Innoviva (INVA) has received a new Sell rating, initiated by Goldman Sachs analyst, Asad Haider.
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Asad Haider has given his Sell rating due to a combination of factors affecting Innoviva’s future performance. While the company has demonstrated strong execution in recent years, particularly through its strategic use of cash flows from GSK’s respiratory product royalties to build a critical care and infectious disease platform, the expectations for future performance have increased significantly.
Looking ahead, Haider anticipates challenges as the 2031 royalty-related patent cliff approaches, which historically leads to a compression in stock multiples about five years in advance. Additionally, the GSK royalties, which constitute a substantial portion of Innoviva’s revenues, are expected to face loss of exclusivity and regulatory pressures. This places greater reliance on the IST business to drive growth, but Haider notes a difficult commercial landscape for critical care and infectious disease drugs. Furthermore, the anticipated 2026 pipeline product launch may struggle to leverage Innoviva’s existing commercial platform and will face competition from generic alternatives.