Inventiva (IVA) AI Stock Analysis

305 Followers

Top Page

Inventiva

(NASDAQ:IVA)

43Neutral

Inventiva's score reflects its significant financial challenges, especially concerning profitability and solvency. The technical analysis suggests mixed signals, with some upward momentum but overall bearish indicators. Valuation remains unfavorable due to the negative P/E ratio, highlighting the company's struggles with profitability.

Positive Factors

Clinical Trials

Inventiva has completed enrollment of the NATiV3 trial, setting the stage for a definitive topline readout and meeting the requirements to access the second tranche of financing.

Financial Performance

Inventiva received additional €126M in funding, providing a cash runway through the third quarter of 2026.

Strategic Advantage

Lanifibranor could have a significant competitive advantage in the MASH + T2D patient subpopulation if the effects seen in earlier trials are confirmed in NATiV3.

Negative Factors

Market Competition

Lanifibranor could become the second orally-dosed MASH therapy approved by the FDA, exhibiting a stronger efficacy profile compared to resmetirom.

Regulatory Challenges

Completion of enrollment in NATiV3 supports satisfaction of certain conditions related to the second tranche of approximately €116 million of structured financing.

Inventiva (IVA) vs. S&P 500 (SPY)

Market Cap

$270.00M

Dividend YieldN/A

Average Volume (3M)12.12K

Price to Earnings (P/E)―

Beta (1Y)0.59

Revenue Growth17.91%

EPS Growth-10.55%

CountryUS

Employees123

SectorHealthcare

Sector Strength77

IndustryBiotechnology

Share Statistics

EPS (TTM)-3.33

Shares Outstanding95,662,390

10 Day Avg. Volume15,155

30 Day Avg. Volume12,121

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)5.81

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.67

Price Target Upside346.73% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Inventiva Business Overview & Revenue Model

Company DescriptionInventiva S.A., a clinical-stage biopharmaceutical company, focuses on the development of oral small molecule therapies for the treatment of non-alcoholic steatohepatitis (NASH), mucopolysaccharidoses (MPS), and other diseases. Its lead product candidate is Lanifibranor, which has completed Phase IIb clinical trial to treat NASH. The company also develops Odiparcil, which has completed Phase IIa clinical trial for the treatment of MPS VI subtype disease. In addition, it has a pipeline of earlier stage programs in oncology and other diseases. The company has strategic collaboration with AbbVie for the treatment of autoimmune diseases; and Boehringer Ingelheim International GmbH for developing new treatments for idiopathic pulmonary fibrosis. Inventiva S.A. was founded in 2011 and is based in Daix, France.

How the Company Makes MoneyInventiva primarily makes money through the development and commercialization of its pharmaceutical products. Its revenue streams include milestone payments and royalties from licensing agreements with pharmaceutical companies, research and development collaboration agreements, and potential future sales of its proprietary drugs upon regulatory approval. Significant partnerships with other biopharmaceutical firms and research institutions can also contribute to its earnings by providing funding and resources for clinical trials and product development.

Inventiva Financial Statement Overview

Summary

Inventiva demonstrates growth in revenue, but persistent losses and negative equity raise concerns over long-term sustainability. The high leverage and negative cash flow position indicate potential liquidity and solvency risks, necessitating effective financial management and strategic initiatives to improve profitability and balance sheet strength.

Income Statement

Neutral

Inventiva shows a significant increase in revenue over the years, with a TTM revenue of $17.48 million compared to $12.18 million in 2022. However, the company continues to operate at a loss with negative EBIT and net income margins, indicating profitability challenges. The gross profit margin is not meaningful due to negative gross profit in earlier years, and the EBIT margin is significantly negative, reflecting high operational costs relative to revenue.

Balance Sheet

Negative

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity in the latest year, posing significant financial risk. The equity ratio has deteriorated over the years, with equity turning negative in 2023. This indicates potential solvency issues and an increasing reliance on debt financing.

Cash Flow

Negative

The cash flow statement highlights a negative free cash flow trend, with TTM values at -$82.15 million, worsening from -$45.49 million in 2022. The operating cash flow to net income ratio is not favorable, indicating challenges in generating cash from operations relative to net losses. The company's ability to convert net income into free cash flow remains constrained.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
19.27M	17.48M	12.18M	4.19M	372.00K	7.00M
	Gross Profit
18.72M	17.50M	11.18M	3.18M	-474.00K	7.00M
	EBIT
-99.95M	-102.71M	-57.11M	-52.11M	-29.72M	-30.31M
	EBITDA
-99.80M	-102.04M	-57.11M	-52.27M	-31.77M	-28.36M
	Net Income Common Stockholders
-104.19M	-110.43M	-54.27M	-49.64M	-31.62M	-30.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.87M	26.99M	87.78M	95.38M	113.02M	35.84M
	Total Assets
48.86M	69.56M	116.00M	121.98M	138.92M	56.96M
	Total Debt
627.60K	37.49M	34.51M	10.12M	13.25M	2.10M
	Net Debt
-24.24M	10.57M	-52.22M	-76.43M	-92.43M	-33.74M
	Total Liabilities
13.14M	101.59M	70.53M	33.12M	27.71M	15.57M
	Stockholders Equity
35.72M	-32.03M	45.48M	88.87M	111.21M	41.39M
Cash Flow		Free Cash Flow
-36.69M	-82.15M	-45.49M	-48.16M	-30.88M	-28.54M
	Operating Cash Flow
-36.38M	-81.61M	-44.93M	-47.63M	-30.59M	-28.40M
	Investing Cash Flow
-29.00K	-7.73M	8.87M	-1.79M	-8.56M	-826.00K
	Financing Cash Flow
31.23M	29.08M	37.27M	25.45M	111.67M	8.38M

Inventiva Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.06

Price Trends

50DMA

2.78

Positive

100DMA

2.61

Positive

200DMA

2.50

Positive

Market Momentum

MACD

0.04

Positive

RSI

52.49

Neutral

STOCH

56.67

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IVA, the sentiment is Positive. The current price of 3.06 is above the 20-day moving average (MA) of 2.97, above the 50-day MA of 2.78, and above the 200-day MA of 2.50, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IVA.

Inventiva Risk Analysis

Inventiva disclosed 83 risk factors in its most recent earnings report. Inventiva reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Inventiva Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARDX	60 Neutral	$1.08B	―	-23.01%	―	168.06%	44.66%
AKRO	60 Neutral	$2.92B	―	-39.22%	―	―	-31.37%
MDGL	54 Neutral	$6.94B	―	-80.35%	―	―	-10.89%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
VNDA	48 Neutral	$241.43M	―	-3.49%	―	3.18%	-835.29%
IVA	43 Neutral	$270.00M	―	344.74%	―	17.91%	-10.55%
RDHL	41 Neutral	$2.49M	―	1155.92%	―	―	―

* Healthcare Sector Average

Performance Comparison

IVA

Inventiva

3.06

-0.80

-20.73%

MDGL

Madrigal Pharmaceuticals

314.39

65.75

26.44%

VNDA

Vanda

4.14

-0.37

-8.20%

RDHL

RedHill Biopharma

1.95

-11.15

-85.11%

ARDX

Ardelyx

4.55

-2.77

-37.84%

AKRO

Akero Therapeutics

36.73

13.60

58.80%

Inventiva Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: 6.25% | Next Earnings Date: Sep 25, 2025

Earnings Call Sentiment Positive

The earnings call highlighted significant progress in the clinical development of lanifibranor, positive trial results, and a strong financial position bolstered by recent financing activities. However, challenges such as workforce reduction and decreased revenue were noted. The sentiment remains cautiously optimistic with strategic partnerships and governance strengthening, despite financial and operational challenges.

Highlights

Significant Progress in Lanifibranor Clinical Development

Completed screening of Phase 3 NATiV3 trial in early January 2025, targeting recruitment completion in H1 2025. Three data monitoring committee meetings with positive recommendations for continuation without protocol modification.

Positive Results from LEGEND Trial

Statistically significant reduction in HBA1C with lanifibranor alone and in combination, improved insulin sensitivity, and significant improvement in markers of liver injury. Combination with empagliflozin mitigates weight gain.

Strong Financial Position

Raised approximately $184 million in gross proceeds from several financing operations, including a $125 million structured financing. Cash position at the end of 2024 was €96.6 million, a net positive variance of close to €61 million from the previous year.

Strategic Partnerships and Market Expansion

Partner Hepalys launched clinical development of lanifibranor in Japan. Licensing agreements in place in Japan, South Korea, and China position lanifibranor as a leading oral drug in MASH in these regions.

Strengthened Governance and Team

Reinforced Board of Directors with three new members, including Mark Pruzanski as Chairman. Reinforced development team to prepare for regulatory filing and potential commercial launch of lanifibranor.

Lowlights

Reduction in Workforce

Decision to stop all pre-clinical activities not related to lanifibranor, leading to a reduction of approximately 50% of the workforce.

Decreased Revenue

Recorded revenues of €9.2 million in 2024, compared to €17.5 million in 2023, primarily due to the timing of milestone payments.

Increased Net Loss

Net loss for the full year 2024 was €184.2 million, compared to €110.4 million in 2023, driven by non-cash financial items and increased expenses.

Company Guidance

During the Inventiva Full Year 2024 Financial Results Webcast and Conference Call, key guidance and metrics were provided by the company's leadership. CEO Frédéric Cren highlighted the significant progress in the clinical development of lanifibranor, emphasizing the closing of screening for the Phase 3 NATiV3 trial and targeting recruitment completion in H1 2025. The topline results are expected in the second half of 2026, with potential U.S. approval by March. The call also addressed the company's financial position, with a cash runway extending to September 2025, and potentially September 2026 after securing additional financing. The 2024 financial highlights included a cash position of €96.6 million, revenues of €9.2 million, and a net loss of €184.2 million. The company also discussed strategic decisions, such as focusing resources on lanifibranor development, which led to a reduction in workforce by approximately 50%. The call concluded with a discussion on potential partnerships and long-term plans for commercialization.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.