BURLINGAME, Calif. – Innoviva Specialty Therapeutics, Inc. (IST), a subsidiary of Innoviva, Inc. (NASDAQ: INVA), has secured an exclusive license and distribution agreement with Basilea Pharmaceutica Ltd (SIX: BSLN) for Zevtera® (ceftobiprole), a novel cephalosporin antibiotic, in the United States market. Innoviva, currently valued at $1.16 billion, has demonstrated strong financial performance with a 21.46% revenue growth over the last twelve months. According to InvestingPro analysis, the company maintains an impressive 84.24% gross profit margin.
Zevtera® has gained U.S. Food and Drug Administration (FDA) approval in April 2024 for three specific indications, including the treatment of methicillin-resistant Staphylococcus aureus (MRSA) bloodstream infections and endocarditis. This marks Zevtera as the sole FDA-approved MRSA-targeting cephalosporin antibiotic for these conditions. It is also indicated for acute bacterial skin and skin structure infections (ABSSSI) and community-acquired bacterial pneumonia (CABP) in both adults and children aged 3 months and above.
The agreement will allow Innoviva to exclusively market Zevtera® in the U.S., with Basilea receiving an upfront payment of $4 million, as well as tiered royalties and milestones based on net sales in the country. IST anticipates launching Zevtera® in the U.S. market in mid-year 2025.
Zevtera® is noted for its effectiveness against a broad spectrum of Gram-positive bacteria, including MRSA, as well as Gram-negative bacteria. The drug is already approved and marketed in several European countries and beyond under the brand names Zevtera® and Mabelio® for hospital-acquired bacterial pneumonia (HABP), excluding ventilator-associated bacterial pneumonia (VABP), and CABP.
This strategic partnership is expected to bolster Innoviva's portfolio, which includes a range of critical care and infectious disease treatments. Innoviva's royalty portfolio also includes respiratory assets partnered with Glaxo Group Limited (GSK (LON:GSK)), and the company has made other strategic investments in healthcare assets, such as Entasis Therapeutics and La Jolla Pharmaceutical (TADAWUL:2070) Company. InvestingPro data reveals the company maintains a "GREAT" financial health score of 3.28, suggesting strong operational efficiency. The stock is currently trading below its Fair Value, presenting a potential opportunity for investors interested in the healthcare sector.
The licensing of Zevtera® is seen as a significant step in addressing the high medical need for improved therapies for serious infections like MRSA bloodstream infections, which have a high mortality rate and substantial cost burden for healthcare systems. With a strong free cash flow yield and relatively low price volatility, Innoviva demonstrates solid fundamentals. Discover more detailed financial metrics and additional ProTips by visiting InvestingPro.
The information in this article is based on a press release statement from Innoviva, Inc.
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