02 in Q3 2024. The company's overall asset base, which includes strategic investments, was valued at $483.0 million as of September 30, 2025.

Here's a quick look at how the two operating segments contribute to the overall customer value proposition and revenue:

Customer Relationship Metric	Royalty Stream (GSK)	Specialty Therapeutics (IST - Hospital)
Q3 2025 Revenue/Sales Amount	$63.4 million (Gross Royalty Revenue)	$29.9 million (U.S. Net Product Sales)
Year-over-Year Growth (Q3 2025 vs Q3 2024)	5% Growth (Royalties Portfolio)	52% Growth (U.S. Sales)
Relationship Type	Automated, Low-Touch	Dedicated, High-Touch Sales/Medical Affairs

The focus on shareholder relations is also evident in the balance sheet strength, which underpins these capital allocation decisions. You can see the cash position was $476.5 million as of September 30, 2025.

The different customer types require completely different engagement models:

• - GSK relationship: Managed via contract administration for royalty receipts.
• - Hospital Customers (IST): Requires field force deployment for product adoption and support.
• - Shareholders: Engaged through capital return policies and financial transparency.

The IST segment's growth, exceeding 50% year-over-year in U.S. sales for three consecutive quarters in 2025, shows the high-touch model is driving adoption for newer hospital-focused products.

Finance: draft next quarter's cash flow projection incorporating the $125 million buyback authorization by next Tuesday.

Innoviva, Inc. (INVA) - Canvas Business Model: Channels

You're looking at how Innoviva, Inc. (INVA) gets its value propositions-both the royalty stream and its specialty therapeutics-to the relevant parties. It's a dual-track approach, relying on a major partner for one revenue source and building out its own direct capabilities for the other. Honestly, the numbers from late 2025 show this split is working well for cash flow.

Pharmaceutical partner's (GSK) global commercial infrastructure for respiratory products

The primary channel for Innoviva's legacy respiratory royalty stream is the global commercial infrastructure of Glaxo Group Limited (GSK). Innoviva, Inc. does not directly sell these products; instead, it receives payments based on GSK's reach. This channel provides a durable, high-margin revenue base, which is key to funding the growth of the therapeutics platform.

Here's what that royalty channel delivered in the first three quarters of 2025:

• - Q3 2025 gross royalty revenue from GSK was $63.4 million.
• - Q2 2025 gross royalty revenue from GSK was $67.3 million.
• - Q1 2025 gross royalty revenue from GSK was $61.3 million.

Innoviva Specialty Therapeutics (IST) direct sales force to U.S. hospitals and critical care centers

For its Innoviva Specialty Therapeutics (IST) segment, the company uses a direct commercial channel focused on the U.S. hospital and critical care setting. While the exact headcount of the sales force isn't public, their activity drives significant U.S. net product sales across their marketed portfolio, which includes GIAPREZA®, XACDURO®, XERAVA®, and the newly launched ZEVTERA®.

The performance of this direct sales channel shows strong traction, especially with new product introductions. For example, U.S. net product sales for IST hit $29.9 million in the third quarter of 2025, marking a 52% year-over-year growth for the third consecutive quarter. This growth is the direct result of this sales effort reaching the target customer base.

Investor presentations and financial filings for capital market communication

Communicating with the capital markets-investors, analysts, and potential partners-is a critical channel for securing funding and maintaining valuation. This is executed through formal SEC filings, like the Form 8-K reports, and investor presentations, such as the one detailing the Q3 2025 results. These documents serve as the official channel for disclosing financial health and strategic direction.

Key figures communicated through these channels as of September 30, 2025, include:

Financial Metric	Amount / Value (as of Q3 2025)
Cash and Cash Equivalents	$476.5 million
Royalty and Net Product Sales Receivables	$93.5 million
Total Revenue (Q3 2025)	$107.8 million
Net Income (Q3 2025)	$89.9 million

Licensing and distribution agreements for ex-U.S. product sales

Innoviva, Inc. also utilizes licensing and distribution agreements to access ex-U.S. markets for its specialty products, alongside the royalty channel for GSK products globally. The ex-U.S. net product sales for IST were $17.4 million in the third quarter of 2025.

A key example of this channel strategy is the exclusive distribution and license agreement with Basilea Pharmaceutica Ltd. for ZEVTERA® in the U.S., which was signed in December 2024. Under that deal, Basilea receives a $4 million upfront payment plus tiered royalties and milestones on U.S. net sales. This structure allows Innoviva, Inc. to leverage external expertise for specific product launches while retaining a revenue share.

Innoviva, Inc. (INVA) - Canvas Business Model: Customer Segments

You're looking at the key groups Innoviva, Inc. (INVA) serves across its diversified structure, which includes both the durable royalties platform and the specialty therapeutics arm. The numbers here reflect performance through the third quarter of 2025, giving us a solid, near-term view.

The most consistent revenue source comes from large pharmaceutical partners, specifically those paying royalties on inhaled respiratory products. This segment provides the bedrock cash flow for Innoviva, Inc. (INVA).

Customer Type	Product/Agreement	Q2 2025 Royalty Revenue	Q3 2025 Royalty Revenue
Global Pharmaceutical Companies	Royalties from Glaxo Group Limited (GSK) on RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® sales	$67.3 million	$63.4 million

Another critical segment is the U.S. healthcare system, comprising hospitals and critical care physicians who use Innoviva Specialty Therapeutics (IST) products for serious infections. This group is growing rapidly as IST commercializes its portfolio.

• U.S. net product sales for IST products grew to $29.0 million in Q2 2025 and then to $29.9 million in Q3 2025.
• The Q3 2025 U.S. net product sales represented a 52% year-over-year growth.
• IST launched its fourth product, ZEVTERA® (for MRSA-related Staphylococcus aureus bacteremia), in the U.S. in July 2025.
• XACDURO® serves patients with hospital-acquired/ventilator-associated bacterial pneumonia caused by Acinetobacter.

We also must account for the financial community, which includes institutional and activist investors. These stakeholders are focused on capital deployment and asset realization, which directly influences corporate actions like share repurchases.

Here's the quick math on capital deployment focus:

• Innoviva, Inc. announced a $125 million share repurchase program in the third quarter of 2025.
• The company's cash position strengthened, moving from $397.5 million in cash and cash equivalents as of June 30, 2025, to $476.5 million as of September 30, 2025.
• A representative linked to activist investment strategy, Mr. DiPaolo, has served on the board of directors since February 2023.

Finally, public health organizations form a distinct segment, particularly in the development and access of novel antibiotics. Innoviva Specialty Therapeutics actively partners with these groups to address global threats like antimicrobial resistance.

The collaboration with the Global Antibiotic Research and Development Partnership (GARDP) is central here:

• GARDP sponsored and led the Phase 3 trial for zoliflodacin, an investigational single-dose oral antibiotic for gonorrhea.
• The U.S. Food and Drug Administration (FDA) set the PDUFA target action date for the zoliflodacin New Drug Application (NDA) as December 15, 2025.
• GARDP is working to accelerate access for zoliflodacin in its territory, which covers more than 160 countries globally, focusing on low and middle income countries (LMICs).

Innoviva, Inc. (INVA) - Canvas Business Model: Cost Structure

You're looking at the expenses Innoviva, Inc. incurs to run its diversified model, which blends durable royalty streams with an active therapeutics platform. The cost structure is heavily influenced by pipeline advancement and commercial build-out. For instance, the high research and development (R&D) spend necessary for late-stage assets like zoliflodacin directly impacted recent operating results. Innoviva, Inc. reported that its third quarter 2025 income from operations was $34.6 million, a 20% decrease from the $43.2 million reported in the third quarter of 2024, primarily due to a non-recurring expense related to research and development, signaling significant investment in the pipeline.

Sales and marketing costs are now a key component as Innoviva Specialty Therapeutics (IST) commercializes its infectious disease portfolio, notably the U.S. launch of ZEVTERA, which began in mid-2025. While the upfront licensing cost to Basilea Pharmaceutica for U.S. marketing rights was $4 million, the ongoing sales and marketing spend supports the initial market penetration. Early results show ZEVTERA contributing to U.S. net product sales, posting $0.1 million in the third quarter of 2025.

The management of the holding company structure necessitates General and Administrative (G&A) expenses to oversee the royalties portfolio, the IST segment, and the portfolio of strategic investments. While a specific G&A figure isn't isolated here, the overall operating expenses are managed against the backdrop of significant cash on hand, which totaled $476.5 million as of September 30, 2025, providing a buffer for these overheads.

Innoviva, Inc. actively deploys capital for acquiring new strategic assets, which adds another layer to the cost structure. This is a deliberate strategy to enhance the portfolio beyond the core royalty base. A concrete example of this deployment was the September 2025 transaction to acquire a proprietary long-acting oral drug delivery platform and related assets from Lyndra Therapeutics, Inc., which included an upfront payment of $10.2 million, plus potential future milestone and royalty payments.

Here is a quick look at some of the specific, identifiable costs and capital deployments from the recent period:

Cost Category/Event	Specific Amount/Data Point	Period/Date
Strategic Asset Acquisition (Lyndra Upfront)	$10.2 million	September 2025
ZEVTERA U.S. Licensing Upfront Payment	$4.0 million	Prior to launch (Dec 2024 agreement)
Impact of R&D on Operating Income	20% decrease in Income from Operations	Q3 2025 vs Q3 2024
ZEVTERA U.S. Net Product Sales	$0.1 million	Q3 2025
Strategic Investment Deployment (Armata Loan)	$15.0 million	August 2025

The company's cost profile reflects its dual nature: sustaining the IST platform while making targeted, large-scale investments. The R&D spend is clearly weighted toward late-stage assets, as evidenced by the zoliflodacin NDA submission and Priority Review status, which necessitates final-stage preparation costs. You should watch the G&A closely, as managing a holding company with multiple subsidiaries and investment vehicles inherently carries complexity and associated overhead.

Innoviva, Inc. (INVA) - Canvas Business Model: Revenue Streams

You're looking at the core ways Innoviva, Inc. (INVA) brings in cash right now, which is a mix of legacy royalty streams and growing specialty therapeutics sales. The structure is definitely anchored by the durable royalties portfolio, but the specialty arm, Innoviva Specialty Therapeutics (IST), is showing significant acceleration.

The most recent quarterly data from the third quarter of 2025 shows the overall revenue picture, which hit $107.8 million total. This revenue is segmented across a few key areas that you need to track closely.

The foundation remains the royalty stream. This comes from collaboration partners marketing Innoviva's legacy products, primarily inhaled respiratory therapies originally developed by its former affiliate and now marketed by GlaxoSmithKline (GSK). For Q3 2025, this was a very solid contributor.

• - Royalty revenue from GSK respiratory products (Q3 2025 gross): $63.4 million.
• - This represented a 5% year-over-year increase for the portfolio.

Next up is the direct revenue from Innoviva Specialty Therapeutics (IST), which focuses on critical care and infectious disease products. This segment is growing fast, showing a 52% year-over-year increase in U.S. net product sales for Q3 2025. The total net product sales for IST in Q3 2025 were substantial.

Here is the breakdown of the IST product sales for the third quarter of 2025:

Revenue Stream Component	Q3 2025 Amount
Net product sales from IST's critical care portfolio (Total)	$47.3 million
U.S. Net Product Sales (Total)	$29.9 million
Ex-U.S. Product Sales	$17.4 million

The U.S. sales were made up of several key products, which is helpful context for understanding the $29.9 million figure. You can see the contribution from the newer launches in that number, too.

• - GIAPREZA® contributed $18.2 million.
• - XACDURO® contributed $8.5 million.
• - XERAVA® contributed $3.2 million.
• - Early ZEVTERA® sales contributed $0.1 million.

Beyond the core operating revenues, Innoviva, Inc. (INVA) also generates income from its strategic positioning as a diversified holding company with a portfolio of strategic healthcare assets. This can be lumpy, depending on market movements, but the second quarter of 2025 showed a significant positive impact from these holdings.

For the second quarter of 2025, the financial results included these non-operating items:

• - Gains and losses from strategic equity and long-term investments (Q2 2025 net favorable change): $24.4 million.
• - License and other income, including milestone payments (Q2 2025): $910,000.

To be fair, the Q3 2025 report showed a much larger favorable change of $62.3 million from equity and long-term investments, which drove the massive net income that quarter, but the Q2 number you asked for was $24.4 million. The company ended Q3 2025 with cash and cash equivalents totaling $476.5 million. Finance: draft 13-week cash view by Friday.