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Inventiva SA ADR (IVA)
:IVA
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Inventiva
(NASDAQ:IVA)
43Neutral
Positive Factors
Clinical Trial Progress
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.
Financial Position
Completion of NATiV3 enrollment would unlock two key financing components, providing about €125M in funding to extend its cash runway.
Regulatory Approval
Lanifibranor could become the second orally-dosed MASH therapy approved by the FDA.
Negative Factors
Clinical Trial Risks
Key risks to the rating and price target include clinical trial failures or equivocal results, meaningful delays to expected development or regulatory timelines, and inability to access equity capital markets at reasonable terms.
Operational Changes
The company announced a 50% reduction in workforce and halted all preclinical research activities to focus on the development of lanifibranor.
Regulatory Risks
A major stock catalyst is anticipated in a positive top-line data readout, supporting lanifibranor's potential accelerated approval for MASH fibrosis.
Inventiva (IVA) vs. S&P 500 (SPY)
Market Cap
$284.98M
Dividend YieldN/A
Average Volume (3M)9.85K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth17.91%
EPS Growth-10.55%
CountryUS
Employees123
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-3.33
Shares Outstanding95,662,390
10 Day Avg. Volume6,293
30 Day Avg. Volume9,845
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
$14.80Price Target Upside410.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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
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.45
Neutral
Balance Sheet
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.30
Negative
Cash Flow
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.40
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 17.48M | 12.18M | 4.19M | 372.00K | 7.00M | Gross Profit |
| 17.50M | 11.18M | 3.18M | -474.00K | 7.00M | EBIT |
| -102.71M | -57.11M | -52.11M | -29.72M | -30.31M | EBITDA |
| -102.04M | -57.11M | -52.27M | -31.77M | -28.36M | Net Income Common Stockholders |
| -110.43M | -54.27M | -49.64M | -31.62M | -30.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 26.99M | 87.78M | 95.38M | 113.02M | 35.84M | Total Assets |
| 69.56M | 116.00M | 121.98M | 138.92M | 56.96M | Total Debt |
| 37.49M | 34.51M | 10.12M | 13.25M | 2.10M | Net Debt |
| 10.57M | -52.22M | -76.43M | -92.43M | -33.74M | Total Liabilities |
| 101.59M | 70.53M | 33.12M | 27.71M | 15.57M | Stockholders Equity |
| -32.03M | 45.48M | 88.87M | 111.21M | 41.39M |
| Cash Flow | Free Cash Flow | |||
| -82.15M | -45.49M | -48.16M | -30.88M | -28.54M | Operating Cash Flow |
| -81.61M | -44.93M | -47.63M | -30.59M | -28.40M | Investing Cash Flow |
| -7.73M | 8.87M | -1.79M | -8.56M | -826.00K | Financing Cash Flow |
| 29.08M | 37.27M | 25.45M | 111.67M | 8.38M |
Inventiva Technical Analysis
Positive
2.90
Price Trends
2.70
Positive
2.59
Positive
2.50
Positive
Market Momentum
0.05
Positive
50.97
Neutral
59.91
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 2.9 is below the 20-day moving average (MA) of 2.94, above the 50-day MA of 2.70, and above the 200-day MA of 2.50, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.91 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $1.18B | ― | -23.01% | ― | 168.06% | 44.66% | |
60 Neutral | $3.40B | ― | -39.22% | ― | ― | -31.37% | |
54 Neutral | $7.24B | ― | -80.35% | ― | ― | -10.89% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 17.48% | 1.17% | |
48 Neutral | $273.50M | ― | -3.49% | ― | 3.18% | -835.29% | |
43 Neutral | $284.98M | ― | 344.74% | ― | 17.91% | -10.55% | |
41 Neutral | $3.56M | ― | 1155.92% | ― | ― | ― |
* Healthcare Sector Average
Performance Comparison
IVA
Inventiva
2.90
-0.78
-21.20%
MDGL
Madrigal Pharmaceuticals
327.87
72.13
28.20%
VNDA
Vanda
4.69
0.57
13.83%
RDHL
RedHill Biopharma
2.79
-10.95
-79.69%
ARDX
Ardelyx
4.93
-2.48
-33.47%
AKRO
Akero Therapeutics
42.72
18.65
77.48%
Inventiva Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 0.69% | 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.