Innoviva initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of Innoviva (INVA) with an Overweight rating. Innoviva has a unique business model that consists of a portfolio of royalties and healthcare assets that includes royalties coming from GSK (GSK) respiratory products, a critical care and infectious disease platform known as Innoviva Specialty Therapeutics, and a portfolio of strategic investments in healthcare assets, the analyst tells investors in a research note. The firm expects royalties from GSK to generate over $1B over the next five years and expects IST to generate over $1B of sales by 2033. Cantor said it would not be surprised if the company considers a roll-up of another underappreciated industry like it did with IST.