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Inventiva (IVA)
NASDAQ:IVA
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Inventiva (IVA) AI Stock Analysis

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IVA

Inventiva

(NASDAQ:IVA)

Rating:47Neutral
Price Target:
$3.50
▲(5.42%Upside)
Inventiva's overall stock score is primarily impacted by its challenging financial performance and unfavorable valuation. The financial distress, marked by persistent losses and negative margins, is a significant concern. Technical analysis provides a neutral outlook with no strong momentum. The earnings call offers some optimism due to clinical progress and strategic partnerships, which slightly offsets the negative financial indicators.
Positive Factors
Financial Stability
The company's previous funding concerns were resolved with a significant financing, making it an appealing asset with blockbuster potential.
Partnership Potential
Lanifibranor offers a very attractive opportunity in the MASH space, for investors as well as a partner.
Trial Progress
The Phase III NATiV3 trial for lanifibranor has completed full enrollment and is on track to report Phase III top-line data, making it a compelling asset for partnering.
Negative Factors
Funding Conditions
Completion of enrollment in NATiV3 supports satisfaction of certain conditions related to the second tranche of approximately €116 million of structured financing.
Market Competition
Lanifibranor could become the second orally-dosed MASH therapy approved by the FDA, exhibiting a stronger efficacy profile compared to resmetirom.
Trial Risk
Management is highly confident in NATiV3 reaching the target of randomizing 969 patients into the main cohort, paving the way for the trial's top-line data readout.

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

Inventiva Business Overview & Revenue Model

Company DescriptionInventiva (IVA) is a clinical-stage biopharmaceutical company focused on the development of oral small molecule therapies for the treatment of non-alcoholic steatohepatitis (NASH), mucopolysaccharidosis (MPS), and other fibrotic diseases. The company leverages its advanced research and development platform to target key biological pathways involved in fibrosis and inflammation, with its lead product candidate, lanifibranor, currently in advanced-stage clinical trials.
How the Company Makes MoneyInventiva primarily generates revenue through collaborations and licensing agreements with other pharmaceutical companies, where it receives upfront payments, milestone payments, and potential royalties based on the commercial success of its product candidates. Additionally, the company may secure funding through equity offerings and grants to support its research and development activities. Significant partnerships in the pharmaceutical industry can also enhance its revenue streams by providing financial support and shared resources for drug development.

Inventiva Earnings Call Summary

Earnings Call Date:Mar 26, 2025
(Q4-2024)
|
% Change Since: 15.28%|
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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.

Inventiva Financial Statement Overview

Summary
Inventiva is facing substantial financial difficulties across all key financial metrics, with persistent losses, negative margins, and a significant reliance on external financing. This financial instability poses risks to its long-term sustainability.
Income Statement
35
Negative
Inventiva's income statement highlights significant challenges in profitability. The company reports consistent negative net income and EBIT over the years. The revenue growth rate is volatile, with a decrease in the most recent year. Both gross profit and net profit margins are negative, indicating that the company is struggling to cover its costs. EBITDA margin is also highly negative, showcasing operational inefficiencies.
Balance Sheet
30
Negative
Inventiva's balance sheet reveals financial instability with negative stockholders' equity and a high total liabilities figure. The debt-to-equity ratio is not applicable due to negative equity, and return on equity is also negative, reflecting poor returns on shareholders' investments. The equity ratio is negative, further indicating financial distress and a reliance on liabilities.
Cash Flow
40
Negative
The cash flow statement indicates persistent negative operating and free cash flows, suggesting that Inventiva is not generating enough cash from its operations to sustain its business activities. While there is a significant financing cash flow, likely from debt or equity raises, the operating cash flow to net income ratio and free cash flow to net income ratio are weak, pointing towards cash flow challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.20M17.48M12.18M4.19M372.00K
Gross Profit9.20M17.50M11.18M3.18M-474.00K
EBITDA-166.53M-102.04M-57.11M-52.27M-31.77M
Net Income-184.21M-110.43M-54.27M-49.64M-31.62M
Balance Sheet
Total Assets118.97M69.56M116.00M121.98M138.92M
Cash, Cash Equivalents and Short-Term Investments96.56M26.99M87.78M95.38M113.02M
Total Debt54.33M37.49M34.51M10.12M13.25M
Total Liabilities225.61M101.59M70.53M33.12M27.71M
Stockholders Equity-106.65M-32.03M45.48M88.87M111.21M
Cash Flow
Free Cash Flow-86.26M-82.15M-45.49M-48.16M-30.88M
Operating Cash Flow-85.93M-81.61M-44.93M-47.63M-30.59M
Investing Cash Flow8.74M-7.73M8.87M-1.79M-8.56M
Financing Cash Flow145.59M29.08M37.27M25.45M111.67M

Inventiva Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.32
Price Trends
50DMA
3.32
Negative
100DMA
3.27
Positive
200DMA
2.87
Positive
Market Momentum
MACD
<0.01
Negative
RSI
50.84
Neutral
STOCH
41.86
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 3.32 is above the 20-day moving average (MA) of 3.23, below the 50-day MA of 3.32, and above the 200-day MA of 2.87, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 41.86 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 (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$242.52M7.907.22%5.74%24.45%
57
Neutral
$299.02M40.36%12.43%91.67%
54
Neutral
$431.83M-47.44%80.70%46.66%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
52
Neutral
$987.71M-34.26%271.44%26.65%
47
Neutral
$448.55M344.74%-47.32%-26.67%
41
Neutral
$544.39M-39.06%-48.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IVA
Inventiva
3.39
1.11
48.68%
ORKA
Oruka Therapeutics
14.23
-5.58
-28.17%
HRTX
Heron Therapeutics
1.96
-1.14
-36.77%
RGNX
RegenXBio
9.09
-5.30
-36.83%
VERV
Verve Therapeutics
11.13
3.65
48.80%
TRDA
Entrada Therapeutics Inc
6.39
-10.71
-62.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 19, 2025