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Inventiva SA ADR (IVA)
:IVA
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Inventiva
(NASDAQ:IVA)
Rating:55Neutral
Price Target:
$4.00
▼(-0.50% Downside)
Positive Factors
Clinical 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.
Competitive Advantage
Lanifibranor is complementary when combined with GLP-1s and SGLT2 class drugs, which is significant since a large percentage of MASH patients also have T2D.
Financial Stability
The company's previous funding concerns were resolved with a significant financing, making it an appealing asset with blockbuster potential.
Negative Factors
Clinical Trial Design
The 'double-hit' on primary endpoint will also likely to lead to a much lower placebo rate in the clinical trial.
Financial Dependency
Completion of enrollment in NATiV3 supports satisfaction of certain conditions related to the second tranche of approximately €116 million of structured financing.
Market Competition
No other developers have any investigational MASH agent with trials specifically designed to treat this patient group.
Inventiva (IVA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$488.33M
Dividend YieldN/A
Average Volume (3M)19.25K
Price to Earnings (P/E)―
Beta (1Y)0.09
Revenue Growth-47.32%
EPS Growth-26.67%
CountryUS
Employees114
SectorHealthcare
Sector Strength43
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.82
Shares Outstanding139,151,280
10 Day Avg. Volume25,524
30 Day Avg. Volume19,250
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.19
Enterprise Value/Revenue9.95
Enterprise Value/Gross Profit9.95
Enterprise Value/Ebitda-0.55
Forecast
1Y Price Target
$13.67Price Target Upside240.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Inventiva Business Overview & Revenue Model
Company DescriptionInventiva (IVA) is a clinical-stage biopharmaceutical company focused on the development of orally-available therapies for the treatment of non-alcoholic steatohepatitis (NASH), mucopolysaccharidoses (MPS), and other diseases with significant unmet medical needs. The company leverages its proprietary technology platform to develop novel small molecule drugs that target nuclear receptors, transcription factors, and epigenetic modulation.
How the Company Makes MoneyInventiva makes money primarily through the development and commercialization of its drug candidates. As a clinical-stage company, its revenue streams include collaboration agreements, licensing agreements, and milestone payments from partnerships with pharmaceutical companies. These collaborations often involve upfront payments, research funding, and royalties on sales of successfully developed drugs. Additionally, Inventiva may receive government grants or incentives to support its research and development activities. The company is also focused on advancing its pipeline through clinical trials to eventually commercialize its products, which will become a significant revenue stream upon marketing approval.
Inventiva Earnings Call Summary
Earnings Call Date:Mar 26, 2025
(Q4-2024)
| % Change Since: 39.58%|
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
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.35
Negative
Balance Sheet
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.30
Negative
Cash Flow
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.40
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.20M | 17.48M | 12.18M | 4.19M | 372.00K |
| Gross Profit | 9.20M | 17.50M | 11.18M | 3.18M | -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 Assets | 118.97M | 69.56M | 116.00M | 121.98M | 138.92M |
| Cash, Cash Equivalents and Short-Term Investments | 96.56M | 26.99M | 87.78M | 95.38M | 113.02M |
| Total Debt | 54.33M | 37.49M | 34.51M | 10.12M | 13.25M |
| Total Liabilities | 225.61M | 101.59M | 70.53M | 33.12M | 27.71M |
| Stockholders Equity | -106.65M | -32.03M | 45.48M | 88.87M | 111.21M |
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 Flow | 8.74M | -7.73M | 8.87M | -1.79M | -8.56M |
| Financing Cash Flow | 145.59M | 29.08M | 37.27M | 25.45M | 111.67M |
Inventiva Technical Analysis
Positive
4.02
Price Trends
3.36
Positive
3.35
Positive
2.96
Positive
Market Momentum
0.16
Negative
72.30
Negative
95.73
Negative
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 4.02 is above the 20-day moving average (MA) of 3.43, above the 50-day MA of 3.36, and above the 200-day MA of 2.96, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 72.30 is Negative, neither overbought nor oversold. The STOCH value of 95.73 is Negative, 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 (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
55 Neutral | $488.33M | ― | 344.74% | ― | -47.32% | -26.67% | |
52 Neutral | $409.17M | ― | -62.49% | ― | 74.95% | 34.25% | |
51 Neutral | $7.44B | -0.20 | -46.33% | 2.27% | 23.01% | -2.29% | |
45 Neutral | $200.81M | ― | 40.36% | ― | 9.78% | 98.13% | |
41 Neutral | $522.44M | ― | -53.15% | ― | ― | 39.03% | |
41 Neutral | $199.69M | 7.36 | -18.12% | ― | -66.80% | -157.68% |
* Healthcare Sector Average
Performance Comparison
IVA
Inventiva
4.22
2.02
91.82%
ORKA
Oruka Therapeutics
15.00
-4.04
-21.22%
HRTX
Heron Therapeutics
1.35
-0.58
-30.05%
RGNX
RegenXBio
9.06
-3.19
-26.04%
TRDA
Entrada Therapeutics Inc
5.25
-11.28
-68.24%
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.