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Document and Entity Information - USD ($)	12 Months Ended
Dec. 31, 2017	Feb. 16, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	Innoviva, Inc.
Entity Central Index Key	0001080014
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 980,937,011
Entity Common Stock, Shares Outstanding		101,824,355
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 73,336	$ 118,016
Short-term marketable securities	55,739	32,417
Related party receivables from collaborative arrangements	70,540	46,847
Prepaid expenses and other current assets	754	766
Total current assets	200,369	198,046
Property and equipment, net	209	368
Capitalized fees paid to a related party, net	166,722	180,545
Other assets	37	37
Total assets	367,337	378,996
Current liabilities:
Accounts payable	601	128
Accrued personnel-related expenses	1,721	2,361
Accrued interest payable	5,920	7,828
Other accrued liabilities	1,500	1,095
Current portion of long-term debt	25,000	7,752
Deferred revenue, current	0	885
Total current liabilities	34,742	20,049
Long-term debt, net of current portion, discount and issuance costs	574,362	708,341
Other long-term liabilities	940	1,383
Deferred revenue	0	2,214
Commitments and contingencies (Notes 9)
Stockholders' deficit:
Preferred stock: $0.01 par value, 230 shares authorized, no shares issued and outstanding
Common stock: $0.01 par value, 200,000 shares authorized, 102,046 and 108,585 shares issued as of December 31, 2017 and 2016, respectively	1,019	1,085
Treasury stock: 150 shares as of December 31, 2017 and 2016	(3,263)	(3,263)
Additional paid-in capital	1,258,151	1,282,077
Accumulated other comprehensive (loss) income	(18)	1
Accumulated deficit	(1,498,748)	(1,632,891)
Total Innoviva stockholders' deficit	(242,859)	(352,991)
Noncontrolling interest	152	0
Total stockholders' deficit	(242,707)	(352,991)
Total liabilities and stockholders' deficit	$ 367,337	$ 378,996

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenue:
Royalty revenue from a related party, net of amortization for capitalized fees paid to a related party of $13,823 in the year ended December 31, 2017, 2016, and 2015, respectively	$ 214,118	$ 132,684	$ 53,064
Revenue from collaborative arrangements from a related party	3,099	885	885
Total net revenue	217,217	133,569	53,949
Operating expenses:
Research and development	1,355	1,393	2,619
General and administrative	32,258	23,188	19,750
Total operating expenses	33,613	24,581	22,369
Income from operations	183,604	108,988	31,580
Other (expense) income, net	(7,042)	2,382	1,120
Interest income	1,311	582	343
Interest expense	(43,601)	(52,416)	(51,803)
Net income (loss)	134,272	59,536	(18,760)
Net income attributable to noncontrolling interest	129	0	0
Net income (loss) attributable to Innoviva stockholders	$ 134,143	$ 59,536	$ (18,760)
Basic net income (loss) per share attributable to Innoviva stockholders	$ 1.25	$ 0.54	$ (0.16)
Diluted net income (loss) per share attributable to Innoviva stockholders	$ 1.17	$ 0.53	$ (0.16)
Shares used to compute Innoviva basic and diluted net income (loss) per share:
Shares used to compute basic net income (loss) per share	106,945	110,280	115,372
Shares used to compute diluted net income (loss) per share	119,866	123,233	115,372
Cash dividends declared per common share (in dollars per share)	$ 0.00	$ 0.00	$ 0.75

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (loss)	Accumulated Deficit	Treasury Stock	Noncontrolling Interest	Total
Balance at Dec. 31, 2014	$ 1,164	$ 1,452,504	$ (87)	$ (1,673,667)	$ (3,263)	$ 0	$ (223,349)
Balance (in shares) at Dec. 31, 2014	116,445				(150)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options, and issuance of common stock units and stock awards	$ 8	(488)	0	0	$ 0	0	(480)
Exercise of stock options, and issuance of common stock units and stock awards (in shares)	740				0
Issuance of common stock in private placement to a related party	$ 4	6,524	0	0	$ 0	0	6,528
Issuance of common stock in private placement to a related party (in shares)	424				0
Stock-based compensation	$ 0	6,873	0	0	$ 0	0	6,873
Repurchase of common stock	$ (27)	(25,609)	0	0	$ 0	0	(25,636)
Repurchase of common stock (in shares)	(2,676)				0
Cash dividends declared, $0.75 per common share	$ 0	(87,906)	0	0	$ 0	0	(87,906)
Net income (loss)	0	0	0	(18,760)	0	0	(18,760)
Other comprehensive income (loss)	0	0	85	0	0	0	85
Balance at Dec. 31, 2015	$ 1,149	1,351,898	(2)	(1,692,427)	$ (3,263)	0	(342,645)
Balance (in shares) at Dec. 31, 2015	114,933				(150)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options, and issuance of common stock units and stock awards	$ 8	(674)	0	0	$ 0	0	(666)
Exercise of stock options, and issuance of common stock units and stock awards (in shares)	853				0
Issuance of common stock in private placement to a related party (in shares)	0				0
Partial termination of capped call options associated with repurchases of convertible notes due 2023	$ 0	578	0	0	$ 0	0	578
Stock-based compensation	0	8,297	0	0	0	0	8,297
Repurchase of common stock	$ (72)	(78,022)	0	0	$ 0	0	(78,094)
Repurchase of common stock (in shares)	(7,201)				0
Net income (loss)	$ 0	0	0	59,536	$ 0	0	59,536
Other comprehensive income (loss)	0	0	3	0	0	0	3
Balance at Dec. 31, 2016	$ 1,085	1,282,077	1	(1,632,891)	$ (3,263)	0	(352,991)
Balance (in shares) at Dec. 31, 2016	108,585				(150)
Increase (Decrease) in Stockholders' Equity
Contributions from noncontrolling interest	$ 0	0	0	0	$ 0	23	23
Exercise of stock options, and issuance of common stock units and stock awards	$ 9	(1,702)	0	0	$ 0	0	(1,693)
Exercise of stock options, and issuance of common stock units and stock awards (in shares)	891				0
Stock-based compensation	$ 0	9,833	0	0	$ 0	0	9,833
Cash dividend forfeited	0	7	0	0	0	0	7
Repurchase of common stock	$ (75)	(97,425)	0	0	$ 0	0	(97,500)
Repurchase of common stock (in shares)	(7,430)				0
Equity components of Convertible Senior Notes due 2025, net of issuance costs	$ 0	65,361	0	0	$ 0	0	65,361
Net income (loss)	0	0	0	134,143	0	129	134,272
Other comprehensive income (loss)	0	0	(19)	0	0	0	(19)
Balance at Dec. 31, 2017	$ 1,019	$ 1,258,151	$ (18)	$ (1,498,748)	$ (3,263)	$ 152	$ (242,707)
Balance (in shares) at Dec. 31, 2017	102,046				(150)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income (loss)	$ 134,272	$ 59,536	$ (18,760)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	13,982	13,954	13,933
Stock-based compensation	9,833	8,297	6,873
Amortization of debt discount and issuance costs	5,116	2,847	2,943
Loss (gain) on extinguishment of debt	7,256	(2,342)	0
Amortization of discount on short term investment	(105)	(9)	583
Amortization of lease guarantee	(325)	(190)	0
Interest added to the principal balance of the non-recourse term notes due 2029	0	855	22,635
Realized gain on sale of marketable securities, net	0	0	(1,220)
Other non-cash items	0	0	(3)
Changes in operating assets and liabilities:
Receivables from collaborative arrangements	(23,693)	(20,619)	(15,678)
Prepaid expenses and other current assets	12	48	320
Other assets	0	(19)	0
Accounts payable	473	(690)	818
Payable to Theravance Biopharma, Inc., net	0	0	(1,056)
Accrued personnel-related expenses and other accrued liabilities	(81)	276	(725)
Accrued interest payable	(1,908)	(83)	360
Other long-term liabilities	16	8	(7)
Deferred revenue	(3,099)	(885)	(885)
Net cash provided by operating activities	141,749	60,984	10,131
Cash flows from investing activities
Maturities of marketable securities	44,387	88,422	137,621
Purchases of marketable securities	(67,623)	(95,719)	(86,523)
Sales of marketable securities	0	2,995	108,077
Purchases of property and equipment	0	(278)	(7)
Net cash (used in) provided by investing activities	(23,236)	(4,580)	159,168
Cash flows from financing activities
Proceeds from senior secured term loans	250,000	0	0
Proceeds from issuance of convertible senior notes due 2025	192,500	0	0
Payments of debt issuance costs and debt discount	(12,803)	0	0
Payment of principal on non-recourse notes due 2029	(487,189)	(6,828)	0
Repurchase of shares to satisfy tax withholding	(2,128)	(1,079)	(2,192)
Payments of principal on senior secured term loans	6,250	0	0
Payments of cash dividends to stockholders	(281)	(960)	(87,331)
Proceeds from issuances of common stock, net	435	385	8,240
Repurchase of common stock	(97,500)	(78,094)	(25,636)
Repurchase of convertible subordinated notes due 2023	0	(11,570)	0
Proceeds from capped-call options	0	578	0
Contributions from noncontrolling interest	23	0	0
Net cash used in financing activities	(163,193)	(97,568)	(106,919)
Net (decrease) increase in cash and cash equivalents	(44,680)	(41,164)	62,380
Cash and cash equivalents at beginning of period	118,016	159,180	96,800
Cash and cash equivalents at end of period	73,336	118,016	159,180
Supplemental disclosure of cash flow information
Cash paid for interest	$ 40,353	$ 48,797	$ 25,863

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Operations

Innoviva, Inc. (referred to as "Innoviva", the "Company", or "we" and other similar pronouns) is focused on bringing compelling medicines to patients in areas of unmet need by leveraging its significant expertise in the development, commercialization and financial management of bio-pharmaceuticals. Innoviva's portfolio is anchored by the respiratory assets partnered with Glaxo Group Limited ("GSK"), including RELVAR®/BREO®ELLIPTA® (fluticasone furoate/ vilanterol, "FF/VI"), ANORO® ELLIPTA® (umeclidinium bromide/ vilanterol, "UMEC/VI") and TRELEGY® ELLIPTA® (the combination FF/UMEC/VI). Under the Long-Acting Beta2 Agonist ("LABA") Collaboration Agreement, Innoviva is eligible to receive the associated royalty revenues from RELVAR®/BREO®ELLIPTA® and ANORO® ELLIPTA®. Innoviva is also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to Theravance Respiratory Company, LLC ("TRC"), relating to TRELEGY® ELLIPTA® and any other product or combination of products that may be discovered and developed in the future under the LABA Collaboration Agreement and the Strategic Alliance Agreement with GSK (referred to herein as the "GSK Agreements"), which have been assigned to TRC other than RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA®.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Innoviva and its wholly owned subsidiaries and a variable interest entity for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation. For the consolidated variable interest entity, the Company records net income attributable to noncontrolling interest on its consolidated statements of operations equal to the percentage of ownership interest retained in such entity by the respective noncontrolling party.

Use of Management's Estimates

The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Management evaluates its significant accounting policies and estimates on an ongoing basis. We base our estimates on historical experience and other relevant assumptions that we believe to be reasonable under the circumstances. These estimates also form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources.

Certain Risks and Concentrations

Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and marketable securities. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed federally insured limits. Refer to "Segment Reporting" below for concentrations with respect to revenues and geographic locations.

Segment Reporting

We operate in a single segment, which is to provide capital return to stockholders by maximizing the potential value of our respiratory assets partnered with GSK. Revenues are generated from our collaborative arrangements and royalty payments from GSK, located in Great Britain. Our facilities are located within the United States.

Variable Interest Entity

We evaluate our ownership, contractual and other interest in entities to determine if they are variable-interest entities ("VIE"), whether we have a variable interest in those entities and the nature and extent of those interests. Based on our evaluations, if we determine we are the primary beneficiary of such VIEs, we consolidate such entities into our financial statements. We consolidate the financial results of TRC, which we have determined to be a VIE, because we have the power to direct the economically significant activities of TRC and the obligation to absorb losses of, or the right to receive benefits from, TRC. The financial position and results of operations of TRC are not material for the periods presented.

Cash and Cash Equivalents

We consider all highly liquid investments purchased with a maturity of three months or less on the date of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value.

Investments in Marketable Securities

We invest in short-term investments and marketable securities, primarily corporate notes, government securities, government agencies, and government commercial papers. We limit the amount of credit exposure with any one issuer, industry or geographic area for investments other than instruments backed by the U.S. federal government. We classify our marketable securities as available-for-sale securities and report them at fair value in cash equivalents or short-term marketable securities on the consolidated balance sheets with related unrealized gains and losses included as a component of stockholders' deficit. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, which is included in interest income on the consolidated statements of operations. Realized gains and losses, if any, on available-for-sale securities are included in interest income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income.

We regularly review all of our investments for other-than-temporary declines in estimated fair value. Our review includes the consideration of the cause of the impairment, including the creditworthiness of the security issuers, the number of securities in an unrealized loss position, the severity and duration of the unrealized losses, whether we have the intent to sell the securities and whether it is more likely than not that we will be required to sell the securities before the recovery of their amortized cost basis. When we determine that the decline in estimated fair value of an investment is below the amortized cost basis and the decline is other-than-temporary, we reduce the carrying value of the security and record a loss for the amount of such decline to other income (expense), net.

Fair Value of Financial Instruments

We define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

Our valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. We classify these inputs into the following hierarchy:

Level 1—Quoted prices for identical instruments in active markets.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3—Unobservable inputs and little, if any, market activity for the assets.

Financial instruments include cash equivalents, marketable securities, receivables from collaborative arrangements, accounts payable, and accrued liabilities. Cash equivalents and marketable securities are carried at estimated fair value. The carrying value of receivables from collaborative arrangements, accounts payable, and accrued liabilities approximate their estimated fair value due to the relatively short-term nature of these instruments.

Property and Equipment

Property and equipment as of December 31, 2017 and 2016, which consisted of equipment, computer equipment, software, office furniture and fixture, amounted to $0.2 million and $0.4 million, respectively.

Property, equipment and leasehold improvements are stated at cost and depreciated using the straight-line method as follows:

Leasehold improvements		Shorter of remaining lease terms or useful life
Equipment, furniture and fixtures		5 - 7 years
Software and computer equipment		3 years

Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $0.2 million, $0.1 million and $0.1 million, respectively.

Capitalized Software

We capitalize certain costs related to direct material and service costs for software obtained for internal use. Capitalized software costs are depreciated over three years.

Capitalized Fees Paid to a Related Party

We capitalize fees paid to licensors related to agreements for approved products or commercialized products. We capitalize these fees as capitalized fees paid to a related party ("Capitalized Fees") and amortize these Capitalized Fees on a straight-line basis over their estimated useful lives upon the commercial launch of the product, which has been shortly after regulatory approval of such product. The estimated useful lives of these Capitalized Fees are based on a country-by-country and product-by-product basis, as the later of the expiration or termination of the last patent right covering the compound in such product in such country and 15 years from first commercial sale of such product in such country, unless the agreement is terminated earlier. Consistent with our policy for classification of costs under the research and development collaborative arrangements, the amortization of these Capitalized Fees are recognized as a reduction of royalty revenue. We review our Capitalized Fees for impairment on a product-by-product basis for each major geographic area when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The recoverability of Capitalized Fees is measured by comparing the asset's carrying amount to the expected undiscounted future cash flows that the asset is expected to generate. The determination of recoverability typically requires various estimates and assumptions, including estimating the useful life over which cash flows will occur, their amount, and the asset's residual value, if any. We derive the required cash flow estimates from near-term forecasted product sales and long-term projected sales in the corresponding market.

Revenue Recognition

Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Where the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue until such time that all criteria are met.

Collaborative Arrangements and Multiple-Element Arrangements

Revenue from nonrefundable, up-front license or technology access payments under license and collaborative arrangements that are not dependent on any future performance by us is recognized when such amounts are earned. If we have continuing obligations to perform under the arrangement, such fees are recognized over the estimated period of continuing performance obligation. For our arrangements with GSK, we recognize revenue from non-refundable, upfront fees and development contingent payments in the same manner as the final deliverable, which is ratably over the expected term of our performance of research and development services under the agreements. These upfront or contingent payments received, pending recognition as revenue, are recorded as deferred revenue. We periodically review the estimated performance period of our contracts based on the progress of our programs. The effect of any change made to an estimated performance period and, therefore revenue recognized, would occur on a prospective basis in the period that the change was made.

The remaining deferred revenue under the GSK Strategic Alliance Agreement was fully recognized during the year ending December 31, 2017 because there is no remaining performance obligation for Innoviva under the MABA program.

Royalties

We recognize royalty revenue on licensee net sales of products with respect to which we have contractual royalty rights in the period in which the royalties are earned and reported to us and collectability is reasonably assured. Royalties are recognized net of amortization of capitalized fees associated with any approval and launch milestone payments made to GSK.

Allowance for Doubtful Accounts

We maintain a policy to record allowances for potentially doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. As of December 31, 2017, there were no allowances for doubtful accounts and we have not had any write-offs historically.

Fair Value of Stock-Based Compensation Awards

We use the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under our equity incentive plans and rights to acquire stock granted under our employee stock purchase plan ("ESPP"). The Black-Scholes-Merton option valuation model requires the use of assumptions, including the expected term of the award and the expected stock price volatility. We use the "simplified" method as described in Staff Accounting Bulletin No. 107, "Share-Based Payment," for the expected option term. We use our historical volatility to estimate expected stock price volatility.

Restricted stock units ("RSUs") and restricted stock awards ("RSAs") are measured based on the fair market values of the underlying stock on the dates of grant.

Stock-based compensation expense is calculated based on awards ultimately expected to vest and was reduced for estimated forfeitures at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Our estimated annual forfeiture rates for stock options, RSUs and RSAs are based on our historical forfeiture experience.

The estimated fair value of stock options, RSUs and RSAs is expensed on a ratable or straight-line basis over the expected term of the grant or expected term of the vesting and the estimated fair value of performance-contingent RSUs and RSAs is expensed using an accelerated method over the term of the award once we have determined that it is probable that performance milestones will be achieved. Compensation expense for RSUs and RSAs that contain performance conditions is based on the grant date fair value of the award. Compensation expense is recorded over the requisite service period based on management's best estimate as to whether it is probable that the shares awarded are expected to vest. We assess the probability of the performance milestones being met on a continuous basis. The grant date fair value of the RSUs and RSAs with a market condition is determined using a Monte Carlo valuation model and the compensation expense is recognized over the implied service period.

Compensation expense for purchases under the ESPP is recognized based on the fair value of the common stock on the date of offering, less the purchase discount percentage provided for in the plan.

Amortization of Debt Issuance Costs from Non-Recourse Notes Due 2029

In April 2014, we entered into certain note purchase agreements relating to the private placement of $450.0 million aggregate principal amount of non-recourse 9% fixed rate term notes due the 2029 (the "2029 Notes") issued by our wholly-owned subsidiary.

We incurred approximately $15.3 million in transaction costs in connection with issuance of the 2029 Notes, which we amortized to interest expense over the estimated life of the 2029 Notes based on the effective interest method. In May 2017, we redeemed $50 million on the 2029 Notes. In August 2017, we redeemed the remaining principal balance of $407.6 million with the net proceeds from the convertible senior notes due 2025 (the "2025 Notes") and Term B Loan. With the redemptions of the 2029 Notes, we recorded $7.3 million loss on the extinguishment and presented it as part of Other income (expense), net in our consolidated statements of operations.

Income Taxes

We utilize the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities and are measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

None of our currently unrecognized tax benefits would affect our effective income tax rate if recognized, due to the valuation allowance that currently offsets our deferred tax assets. We do not anticipate the total amount of unrecognized income tax benefits relating to uncertain tax positions existing as of December 31, 2017 will significantly increase or decrease in the next 12 months.

We assess all material positions taken in any income tax return, including all significant uncertain positions, in all tax years that are still subject to assessment or challenge by relevant taxing authorities. Assessing an uncertain tax position begins with the initial determination of the position's sustainability and is measured at the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. As of each balance sheet date, unresolved uncertain tax positions must be reassessed, and we will determine whether: the factors underlying the sustainability assertion have changed and whether the amount of the recognized tax benefit is still appropriate.

The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available.

Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of changes in unrealized and realized gains and losses on our marketable securities.

Related Parties

GSK owned 31.4% of our outstanding common stock as of December 31, 2017. Transactions with GSK are described in Note 3, "Collaborative Arrangements".

In filings with the Securities and Exchange Commission, BlackRock, Inc., a global provider of investment, advisory and risk management solutions, reported beneficial ownership of more than 10% of our outstanding common stock as of December 31, 2017. We use an external asset manager, not affiliated with BlackRock, Inc., to manage a portion of our cash and investments portfolio. We had $64.3 million invested in BlackRock Liquidity Money Market Fund as of December 31, 2016 through our external asset manager. The money market fund invests in U.S. Treasury bills, notes, trust receipts and direct obligations of the U.S. Treasury and repurchase agreements relating to direct treasury obligations. We had no investment in this fund as of December 31, 2017.

Recently Issued Accounting Pronouncements Not Yet Adopted

In April 2016, the FASB issued ASU 2016-10 to clarify the implementation guidance on licensing and the identification of performance obligations consideration included in ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which is also known as ASC 606, was issued in May 2014 and outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In March 2016, the FASB issued ASU 2016-08 to provide amendments to clarify the implementation guidance on principal versus agent considerations. This standard is effective for us on January 1, 2018. We implemented the standard on January 1, 2018 on a modified retrospective basis to contracts which are not completed as of this date. This standard will not have a material impact on our consolidated financial statements as we do not have any unrecognized transaction price, other than sales-based royalty revenue, or any remaining performance obligations under our collaboration agreements as of the initial adoption date.

In February 2016, the FASB issued ASU 2016-02, Leases, which supersedes the lease recognition requirements in ASC Topic 840, Leases. The standard requires an entity to recognize right-of-use assets and lease liabilities arising from a lease for both financing and operating leases in the consolidated balance sheets but recognize the impact on the consolidated statement of operations and cash flows in a similar manner under current GAAP. The standard also requires additional qualitative and quantitative disclosures. The standard is effective for us at the beginning January 1, 2019 and requires transition under a modified retrospective method. The most significant impact of the update to us is that we will be required to recognize a "right-of-use" asset and lease liability for the operating lease agreement that was not previously included on the balance sheet under the existing lease guidance. We anticipate that there will be no material impact on our consolidated statement of operations from the adoption of ASU 2016-02.

NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2017

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

2. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share attributable to Innoviva stockholders is computed by dividing net income (loss) attributable to Innoviva stockholder by the weighted-average number of shares of common stock outstanding. Diluted net income (loss) per share attributable to Innoviva stockholders is computed by dividing net income (loss) attributable to Innoviva stockholders by the weighted-average number of shares of common stock and dilutive potential common stock equivalents then outstanding. Dilutive potential common stock equivalents include the assumed exercise, vesting and issuance of employee stock awards using the treasury stock method, as well as common stock issuable upon assumed conversion of our 2023 convertible debt using the if-converted method.

Our 2025 Notes are convertible, based on the applicable conversion rate, into cash, shares of our common stock or a combination thereof, at our election. Our current intent is to settle the principal amount of the 2025 Notes in cash upon conversion. The impact of the assumed conversion premium to diluted net income per share is computed using the treasury stock method. As the average market price per share of our common stock as reported on The Nasdaq Global Select Market was lower than the initial conversion price of $17.26 per share, there was no dilutive effect of the assumed conversion premium for the year ended December 31, 2017.

The following table shows the computation of basic and diluted net income (loss) per share for the years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31,
(In thousands except per share data)	2017		2016		2015
Numerator:
Net income (loss) attributable to Innoviva stockholders, basic	$	134,143	$	59,536	$	(18,760	)
Add: interest expense on 2023 Notes		5,647		5,790		—

Net income (loss) attributable to Innoviva stockholders, diluted	$	139,790	$	65,326	$	(18,760	)


Denominator:
Weighted-average shares used to compute basic net income (loss) per share attributable to Innoviva stockholders		106,945		110,280		115,372
Dilutive effect of 2023 Notes		12,189		12,541		—
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan		732		412		—

Weighted-average shares used to compute diluted net income (loss) per share attributable to Innoviva stockholders		119,866		123,233		115,372


Net income (loss) per share attributable to Innoviva stockholders
Basic	$	1.25	$	0.54	$	(0.16	)


Diluted	$	1.17	$	0.53	$	(0.16	)

Anti-dilutive Securities

The following common share equivalents were not included in the computation of diluted net income (loss) per share because their effect was anti-dilutive:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan		2,121		4,073		6,934
Shares issuable upon conversion of 2023 Notes		—		—		12,904

		2,121		4,073		19,838

COLLABORATIVE ARRANGEMENTS

12 Months Ended

Dec. 31, 2017

COLLABORATIVE ARRANGEMENTS

COLLABORATIVE ARRANGEMENTS

3. COLLABORATIVE ARRANGEMENTS

Revenue from Collaborative Arrangements

Net revenue recognized under our GSK Agreement was as follows:

	Year Ended December 31,
(In thousands)	2017			2016			2015
Royalties from a related party—RELVAR/BREO	$	198,726		$	128,638		$	59,188
Royalties from a related party—ANORO		29,036			17,869			7,699
Royalties from a related party—TRELEGY		179			—			—

Total royalties from a related party		227,941			146,507			66,887
Less: amortization of capitalized fees paid to a related party		(13,823	)		(13,823	)		(13,823	)

Royalty revenue		214,118			132,684			53,064
Strategic alliance—MABA program license		3,099			885			885


Total net revenue from GSK	$	217,217		$	133,569		$	53,949

LABA Collaboration

As a result of the launch and approval of RELVAR®/BREO® ELLIPTA® and ANORO® ELLIPTA® in the U.S., Japan and Europe, we paid milestone fees to GSK totaling $220.0 million during the year ended December 31, 2014. Although we have no further milestone payment obligations to GSK pursuant to the LABA Collaboration Agreement, we continue to have ongoing participation as part of the collaboration, including joint steering and joint project committees that are expected to continue over the life of the agreement. The milestone fees paid to GSK were recognized as capitalized fees paid to a related party, which are being amortized over their estimated useful lives commencing upon the commercial launch of the product. The amortization expense is recorded as a reduction to the royalties from GSK.

We are entitled to receive annual royalties from GSK on sales of RELVAR®/BREO® ELLIPTA® as follows: 15% on the first $3.0 billion of annual global net sales and 5% for all annual global net sales above $3.0 billion. Sales of single-agent LABA medicines and combination medicines would be combined for the purposes of this royalty calculation. For other products combined with a LABA from the LABA Collaboration, such as ANORO® ELLIPTA®, royalties are upward tiering and range from 6.5% to 10%.

We are also entitled to 15% of royalty payments made by GSK under its agreements originally entered into with us, and since assigned to TRC in connection with the Spin-Off, including TRELEGY® ELLIPTA®, which royalties are upward tiering and range from 6.5% to 10%.

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2017

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS

4. AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS

Available-for Sale Securities

The estimated fair value of available-for-sale securities is based on quoted market prices for these or similar investments that were based on prices obtained from a commercial pricing service. Available-for-sale securities are summarized below:

	December 31, 2017
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government securities	$	9,943	$	—	$	(1	)	$	9,942
U.S. government agencies		9,987		—		(2	)		9,985
U.S. corporate notes		10,881		—		(15	)		10,866
U.S. commercial papers		29,945		—		—			29,945
Money market funds		61,971		—		—			61,971

Total	$	122,727	$	—	$	(18	)	$	122,709

	December 31, 2016
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	12,428	$	1	$	—	$	12,429
U.S. commercial papers		72,065		—		—		72,065
Money market funds		64,319		—		—		64,319

Total	$	148,812	$	1	$	—	$	148,813

As of December 31, 2017, all of the available-for-sale debt securities had contractual maturities within one year and the average duration of debt securities was approximately three months.

Fair Value Measurements

Our available-for-sale securities are measured at fair value on a recurring basis and our debt is carried at the amortized cost basis. The estimated fair values were as follows:

	Estimated Fair Value Measurements as of December 31, 2017 Using:
	Quoted Price in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Types of Instruments (In thousands)	Level 1		Level 2		Level 3		Total
Assets
U.S. government securities	$	—	$	9,942	$	—	$	9,942
U.S. government agencies		—		9,985		—		9,985
U.S. corporate notes		—		10,866		—		10,866
U.S. commercial papers		—		29,945		—		29,945
Money market funds		61,971		—		—		61,971

Total assets measured at estimated fair value	$	61,971	$	60,738	$	—	$	122,709


Liabilities
Term B Loan	$	—	$	243,750	$	—	$	243,750
2023 Notes		—		241,259		—		241,259
2025 Notes		—		205,975		—		205,975

Total fair value of liabilities	$	—	$	690,984	$	—	$	690,984

	Estimated Fair Value Measurements as of December 31, 2016 Using:
	Quoted Price in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Types of Instruments (In thousands)	Level 1		Level 2		Level 3		Total
Assets
U.S. government agencies	$	—	$	12,429	$	—	$	12,429
U.S. commercial papers		—		72,065		—		72,065
Money market funds		64,319		—		—		64,319

Total assets measured at estimated fair value	$	64,319	$	84,494	$	—	$	148,813


Liabilities
2023 Notes	$	—	$	202,125	$	—	$	202,125
2029 Notes		—		487,189		—		487,189

Total fair value of liabilities	$	—	$	689,314	$	—	$	689,314

The fair value of our marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications.

The fair value of our convertible subordinated notes due 2023 (the "2023 Notes"), of our 2025 Notes and of our previously outstanding 2029 Notes is based on recent trading prices of the instruments. The carrying amount of our initial Term B Loan before deducting debt issuance costs approximates fair value as the loan carries a variable interest rate that is tied to the LIBOR rate plus an applicable spread.

STOCK BASED COMPENSATION

12 Months Ended

Dec. 31, 2017

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

6. STOCK-BASED COMPENSATION

Equity Incentive Plans

In May 2012, we adopted the 2012 Equity Incentive Plan (the "2012 Plan"). The 2012 Plan provides for the grant of incentive stock options, nonstatutory stock options, RSAs, RSUs and SARs to employees, non-employee directors and consultants. As of December 31, 2017, total shares remaining available for issuance under the 2012 Plan were 3,411,107.

Employee Stock Purchase Plan

Under the 2004 Employee Stock Purchase Plan (the "ESPP"), our employees may purchase common stock through payroll deductions at a price equal to 85% of the lower of the fair market value of the stock at the beginning of the offering period or at the end of each applicable purchase period. The ESPP provides for consecutive and overlapping offering periods of 24 months in duration, with each offering period composed of four consecutive six-month purchase periods. The purchase periods end on either May 15 or November 15. ESPP contributions are limited to a maximum of 15% of an employee's eligible compensation. The maximum number of shares that an employee may purchase in any purchase period is 2,500. An employee may not purchase shares with a value greater than $25,000 in any calendar year.

As of December 31, 2017, total shares remaining available for issuance under the ESPP were 205,979.

Performance-Contingent RSAs and RSUs

Since 2011, the Compensation Committee of our Board of Directors (the "Compensation Committee") has approved grants of performance-contingent RSAs and RSUs to senior management and a non-executive officer. Generally, these awards have dual triggers of vesting based upon the achievement of certain performance goals by a pre-specified date, as well as a requirement for continued employment. Recognition of stock-based compensation expense begins when the performance goals are deemed probable of achievement.

Included in these performance-contingent RSAs is the remaining grant of 63,000 special long-term retention and incentive performance-contingent RSAs to senior management in 2011. The awards have dual triggers of vesting based upon the achievement of certain performance conditions over a six-year timeframe from 2011 through December 31, 2016 and require continued service to the Company. During the year ended December 31, 2016, we determined that the achievement of the requisite performance conditions was met. These awards were released in November 2017 upon vesting.

Market-Based RSAs and RSUs

On January 14, 2016, the Compensation Committee approved and granted 282,394 RSAs and 46,294 RSUs to senior management. These awards include a market condition based on Relative Total Shareholder Return ("TSR") and a service condition that requires continued employment, collectively the "Performance Measures". The vesting percentages of these awards are calculated based on the two-year TSR with a catch-up provision opportunity measured on January 13, 2019 for RSAs and on September 30, 2018 for RSUs. Two-thirds of amounts earned at the end of year two will vest and be distributed on February 20, 2018, while the final one-third earned after two years as well as the catch-up amount earned will vest and be distributed on February 20, 2019 for RSAs and November 20, 2018 for RSUs. The actual payout of shares may range from a minimum of zero shares to a maximum of 328,688 shares granted upon the actual performance against the Performance Measures. The grant date fair value of these awards is determined using a Monte Carlo valuation model. The aggregate value of $2.0 million is recognized as compensation expense over the implied service period and will not be reversed if the market condition is not met.

On January 17, 2017, the Compensation Committee approved and granted 353,508 RSAs and 53,360 RSUs to senior management. These awards include a market condition based on the TSR of Innoviva's common stock as compared to the TSR of the Nasdaq Biotechnology Index ("Index") and a service condition that requires continued employment, collectively the "Performance Measures II". The vesting percentages of these awards are calculated based on the two-year performance period with a catch-up provision opportunity measured on December 31, 2019 for RSAs and on September 30, 2019 for RSUs. Two-thirds of amounts earned at the end of year two will vest and be distributed on February 20, 2019, while the final one-third earned after two years as well as the catch-up amount earned will vest and be distributed on February 20, 2020 for RSAs and November 20, 2019 for RSUs. The actual payout of shares may range from a minimum of zero shares to a maximum of 406,868 shares granted upon the actual performance against the Performance Measures II. The grant date fair value of these awards was determined using a Monte Carlo valuation model. The aggregate value of $3.2 million is recognized as compensation expense over the implied service period and will not be reversed if the market condition is not met.

Director Compensation Program

Our non-employee directors receive compensation for services provided as a director. Each member of our Board of Directors who is not an employee receives both cash and equity compensation for services as a director, member of a committee of the Board of Directors, lead independent director and chairman, as applicable. In October 2017, both the cash and equity components of the compensation program were amended, effective immediately (the "October 2017 Amendments").

Each of our independent directors receives periodic automatic grants of equity awards under a program implemented under the 2012 Plan. These grants are non-discretionary. Only our independent directors or affiliates of such directors are eligible to receive automatic grants under the 2012 Plan. Under the program, each individual who first became a non-employee director will, on the date such individual joins the Board of Directors, automatically be granted a one-time grant of RSUs covering a number of shares of our common stock calculated as $125,000 ($250,000 prior to the October 2017 Amendments) divided by our common stock closing share price on the date of grant as reported on The Nasdaq Global Select Market, rounded down to the nearest whole share (the "Initial RSUs"), plus a one-time grant of RSUs covering a number of shares of our common stock calculated as $225,000 ($250,000 prior to the October 2017 Amendments) divided by our common stock closing share price on the date of grant as reported on The Nasdaq Global Select Market, which would be pro-rated for the number of whole months remaining until the anniversary of the prior year's stockholders' meeting, rounded down to the nearest whole share (the "Pro Rata RSUs"). The Initial RSUs vest in two equal annual installments, while Pro-Rata RSUs vest in a single installment at the sooner of the next annual stockholder meeting or the one-year grant anniversary, in each case subject to the non-employee director's continuous service through the applicable vesting date.

Annually, upon his or her re-election to the Board at the Annual Meeting of Stockholders, each non-employee director is automatically granted an RSU covering a number of shares of our common stock calculated as $225,000 ($250,000 prior to the October 2017 Amendments) divided by our common stock closing share price on the date of grant as reported on The Nasdaq Global Select Market, rounded down to the nearest whole share. Annual RSUs will vest at the sooner of the next annual stockholder meeting or the one-year anniversary of grant, subject to the non-employee director's continuous service through the applicable vesting date. Following the amendment to our non-employee director compensation program, both the annual equity awards and initial equity awards described above remained unchanged with the exception that the number of shares of our Common Stock subject to each award has been reduced.

These RSUs will vest in full upon the director's death, the occurrence of a Change in Control or, with respect to awards made after the October 2017 Amendments, the director's disability before the director's service terminates. Director RSUs carry dividend equivalent rights to be credited with an amount equal to all cash dividends paid on the underlying shares of common stock while unvested. Dividend equivalents are subject to the same terms and conditions, including vesting, as the RSUs to which they attach and are paid in cash upon vesting.

Stock-Based Compensation Expense

Stock-based compensation expense is included in the consolidated statements of operations as follows:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Research and development	$	697	$	632	$	1,036
General and administrative		9,136		7,665		5,837

Total stock-based compensation expense	$	9,833	$	8,297	$	6,873

Stock-based compensation expense included in the consolidated statements of operations by award type is as follows:

	Year Ended December 31,
(In thousands)	2017		2016		2015
Stock options	$	593	$	632	$	789
RSUs		2,282		1,920		2,492
RSAs		4,497		3,492		2,850
Performance-based RSAs		242		1,293		613
Market-based RSUs		291		112		—
Market-based RSAs		1,855		693		—
ESPP		73		155		129

Total stock-based compensation expense	$	9,833	$	8,297	$	6,873

As of December 31, 2017, the unrecognized stock-based compensation cost and the estimated weighted-average amortization period were as follows:

(In thousands)	Unrecognized Compensation Cost		Weighted-Average Amortization Period (Years)
Stock options	$	305		0.5
RSUs		1,487		0.9
RSAs		7,764		2.4
Market-based RSUs		285		0.9
Market-based RSAs		1,943		1.0

Total unrecognized compensation cost	$	11,784

Compensation Awards

The following table summarizes equity award activity under the 2012 Plan and Prior Plans and related information:

(In thousands, except per share data)	Number of outstanding options			Weighted- Average Exercise Price of Outstanding Options		Number of outstanding RSUs and PSUs			Weighted- Average Fair Value per Share at Grant		Number of outstanding RSAs and PSAs			Weighted- Average Fair Value per Share at Grant
Balance as of December 31, 2016		2,900		$	23.72		413		$	15.29		1,125		$	13.67
Granted		—			—		255			11.38		774			9.53
Exercised		(16	)		11.81		—			—		—			—
Released RSUs/RSAs		—			—		(278	)		15.88		(412	)		14.87
Forfeited		(1,244	)		23.63		(20	)		12.62		(39	)		13.19

Balance as of December 31, 2017		1,640			23.90		370			11.57		1,448			9.95

As of December 31, 2017, the aggregate intrinsic value of the options outstanding was $0.4 million and the aggregate intrinsic value of the options exercisable was $0.4 million.

The total intrinsic value of the options exercised was not material in the years ended December 31, 2017 and 2016, and was $0.5 million in the year ended December 31, 2015. The total estimated fair value of options vested was $3.8 million in the year ended December 31, 2017, $4.7 million in the year ended December 31, 2016 and $10.0 million in the year ended December 31, 2015.

The total estimated fair value of RSUs and PSUs vested was $2.6 million in the year ended December 31, 2017, $3.9 million in the year ended December 31, 2016 and $5.6 million in the year ended December 31, 2015.

The total estimated fair value of RSAs and PSAs vested was $6.3 million in the year ended December 31, 2017, $14.7 million in the year ended December 31, 2016 and $22.3 million in the year ended December 31, 2015.

Valuation Assumptions

There were no stock options granted for the years ended December 31, 2017, 2016 or 2015.

We based the range of weighted-average estimated values of rights granted under the ESPP, as well as the weighted-average assumptions used in calculating these values, on estimates as of the date of grant, as follows:

	Year Ended December 31,
	2017	2016	2015
Employee stock purchase plan issuances
Risk-free interest rate	1.4% - 1.7%	0.4% - 1.0%	0.1% - 0.9%
Expected term (in years)	0.5 - 2	0.5 - 2	0.5 - 2
Volatility	35% - 44%	39% - 66%	44% - 69%
Dividend yield	0%	0%	0% - 6%
Weighted-average estimated fair value of ESPP shares granted	$3.90	$4.47	$4.52

DEBT

12 Months Ended

Dec. 31, 2017

DEBT

DEBT

7. DEBT

Our debt consists of:

	December 31,
(In thousands)	2017			2016
Senior secured term loans	$	243,750		$	—
Convertible subordinated notes due 2023		240,984			240,984
Convertible senior notes due 2025		192,500			—
Non-recourse notes due 2029		—			487,189

Total debt		677,234			728,173
Unamortized debt discount and issuance costs		(77,872	)		(12,080	)
Current portion of senior secured term loan		(25,000	)		—
Current portion of non-recourse notes due 2029		—			(7,752	)

Net long-term debt	$	574,362		$	708,341

Senior Secured Term Loans

On August 18, 2017, we entered into a credit agreement (the "Credit Agreement") and completed a financing of $250.0 million Term B Loan, the net proceeds of which were used to repay the remaining balance of our 2029 Notes. The Term B Loan will mature on August 18, 2022. Two and one half percent (2.5%) of the initial principal amount is due quarterly beginning December 31, 2017. The remaining outstanding balance is due at maturity. Prepayments, in whole or in part, can be made at any time without a penalty. The Credit Agreement also provides us the ability to request one or more additional tranches of term loans (or increase an existing term loan) at any time prior to maturity. Interest on each term loan, at our option, may bear a varying rate of LIBOR plus 4.5% or a certain alternate base rate plus 3.5%. The initial term loan bears interest at a varying rate of three-month LIBOR plus 4.5%. Interest is due quarterly, beginning November 20, 2017.

The term loans under the Credit Agreement are unconditionally guaranteed by one of our wholly-owned subsidiaries, and will be required to be guaranteed by each of our subsequently acquired or organized direct and indirect restricted wholly-owned domestic subsidiaries whose assets or net revenues exceed 5% of the consolidated assets or net revenues, as the case may be, of our and our restricted subsidiaries (the "Guarantors"). Other domestic restricted subsidiaries, subject to certain customary exceptions, will be required to become Guarantors to the extent that domestic restricted subsidiaries excluded from such guarantee obligation represent, in the aggregate, more than 10% of the consolidated assets and more than 10% of our consolidated net revenues. These loans are senior secured obligations, collateralized by a lien on substantially all of our and the Guarantors' personal property and material real property assets (if any).

Additionally, the Credit Agreement stipulates an annual principal payment of a percentage of Excess Cash Flow ("ECF"), as described therein, to repay the term loans. The percentage of the ECF scales upwards on a tiered basis from 0% to 50%, based on our leverage ratio, as calculated pursuant to the Credit Agreement, as of the last day of the applicable fiscal year. The first ECF application date will be measured as of the end of fiscal year 2018.

In connection with the financing of the Term B Loan, we incurred $2.5 million in original interest discount and $4.9 million in debt issuance costs, which are being amortized to interest expense over the estimated life of the loan using the effective interest method. As of December 31, 2017, the principal balance of the Term B Loan was $243.8 million, of which $25.0 million was classified as a short-term liability.

Convertible Senior Notes Due 2025

On August 7, 2017, we completed a private placement of $192.5 million aggregate principal amount of our 2025 Notes. The proceeds include the 2025 Notes sold pursuant to the $17.5 million over-allotment option granted by us to the initial purchasers, which option was exercised in full. The 2025 Notes were sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). The 2025 Notes are senior unsecured obligations and bear interest at a rate of 2.5% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2018.

The 2025 Notes are convertible, based on the applicable conversion rate, into cash, shares of our common stock or a combination thereof, at our election. The initial conversion rate for the 2025 Notes is 57.9240 shares of our common stock per $1,000 principal amount of the 2025 Notes (which is equivalent to an initial conversion price of approximately $17.26 per share), representing a 30.0% conversion premium over the last reported sale price of the Company's common stock on August 1, 2017, which was $13.28 per share. The conversion rate is subject to customary anti-dilution adjustments in certain circumstances. The 2025 Notes will mature on August 15, 2025, unless repurchased or converted in accordance with their terms prior to such date. Prior to February 15, 2025, the 2025 Notes will be convertible at the option of the holders only upon the occurrence of specified events and during certain periods. From, and including, February 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2025 Notes will be convertible at any time.

Concurrently with the pricing of the offering, we repurchased and retired 1,317,771 shares of our common stock for approximately $17.5 million of the net proceeds from the offering, in privately negotiated transactions effected through one of the initial purchasers or its affiliate, as our agent. The remaining net proceeds from the sale of the 2025 Notes in the offering were used to redeem a portion of the principal outstanding under the 2029 Notes on August 15, 2017.

In accordance with accounting guidance for debt with conversion and other options, we separately account for the liability and equity components of the 2025 Notes by allocating the proceeds between the liability component and the embedded conversion option ("equity component") due to our ability to settle the conversion obligation of the 2025 Notes in cash, common stock or a combination of cash and common stock, at our option. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature using the income approach. The allocation was performed in a manner that reflected our non-convertible debt borrowing rate for similar debt. The equity component of the 2025 Notes of $67.3 million was recognized as a debt discount and represents the difference between the proceeds from the issuance of the 2025 Notes and the fair value of the liability of the 2025 Notes on the date of issuance. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense using the effective interest method. The equity component is not re-measured as long as it continues to meet the conditions for equity classification.

Our outstanding 2025 Notes balances as December 31, 2017 consisted of the following:

(In thousands)	December 31, 2017
Liability component
Principal	$	192,500
Debt discount and issuance costs, net		(68,342	)

Net carrying amount	$	124,158


Equity component, net	$	65,361

In connection with the issuance of the 2025 Notes, we incurred approximately $5.4 million of debt issuance costs, which primarily consisted of placement, legal and other professional fees, and allocated these costs to the liability and equity components based on the allocation of the proceeds. Of the total $5.4 million of debt issuance costs, $1.9 million were allocated to the equity component and recorded as a reduction to additional paid-in capital and $3.5 million were allocated to the liability component and recorded as a reduction to the carrying amount of the liability component on the consolidated balance sheet. The portion allocated to the liability component is amortized to interest expense over the expected life of the 2025 Notes using the effective interest method.

The following table sets forth total interest expense recognized related to the 2025 Notes from the date of issuance through December 31, 2017:

(In thousands)	December 31, 2017
Contractual interest expense	$	1,925
Amortization of debt issuance costs		189
Amortization of debt discount		2,268

Total interest and amortization expense	$	4,382

Convertible Subordinated Notes Due 2023

In January 2013, we completed an underwritten public offering of $287.5 million aggregate principal amount of unsecured convertible subordinated notes, which will mature on January 15, 2023. The financing raised proceeds, net of issuance costs, of approximately $281.2 million, less $36.8 million to purchase two privately-negotiated capped call option transactions in connection with the issuance of the notes. The 2023 Notes bear interest at the rate of 2.125% per year that is payable semi-annually in arrears in cash on January 15 and July 15 of each year, beginning on July 15, 2013.

The 2023 Notes were convertible, at the option of the holder, into shares of our common stock at an initial conversion rate of 35.9903 shares per $1,000 principal amount of the 2023 Notes, subject to adjustment in certain circumstances, which represents an initial conversion price of approximately $27.79 per share.

In connection with the offering of the 2023 Notes, we entered into two privately-negotiated capped call option transactions with a single counterparty. The capped call option transaction is an integrated instrument consisting of a call option on our common stock purchased by us with a strike price equal to the initial conversion price of $27.79 per share for the underlying number of shares and a cap price of $38.00 per share, both of which are subject to adjustments consistent with the 2023 Notes. The cap component is economically equivalent to a call option sold by us for the underlying number of shares with an initial strike price of $38.00 per share. As an integrated instrument, the settlement of the capped call coincides with the due date of the convertible debt. Upon settlement, we would receive from our hedge counterparty a number of shares of our common shares that would range from zero, if the stock price was below $27.79 per share, to a maximum of 2,779,659 shares, if the stock price is above $38.00 per share. However, if the market price of our common stock, as measured under the terms of the capped call transactions, exceeds $38.00 per share, there is no incremental anti-dilutive benefit from the capped call.

The partial conversion by certain holders of the 2023 Notes in July 2014, and dividends declared and paid in 2014 and 2015, the conversion rate with respect to our 2023 Notes was adjusted in total to 50.5818 shares of our common stock per $1,000 principal amount of the 2023 Notes, which represents a conversion price of approximately $19.77 per share. As a result of the conversion rate adjustments, the capped call strike price and cap price were also adjusted accordingly to $19.77 and $27.04, respectively.

For the year ending December 31, 2016, we retired a portion of our 2023 Notes with a face value of $14.1 million and carrying value of $13.9 million by way of purchase in the open market. The 2023 Notes were purchased for a total settlement price of $11.6 million resulting in a gain of $2.3 million, which is included in Other (expense) income, net in the consolidated statement of operations. As a result of the partial retirement of our 2023 Notes, we entered into partial termination agreement of the capped call option transaction described above. The partial termination agreement of the capped call option transaction enabled us to receive $0.6 million from the counterparty, which was recorded as an increase in additional paid-in capital in our consolidated balance sheets as of December 31, 2016.

Non-Recourse Notes Due 2029

In April 2014, we entered into certain note purchase agreements relating to the private placement of $450.0 million aggregate principal amount of non-recourse fixed rate term notes due 2029. The 2029 Notes had an annual interest rate of 9%, and prior to May 15, 2016, in the event that the specified portion of royalties received in a quarter was less than the interest accrued for the quarter, the principal amount of the 2029 Notes increased by the interest shortfall amount for that period, and considered as payment in kind ("PIK"). In total, $44.0 million of interest expense was added to the principal balance of the 2029 Note.

During the years ended December 31, 2017 and 2016, respectively, the principal balance of the 2029 Notes was paid down by $29.6 million and $6.8 million, respectively, with the payments received from the royalty revenues. In May 2017, we redeemed $50.0 million on the 2029 Notes.

In August 2017, we redeemed the remaining principal balance of $407.6 million with the net proceeds from the 2025 Notes and Term B Loan. In connection with the sale of the 2029 Notes in 2014, we incurred approximately $15.3 million in debt issuance costs, which were being amortized to interest expense over the estimated life of the 2029 Notes. With the redemptions of the 2029 Notes in 2017, we wrote off $7.3 million of unamortized debt issuance costs which is included in Other income (expense), net in our consolidated statements of operations.

Debt Maturities

The aggregate scheduled maturities of our long-term debt as of December 31, 2017 are as follows:

(In thousands)	December 31, 2017
Years ending December 31:
2018	$	25,000
2019		25,000
2020		25,000
2021		25,000
2022		143,750
Thereafter		433,484

Total	$	677,234

INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

10. INCOME TAXES

The impacts of the differences between the expected U.S. federal statutory income tax to our income tax expense are as follows:

	Year Ended December 31,
(In thousands)	2017			2016			2015
Expected tax at federal statutory rate	$	46,997		$	20,871		$	(6,372	)
State income tax, net of federal benefit		4			—			—
Non-deductible executive compensation		987			925			306
Other		(1,506	)		(122	)		170
Impact of tax reform rate change		124,017			—			—
Change in valuation allowance		(170,495	)		(21,579	)		5,896

Income tax expense	$	4		$	95		$	—

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and deferred tax liabilities are as follows:

	As of December 31,
(In thousands)	2017			2016
Deferred tax assets
Net operating loss carryforwards	$	257,000		$	417,000
Deferred revenues		—			1,000
Research and development tax credit carryforwards		57,000			53,000
Other		3,000			13,000

Total deferred tax assets before valuation allowance		317,000			484,000
Valuation allowance		(303,000	)		(484,000	)

Total deferred tax assets		14,000			—
Deferred tax liabilities
Debt issuance discount and other		(14,000	)		—

Net deferred tax assets	$	—		$	—

Realization of deferred tax assets is dependent on future taxable income. Accordingly, the deferred tax assets have been fully offset by a valuation allowance. The valuation allowance decreased by $181.2 million in the year ended December 31, 2017, increased by $20.6 million in the year ended December 31, 2016, and increased by $4.7 million in the year ended December 31, 2015.

The decrease in the valuation allowance in the year ended December 31, 2017 was primarily related to net operating losses utilization during 2017, and remeasurement of the deferred tax assets and liabilities due to enactment of Tax Cuts and Jobs Act. The increase in the valuation allowance in the year ended December 31, 2016 was primarily due to early adoption of the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, ("ASU 2016-09"), for which we recognized additional excess stock option tax benefits of $46.9 million in net operating loss carryforwards.

As of December 31, 2017, we had federal net operating loss carryforwards of approximately $1.0 billion, which will expire from 2026 through 2035, and federal research and development tax credit carryforwards of approximately $45.2 million, which will expire from 2018 through 2034. We also had state net operating loss carryforwards of approximately $654.2 million expiring in the years 2028 through 2035 and state research tax credits of approximately $32.3 million, which do not expire.

Utilization of net operating loss and tax credit carryforwards may be subject to a substantial annual limitation due to ownership change limitations provided by the Internal Revenue Code and similar state provisions. Annual limitations may result in expiration of net operating loss and tax credit carryforwards before some or all of such amounts have been utilized.

Our policy is to recognize interest and/or penalties related to income tax matters in income tax expense. As of December 31, 2017 and 2016, we had no accrued interest or penalties.

The Company conducted a 382 analysis through December 31, 2016 to determine whether an ownership change had occurred since inception. The Section 382 study concluded that it is more likely than not that the Company did not experience an ownership change during the testing period. However, notwithstanding the applicable annual limitations, no portion of the net operating loss or credit carryforwards are expected to expire before becoming available to reduce federal and state income tax liabilities as a result of those identified ownership changes. If we undergo another ownership change, the utilization of the pre-ownership change net operating loss carryforwards or pre-ownership change tax attributes, such as research tax credits, to offset the post-ownership change income may be subject to an annual limitation, pursuant to Section 382 and 383 of the Internal Revenue Code of 1986, as amended. Similar rules may apply under state tax laws.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to, reducing the U.S. federal corporate tax rate from 35% to 21%, and creating a new limitation on deductible interest expense. The Tax Act reduces the corporate tax rate to 21%, effective January 1, 2018.

The staff of the SEC has recognized the complexity of reflecting the impacts of the TCJA, and, on December 22, 2017, issued guidance in Staff Accounting Bulletin 118 ("SAB 118"). SAB 118 clarifies accounting for income taxes under ASC Topic 740, Income Taxes ("ASC 740"), if information is not yet available or complete and provides for up to a one-year period in which to complete the required analyses and accounting (the measurement period). SAB 118 describes three scenarios (or "buckets") associated with a company's status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply ASC 740, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted.

The Company has recognized the provisional tax impacts related to the revaluation of deferred tax assets and liabilities. The Company has recorded a net decrease related to federal deferred tax assets and deferred tax liabilities of $124.0 million, with an offsetting change in valuation allowance of $124.0 million for the year ended December 31, 2017. The ultimate impact may differ from provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018.

Uncertain Tax Positions

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits are as follows (in thousands):

Unrecognized tax benefits as of December 31, 2014	$	15,459
Gross increase in tax portions for 2015		29

Unrecognized tax benefits as of December 31, 2017, 2016 and 2015	$	15,488

In the event that we are able to recognize these uncertain positions, most of the $15.5 million of the unrecognized benefit would reduce our effective tax rate. We currently have a full valuation allowance against our deferred tax assets, which would impact the timing of the effective tax rate benefit, should any of these uncertain positions be favorably settled in the future. We do not believe it is reasonably possible that our unrecognized tax benefits will significantly change within the next twelve months.

We are subject to taxation in the U.S. and various state jurisdictions. The tax years 1999 and forward remain open to examination by the federal and most state tax authorities due to net operating loss and overall credit carryforward positions.

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2017

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)
(In thousands, except per share data)

The following table presents certain unaudited consolidated quarterly financial information for the eight quarters in the period ended December 31, 2017. This information has been prepared on the same basis as the audited consolidated financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the unaudited quarterly results of operations set forth herein.

	For the Quarters Ended
	March 31			June 30			September 30			December 31
2017
Net revenue	$	40,492		$	58,562		$	48,643		$	69,520
Total operating expenses		(11,149	)		(10,732	)		(8,621	)		(3,111	)
Income from operations		29,343			47,830			40,022			66,409
Net income		16,845			35,146			23,767			58,514
Net income attributable to noncontrolling interest		—			—			—			129
Net income attributable to Innoviva stockholders	$	16,845		$	35,146		$	23,767		$	58,385
Basic net income per share	$	0.16		$	0.33		$	0.22		$	0.55
Diluted net income per share	$	0.15		$	0.30		$	0.21		$	0.50

	For the Quarters Ended
	March 31			June 30			September 30			December 31
2016
Net revenue	$	24,176		$	32,472		$	33,309		$	43,612
Total operating expenses		(6,644	)		(6,595	)		(5,391	)		(5,951	)
Income from operations		17,532			25,877			27,918			37,661
Net income	$	4,435		$	14,597		$	15,033		$	25,471
Basic net income per share	$	0.04		$	0.13		$	0.14		$	0.24
Diluted net income per share	$	0.04		$	0.13		$	0.13		$	0.22

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Management's Estimates

Certain Risks and Concentrations

Segment Reporting

Variable Interest Entity

Cash and Cash Equivalents

Investments in Marketable Securities

Fair Value of Financial Instruments

Level 1—Quoted prices for identical instruments in active markets.

Level 3—Unobservable inputs and little, if any, market activity for the assets.

Property and Equipment

Property, equipment and leasehold improvements are stated at cost and depreciated using the straight-line method as follows:

Leasehold improvements		Shorter of remaining lease terms or useful life
Equipment, furniture and fixtures		5 - 7 years
Software and computer equipment		3 years

Depreciation expense for the years ended December 31, 2017, 2016 and 2015 was $0.2 million, $0.1 million and $0.1 million, respectively.

Capitalized Software

We capitalize certain costs related to direct material and service costs for software obtained for internal use. Capitalized software costs are depreciated over three years.

Capitalized Fees Paid to a Related Party

Revenue Recognition

Collaborative Arrangements and Multiple-Element Arrangements

Royalties

Allowance for Doubtful Accounts

Fair Value of Stock-Based Compensation Awards

Restricted stock units ("RSUs") and restricted stock awards ("RSAs") are measured based on the fair market values of the underlying stock on the dates of grant.

Compensation expense for purchases under the ESPP is recognized based on the fair value of the common stock on the date of offering, less the purchase discount percentage provided for in the plan.

Amortization of Debt Issuance Costs from Non Recourse Notes Due 2029

Amortization of Debt Issuance Costs from Non-Recourse Notes Due 2029

Income Taxes

The recognition and measurement of tax benefits requires significant judgment. Judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available.

Comprehensive Income (Loss)

Related Parties

GSK owned 31.4% of our outstanding common stock as of December 31, 2017. Transactions with GSK are described in Note 3, "Collaborative Arrangements".

Recently Issued Accounting Pronouncements Not Yet Adopted

NET INCOME (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2017

NET INCOME (LOSS) PER SHARE

Schedule of computation of basic and diluted net income (loss) per share

	Year Ended December 31,
(In thousands except per share data)	2017		2016		2015
Numerator:
Net income (loss) attributable to Innoviva stockholders, basic	$	134,143	$	59,536	$	(18,760	)
Add: interest expense on 2023 Notes		5,647		5,790		—

Net income (loss) attributable to Innoviva stockholders, diluted	$	139,790	$	65,326	$	(18,760	)


Denominator:
Weighted-average shares used to compute basic net income (loss) per share attributable to Innoviva stockholders		106,945		110,280		115,372
Dilutive effect of 2023 Notes		12,189		12,541		—
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan		732		412		—

Weighted-average shares used to compute diluted net income (loss) per share attributable to Innoviva stockholders		119,866		123,233		115,372


Net income (loss) per share attributable to Innoviva stockholders
Basic	$	1.25	$	0.54	$	(0.16	)


Diluted	$	1.17	$	0.53	$	(0.16	)

Schedule of anti-dilutive securities

	Year Ended December 31,
(In thousands)	2017		2016		2015
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan		2,121		4,073		6,934
Shares issuable upon conversion of 2023 Notes		—		—		12,904

		2,121		4,073		19,838

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2017

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS

Schedule of amortized cost and estimated fair values for available-for-sale securities

	December 31, 2017
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. government securities	$	9,943	$	—	$	(1	)	$	9,942
U.S. government agencies		9,987		—		(2	)		9,985
U.S. corporate notes		10,881		—		(15	)		10,866
U.S. commercial papers		29,945		—		—			29,945
Money market funds		61,971		—		—			61,971

Total	$	122,727	$	—	$	(18	)	$	122,709

	December 31, 2016
(In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	12,428	$	1	$	—	$	12,429
U.S. commercial papers		72,065		—		—		72,065
Money market funds		64,319		—		—		64,319

Total	$	148,812	$	1	$	—	$	148,813

Schedule of available-for-sale securities measured on a recurring basis

	Estimated Fair Value Measurements as of December 31, 2017 Using:
	Quoted Price in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Types of Instruments (In thousands)	Level 1		Level 2		Level 3		Total
Assets
U.S. government securities	$	—	$	9,942	$	—	$	9,942
U.S. government agencies		—		9,985		—		9,985
U.S. corporate notes		—		10,866		—		10,866
U.S. commercial papers		—		29,945		—		29,945
Money market funds		61,971		—		—		61,971

Total assets measured at estimated fair value	$	61,971	$	60,738	$	—	$	122,709


Liabilities
Term B Loan	$	—	$	243,750	$	—	$	243,750
2023 Notes		—		241,259		—		241,259
2025 Notes		—		205,975		—		205,975

Total fair value of liabilities	$	—	$	690,984	$	—	$	690,984

	Estimated Fair Value Measurements as of December 31, 2016 Using:
	Quoted Price in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Types of Instruments (In thousands)	Level 1		Level 2		Level 3		Total
Assets
U.S. government agencies	$	—	$	12,429	$	—	$	12,429
U.S. commercial papers		—		72,065		—		72,065
Money market funds		64,319		—		—		64,319

Total assets measured at estimated fair value	$	64,319	$	84,494	$	—	$	148,813


Liabilities
2023 Notes	$	—	$	202,125	$	—	$	202,125
2029 Notes		—		487,189		—		487,189

Total fair value of liabilities	$	—	$	689,314	$	—	$	689,314

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

STOCK BASED COMPENSATION

Schedule of stock-based compensation expense

	Year Ended December 31,
(In thousands)	2017		2016		2015
Research and development	$	697	$	632	$	1,036
General and administrative		9,136		7,665		5,837

Total stock-based compensation expense	$	9,833	$	8,297	$	6,873

Schedule of stock-based compensation expense included in the consolidated statements of operations by award type

	Year Ended December 31,
(In thousands)	2017		2016		2015
Stock options	$	593	$	632	$	789
RSUs		2,282		1,920		2,492
RSAs		4,497		3,492		2,850
Performance-based RSAs		242		1,293		613
Market-based RSUs		291		112		—
Market-based RSAs		1,855		693		—
ESPP		73		155		129

Total stock-based compensation expense	$	9,833	$	8,297	$	6,873

Schedule of unrecognized stock-based compensation cost and the estimated weighted-average amortization period

As of December 31, 2017, the unrecognized stock-based compensation cost and the estimated weighted-average amortization period were as follows:

(In thousands)	Unrecognized Compensation Cost		Weighted-Average Amortization Period (Years)
Stock options	$	305		0.5
RSUs		1,487		0.9
RSAs		7,764		2.4
Market-based RSUs		285		0.9
Market-based RSAs		1,943		1.0

Total unrecognized compensation cost	$	11,784

Summary of equity award activity under the 2012 plan and prior plans

(In thousands, except per share data)	Number of outstanding options			Weighted- Average Exercise Price of Outstanding Options		Number of outstanding RSUs and PSUs			Weighted- Average Fair Value per Share at Grant		Number of outstanding RSAs and PSAs			Weighted- Average Fair Value per Share at Grant
Balance as of December 31, 2016		2,900		$	23.72		413		$	15.29		1,125		$	13.67
Granted		—			—		255			11.38		774			9.53
Exercised		(16	)		11.81		—			—		—			—
Released RSUs/RSAs		—			—		(278	)		15.88		(412	)		14.87
Forfeited		(1,244	)		23.63		(20	)		12.62		(39	)		13.19

Balance as of December 31, 2017		1,640			23.90		370			11.57		1,448			9.95

Schedule of weighted-average assumptions used to estimate the fair value of stock options granted and employee stock purchase plan issuances

	Year Ended December 31,
	2017	2016	2015
Employee stock purchase plan issuances
Risk-free interest rate	1.4% - 1.7%	0.4% - 1.0%	0.1% - 0.9%
Expected term (in years)	0.5 - 2	0.5 - 2	0.5 - 2
Volatility	35% - 44%	39% - 66%	44% - 69%
Dividend yield	0%	0%	0% - 6%
Weighted-average estimated fair value of ESPP shares granted	$3.90	$4.47	$4.52

DEBT (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of debt

	December 31,
(In thousands)	2017			2016
Senior secured term loans	$	243,750		$	—
Convertible subordinated notes due 2023		240,984			240,984
Convertible senior notes due 2025		192,500			—
Non-recourse notes due 2029		—			487,189

Total debt		677,234			728,173
Unamortized debt discount and issuance costs		(77,872	)		(12,080	)
Current portion of senior secured term loan		(25,000	)		—
Current portion of non-recourse notes due 2029		—			(7,752	)

Net long-term debt	$	574,362		$	708,341

Aggregate scheduled maturities of long-term debt

(In thousands)	December 31, 2017
Years ending December 31:
2018	$	25,000
2019		25,000
2020		25,000
2021		25,000
2022		143,750
Thereafter		433,484

Total	$	677,234

2025 Notes

Summary of liability and equity components of convertible notes

(In thousands)	December 31, 2017
Liability component
Principal	$	192,500
Debt discount and issuance costs, net		(68,342	)

Net carrying amount	$	124,158


Equity component, net	$	65,361

Schedule of components of interest expense

(In thousands)	December 31, 2017
Contractual interest expense	$	1,925
Amortization of debt issuance costs		189
Amortization of debt discount		2,268

Total interest and amortization expense	$	4,382

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of impacts of the differences between the expected U.S. federal statutory income tax to our income tax expense

	Year Ended December 31,
(In thousands)	2017			2016			2015
Expected tax at federal statutory rate	$	46,997		$	20,871		$	(6,372	)
State income tax, net of federal benefit		4			—			—
Non-deductible executive compensation		987			925			306
Other		(1,506	)		(122	)		170
Impact of tax reform rate change		124,017			—			—
Change in valuation allowance		(170,495	)		(21,579	)		5,896

Income tax expense	$	4		$	95		$	—

Schedule of significant components of the Company's deferred tax assets and deferred tax liabilities

	As of December 31,
(In thousands)	2017			2016
Deferred tax assets
Net operating loss carryforwards	$	257,000		$	417,000
Deferred revenues		—			1,000
Research and development tax credit carryforwards		57,000			53,000
Other		3,000			13,000

Total deferred tax assets before valuation allowance		317,000			484,000
Valuation allowance		(303,000	)		(484,000	)

Total deferred tax assets		14,000			—
Deferred tax liabilities
Debt issuance discount and other		(14,000	)		—

Net deferred tax assets	$	—		$	—

Summary of changes in unrecognized tax benefits

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits are as follows (in thousands):

Unrecognized tax benefits as of December 31, 2014	$	15,459
Gross increase in tax portions for 2015		29

Unrecognized tax benefits as of December 31, 2017, 2016 and 2015	$	15,488

NET INCOME (LOSS) PER SHARE - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Aug. 07, 2017
Numerator:
Net income (loss) attributable to Innoviva stockholders, basic	$ 58,385	$ 23,767	$ 35,146	$ 16,845					$ 134,143	$ 59,536	$ (18,760)
Add: interest expense on 2023 Notes									5,647	5,790	0
Net income (loss) attributable to Innoviva stockholders, diluted									$ 139,790	$ 65,326	$ (18,760)
Denominator:
Weighted-average shares used to compute basic net income (loss) per share attributable to Innoviva stockholders									106,945,000	110,280,000	115,372,000
Dilutive effect of 2023 Notes									12,189,000	12,541,000	0
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan									732,000	412,000	0
Weighted-average shares used to compute diluted net income (loss) per share attributable to Innoviva stockholders									119,866,000	123,233,000	115,372,000
Net income (loss) per share attributable to Innoviva stockholders
Basic net income per share	$ 0.55	$ 0.22	$ 0.33	$ 0.16	$ 0.24	$ 0.14	$ 0.13	$ 0.04	$ 1.25	$ 0.54	$ (0.16)
Diluted net income per share	0.50	$ 0.21	$ 0.30	$ 0.15	$ 0.22	$ 0.13	$ 0.13	$ 0.04	$ 1.17	$ 0.53	$ (0.16)
Convertible senior notes \| 2025 Notes
Net income (loss) per share
Dilutive effect of 2025 Notes									0
Convertible senior notes \| 2025 Notes \| Common Stock
Net income (loss) per share
Conversion price of convertible notes into common stock (in dollars per share)	$ 17.26								$ 17.26			$ 17.26

COLLABORATIVE ARRANGEMENTS (Details) - USD ($)	3 Months Ended								12 Months Ended
COLLABORATIVE ARRANGEMENTS (Details) - USD ($)	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Information related to collaborative arrangements
Less: amortization of capitalized fees paid to a related party									$ (13,823,000)	$ (13,823,000)	$ (13,823,000)
Royalty revenue									214,118,000	132,684,000	53,064,000
Strategic alliance - MABA program license									3,099,000	885,000	885,000
Total net revenue	$ 69,520,000	$ 48,643,000	$ 58,562,000	$ 40,492,000	$ 43,612,000	$ 33,309,000	$ 32,472,000	$ 24,176,000	217,217,000	133,569,000	53,949,000
GSK
Information related to collaborative arrangements
Total net revenue									$ 217,217,000	133,569,000	53,949,000
LABA collaboration and Strategic Alliance agreements \| GSK
Information related to collaborative arrangements
Percentage of economic interest in any future payments made under the agreements									15.00%
Long-acting beta agonist (LABA) collaboration \| GSK
Information related to collaborative arrangements
Royalties from a related party									$ 227,941,000	146,507,000	66,887,000
Less: amortization of capitalized fees paid to a related party									(13,823,000)	(13,823,000)	(13,823,000)
Royalty revenue									214,118,000	132,684,000	53,064,000
Milestone fees paid												$ 220,000,000
Obligation for milestone payments	$ 0								$ 0
Percentage of economic interest in any future payments made under the agreements									15.00%
Long-acting beta agonist (LABA) collaboration \| GSK \| RELVAR/BREO
Information related to collaborative arrangements
Royalties from a related party									$ 198,726,000	128,638,000	59,188,000
Royalty rate for first level of annual global net sales (as a percent)									15.00%
Annual global sales level used to determine royalty rate									$ 3,000,000,000
Royalty rate for sales above first level of annual global net sales (as a percent)									5.00%
Long-acting beta agonist (LABA) collaboration \| GSK \| ANORO
Information related to collaborative arrangements
Royalties from a related party									$ 29,036,000	17,869,000	7,699,000
Long-acting beta agonist (LABA) collaboration \| GSK \| ANORO \| Minimum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)									6.50%
Long-acting beta agonist (LABA) collaboration \| GSK \| ANORO \| Maximum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)									10.00%
Long-acting beta agonist (LABA) collaboration \| GSK \| TRELEGY
Information related to collaborative arrangements
Royalties from a related party									$ 179,000	0	0
Long-acting beta agonist (LABA) collaboration \| GSK \| TRELEGY \| Minimum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)									6.50%
Long-acting beta agonist (LABA) collaboration \| GSK \| TRELEGY \| Maximum
Information related to collaborative arrangements
Royalty rate for combination products (as a percent)									10.00%
Strategic alliance - MABA program license \| GSK
Information related to collaborative arrangements
Strategic alliance - MABA program license									$ 3,099,000	$ 885,000	$ 885,000

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS - Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Recurring basis
Assets
Total assets measured at estimated fair value	$ 122,709	$ 148,813
Recurring basis \| U.S. government securities
Assets
Total assets measured at estimated fair value	9,942
Recurring basis \| U.S. government agencies
Assets
Total assets measured at estimated fair value	9,985	12,429
Recurring basis \| U.S. corporate notes
Assets
Total assets measured at estimated fair value	10,866
Recurring basis \| U.S. commercial papers
Assets
Total assets measured at estimated fair value	29,945	72,065
Recurring basis \| Money market funds
Assets
Total assets measured at estimated fair value	61,971	64,319
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1
Assets
Total assets measured at estimated fair value	61,971	64,319
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| U.S. government securities
Assets
Total assets measured at estimated fair value	0
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| U.S. government agencies
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| U.S. corporate notes
Assets
Total assets measured at estimated fair value	0
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| U.S. commercial papers
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| Money market funds
Assets
Total assets measured at estimated fair value	61,971	64,319
Recurring basis \| Significant Other Observable Inputs, Level 2
Assets
Total assets measured at estimated fair value	60,738	84,494
Recurring basis \| Significant Other Observable Inputs, Level 2 \| U.S. government securities
Assets
Total assets measured at estimated fair value	9,942
Recurring basis \| Significant Other Observable Inputs, Level 2 \| U.S. government agencies
Assets
Total assets measured at estimated fair value	9,985	12,429
Recurring basis \| Significant Other Observable Inputs, Level 2 \| U.S. corporate notes
Assets
Total assets measured at estimated fair value	10,866
Recurring basis \| Significant Other Observable Inputs, Level 2 \| U.S. commercial papers
Assets
Total assets measured at estimated fair value	29,945	72,065
Recurring basis \| Significant Other Observable Inputs, Level 2 \| Money market funds
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Significant Unobservable Inputs, Level 3
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Significant Unobservable Inputs, Level 3 \| U.S. government securities
Assets
Total assets measured at estimated fair value	0
Recurring basis \| Significant Unobservable Inputs, Level 3 \| U.S. government agencies
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Significant Unobservable Inputs, Level 3 \| U.S. corporate notes
Assets
Total assets measured at estimated fair value	0
Recurring basis \| Significant Unobservable Inputs, Level 3 \| U.S. commercial papers
Assets
Total assets measured at estimated fair value	0	0
Recurring basis \| Significant Unobservable Inputs, Level 3 \| Money market funds
Assets
Total assets measured at estimated fair value	0	0
Nonrecurring basis \| Debt Securities
Liabilities
Term B Loan	243,750
2023 Notes	241,259	202,125
2025 Notes	205,975
2029 Notes		487,189
Total fair value of liabilities	690,984	689,314
Nonrecurring basis \| Quoted Prices in Active Markets for Identical Assets, Level 1 \| Debt Securities
Liabilities
Term B Loan	0
2023 Notes	0	0
2025 Notes	0
2029 Notes		0
Total fair value of liabilities	0	0
Nonrecurring basis \| Significant Other Observable Inputs, Level 2 \| Debt Securities
Liabilities
Term B Loan	243,750
2023 Notes	241,259	202,125
2025 Notes	205,975
2029 Notes		487,189
Total fair value of liabilities	690,984	689,314
Nonrecurring basis \| Significant Unobservable Inputs, Level 3 \| Debt Securities
Liabilities
Term B Loan	0
2023 Notes	0	0
2025 Notes	0
2029 Notes		0
Total fair value of liabilities	$ 0	$ 0

STOCK-BASED COMPENSATION - Compensation Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stock options
Number of outstanding options
Balance at the beginning of the period (in shares)	2,900
Granted (in shares)	0
Exercised (in shares)	(16)
Forfeited (in shares)	(1,244)
Balance at the end of the period (in shares)	1,640	2,900
Weighted-Average Exercise Price of Outstanding Options
Balance at the beginning of the period (in dollars per share)	$ 23.72
Granted (in dollars per share)	0.00
Exercised (in dollars per share)	11.81
Forfeited (in dollars per share)	23.63
Balance at the end of the period (in dollars per share)	$ 23.90	$ 23.72
Additional disclosures
Aggregate intrinsic value of options outstanding	$ 0.4
Aggregate intrinsic value of options exercisable	0.4
Total intrinsic value of options exercised			$ 0.5
Total estimated fair value of options vested	$ 3.8	$ 4.7	10.0
RSUs and PSUs
Number of outstanding RSUs and PSUs/RSAs and PSAs
Balance at the beginning of the period (in shares)	413
Granted (in shares)	255
Released RSUs and RSAs (in shares)	(278)
Forfeited (in shares)	(20)
Balance at the end of the period (in shares)	370	413
Weighted-Average Fair Value per Share at Grant
Balance at the beginning of the period (in dollars per share)	$ 15.29
Granted (in dollars per share)	11.38
Released RSUs and RSAs (in dollars per share)	15.88
Forfeited (in dollars per share)	12.62
Balance at the end of the period (in dollars per share)	$ 11.57	$ 15.29
Additional disclosures
Total estimated fair value of options vested	$ 2.6	$ 3.9	5.6
RSAs and PSAs
Number of outstanding RSUs and PSUs/RSAs and PSAs
Balance at the beginning of the period (in shares)	1,125
Granted (in shares)	774
Released RSUs and RSAs (in shares)	(412)
Forfeited (in shares)	(39)
Balance at the end of the period (in shares)	1,448	1,125
Weighted-Average Fair Value per Share at Grant
Balance at the beginning of the period (in dollars per share)	$ 13.67
Granted (in dollars per share)	9.53
Released RSUs and RSAs (in dollars per share)	14.87
Forfeited (in dollars per share)	13.19
Balance at the end of the period (in dollars per share)	$ 9.95	$ 13.67
Additional disclosures
Total estimated fair value of options vested	$ 6.3	$ 14.7	$ 22.3

DEBT - Senior Secured Term Loans (Details) - USD ($) $ in Thousands	Aug. 18, 2017	Dec. 31, 2017	Dec. 31, 2016
Debt
Current portion of long-term debt		$ 25,000	$ 7,752
Senior secured term loans
Debt
Current portion of long-term debt		25,000	$ 0
Senior secured term loans \| Maximum
Debt
Percent of excess cash flow	50.00%
Senior secured term loans \| Minimum
Debt
Percent of excess cash flow	0.00%
Term B Loan \| Senior secured term loans
Debt
Loan amount	$ 250,000
Quarterly payment, as a percent of initial issue amount	2.50%
Original interest discount	$ 2,500
Debt issuance costs	$ 4,900
Principal balance		243,800
Current portion of long-term debt		$ 25,000
Wholly-owned, domestic guarantor subsidiaries \| Senior secured term loans \| Minimum
Debt
Threshold, as a percent of consolidated assets	5.00%
Threshold, as a percent of consolidated net revenues	5.00%
Other domestic restricted guarantor subsidiaries \| Senior secured term loans \| Minimum
Debt
Threshold, as a percent of consolidated assets	10.00%
Threshold, as a percent of consolidated net revenues	10.00%
LIBOR \| Term B Loan \| Senior secured term loans
Debt
Variable rate basis	three-month LIBOR
Basis spread on variable rate	4.50%
LIBOR \| Term B Loan \| Interest rate option one \| Senior secured term loans
Debt
Variable rate basis	LIBOR
Basis spread on variable rate	4.50%
Base rate \| Term B Loan \| Interest rate option two \| Senior secured term loans
Debt
Variable rate basis	base rate
Basis spread on variable rate	3.50%

DEBT - Convertible Senior Notes (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 07, 2017 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) shares	Dec. 31, 2015 USD ($) shares	Aug. 01, 2017 $ / shares
Debt
Value of shares repurchased and retired		$ 97,500	$ 78,094	$ 25,636
Common Stock
Debt
Share Price \| $ / shares					$ 13.28
Number of shares repurchased and retired \| shares		7,430,000	7,201,000	2,676,000
Value of shares repurchased and retired		$ 75	$ 72	$ 27
2025 Notes
Debt
debt discount		$ 67,300
Convertible senior notes \| 2025 Notes \| Over-Allotment Option
Debt
Loan amount	$ 17,500
Convertible senior notes \| 2025 Notes \| Private Placement
Debt
Loan amount	$ 192,500
Interest rate (as a percent)	2.50%
Convertible senior notes \| 2025 Notes \| Common Stock
Debt
Conversion rate	57.9240
Conversion price (dollars per share) \| $ / shares	$ 17.26	$ 17.26
Conversion premium (as a percent)	30.00%
Number of shares repurchased and retired \| shares	1,317,771
Value of shares repurchased and retired	$ 17,500

DEBT - Convertible Subordinated Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2013 USD ($) item $ / shares $ / item shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) $ / shares $ / item shares
Debt
Settlement amount for purchase of notes		$ 0	$ 11,570	$ 0
Amount received from capped call option		$ 0	578	$ 0
2023 Notes \| Convertible subordinated notes
Debt
Loan amount	$ 287,500
Proceeds from issuance of notes payable, net of debt issuance costs	$ 281,200
Interest rate (as a percent)	2.125%
Initial conversion, shares per $1,000 principal amount \| shares \| shares	35.9903
Adjusted conversion, shares per $1,000 principal amount \| shares				50.5818
Conversion price of convertible notes into common stock (in dollars per share) \| $ / shares	$ 27.79			$ 19.77
Portion of debt retired, face value			14,100
Portion of debt retired, carrying value			13,900
Settlement amount for purchase of notes			11,600
2023 Notes \| Convertible subordinated notes \| Other (expense) income
Debt
Gain (Loss) on Repurchase of Debt Instrument			2,300
2023 Notes \| Convertible subordinated notes \| Privately-negotiated capped call option
Debt
Payments for capped call options	$ 36,800
Number of derivative instruments purchased \| item	2
Strike price for the underlying number of shares (in dollars per share) \| $ / shares	$ 27.79			$ 19.77
Cap price for the underlying number of shares (in dollars per share) \| $ / item	38.00			27.04
Amount received from capped call option			$ 600
2023 Notes \| Convertible subordinated notes \| Stock prices below $27.79 per share \| Minimum
Debt
Net shares settlement payable to the entity \| shares	0
2023 Notes \| Convertible subordinated notes \| Stock prices above $38.00 per share \| Maximum
Debt
Net shares settlement payable to the entity \| shares	2,779,659

COMMITMENTS AND CONTINGENCIES - Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Lease and Lease Guarantee
Amortization of lease guarantee	$ (325)	$ (190)	$ 0
Future minimum lease payments
2018	392
2019	403
2020	416
2021	428
2022	441
Thereafter	201
Total lease payments	2,281
Lease payments guarantee
Operating Lease and Lease Guarantee
Amortization of lease guarantee	300	$ 200
Future minimum lease payments
Total lease payments	15,600
Lease payments guarantee \| Other long-term liabilities
Operating Lease and Lease Guarantee
Carrying value of lease guarantee	$ 800

INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets
Net operating loss carryforwards	$ 257,000	$ 417,000
Deferred revenues	0	1,000
Research and development tax credit carryforwards	57,000	53,000
Other	3,000	13,000
Total deferred tax assets before valuation allowance	317,000	484,000
Valuation allowance	(303,000)	(484,000)
Total deferred tax assets	14,000	0
Deferred tax liabilities
Debt issuance discount and other	(14,000)	0
Net deferred tax assets	0	0
Changes in valuation allowance
Increase (decrease) in valuation allowance	$ (181,200)	20,600	$ 4,700
Early adoption \| ASU 2016-09
Changes in valuation allowance
Excess stock option tax benefits		$ 46,900

SUPPLEMENTARY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
SUPPLEMENTARY FINANCIAL DATA (UNAUDITED)
Net revenue	$ 69,520	$ 48,643	$ 58,562	$ 40,492	$ 43,612	$ 33,309	$ 32,472	$ 24,176	$ 217,217	$ 133,569	$ 53,949
Total operating expenses	(3,111)	(8,621)	(10,732)	(11,149)	(5,951)	(5,391)	(6,595)	(6,644)	(33,613)	(24,581)	(22,369)
Income from operations	66,409	40,022	47,830	29,343	37,661	27,918	25,877	17,532	183,604	108,988	31,580
Net income	58,514	23,767	35,146	16,845	$ 25,471	$ 15,033	$ 14,597	$ 4,435	134,272	59,536	(18,760)
Net income attributable to noncontrolling interest	129	0	0	0					129	0	0
Net income attributable to the Innoviva stockholders	$ 58,385	$ 23,767	$ 35,146	$ 16,845					$ 134,143	$ 59,536	$ (18,760)
Basic net income per share	$ 0.55	$ 0.22	$ 0.33	$ 0.16	$ 0.24	$ 0.14	$ 0.13	$ 0.04	$ 1.25	$ 0.54	$ (0.16)
Diluted net income per share	$ 0.50	$ 0.21	$ 0.30	$ 0.15	$ 0.22	$ 0.13	$ 0.13	$ 0.04	$ 1.17	$ 0.53	$ (0.16)

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	230	230
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	102,046	108,585
Treasury stock, shares	150	150

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF OPERATIONS
Amortization of capitalized fees paid to a related party	$ 13,823	$ 13,823	$ 13,823

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 134,272	$ 59,536	$ (18,760)
Other comprehensive income (loss):
Unrealized (loss) gain on marketable securities, net	(19)	3	1,305
Less: realized gain on marketable securities, net	0	0	(1,220)
Comprehensive income (loss)	134,253	59,539	(18,675)
Comprehensive income attributable to noncontrolling interest	129	0	0
Comprehensive income (loss) attributable to Innoviva stockholders	$ 134,124	$ 59,539	$ (18,675)

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS On February 12, 2018, the Company entered into an agreement with Sarissa Capital Management LP, and certain of its affiliates (collectively, the "Sarissa Group") related to the Company's 2018 Annual Meeting of Stockholders (the "2018 Meeting"). The agreement provided for, among other things, the concurrent appointment of three designees of the Sarissa Group as members of the Company's Board of Directors and an agreement to recommend and nominate a five-person slate of directors for election at the 2018 Annual Meeting composed of the three new directors and two current directors of the Company and pay the Sarissa Group $2.7 million, which is considered a related party transaction under GAAP as two of Sarissa Capital's principals are the members of the Company's Board of Directors. As previously disclosed on a Current Report on Form 8-K filed with the SEC on February 7, 2018, the Company announced the (i) appointment of Eric d'Esparbes as the Company's interim Principal Executive Officer, effective February 6, 2018, following the resignation of the Company's former President and Chief Executive Officer at the request of the Board of Directors; and (ii) the resignation of its former chief business officer effective February 7, 2018.

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property and Equipment
Property and equipment, net	$ 209	$ 368
Depreciation expense	$ 200	$ 100	$ 100
Capitalized Fees Paid to a Related Party
Capitalized fees paid to a related party, useful life	15 years
Equipment, furniture and fixtures \| Minimum
Property and Equipment
Estimated useful life	5 years
Equipment, furniture and fixtures \| Maximum
Property and Equipment
Estimated useful life	7 years
Software and computer equipment
Property and Equipment
Estimated useful life	3 years
Capitalized software
Property and Equipment
Estimated useful life	3 years

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Description of Operations (Details)	12 Months Ended
	Dec. 31, 2017
GSK \| LABA collaboration and Strategic Alliance agreements
Description of Operations and Summary of Significant Accounting Policies
Percentage of economic interest in any future payments made under the agreements	15.00%

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues and Notes Payable (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2017	May 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Apr. 30, 2014
Revenue recognition
Allowance for doubtful accounts			$ 0
Amortization of Debt Issuance Costs from Non-Recourse Notes Due 2029
Payment of principal on non-recourse notes due 2029			487,189	$ 6,828	$ 0
Loss on extinguishment debt			(7,256)	2,342	$ 0
Income Taxes
Unrecognized tax benefits would affect our effective income tax rate if recognized			0
Non-Recourse Notes \| 2029 Notes
Amortization of Debt Issuance Costs from Non-Recourse Notes Due 2029
Payment of principal on non-recourse notes due 2029	$ 407,600	$ 50,000	29,600	$ 6,800
Loss on extinguishment debt	$ (7,300)
Non-Recourse Notes \| Private Placement \| 2029 Notes
Amortization of Debt Issuance Costs from Non-Recourse Notes Due 2029
Non-Recourse Debt						$ 450,000
Interest rate (as a percent)						9.00%
Debt issuance costs						$ 15,300
Strategic alliance - MABA program license
Revenue recognition
Remaining deferred revenue performance obligation			$ 0

DESCRIPTION OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Related Party Transactions (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Related Parties
Investments in related party	$ 0.0
GSK
Related Parties
Percentage of common stock owned	31.40%
BlackRock, Inc
Related Parties
Investments in related party		$ 64.3
BlackRock, Inc \| Minimum
Related Parties
Percentage of common stock owned	10.00%

AVAILABLE-FOR-SALE SECURITIES AND FAIR VALUE MEASUREMENTS - Available-for-Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Available-for-Sale Securities
Amortized Cost	$ 122,727	$ 148,812
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(18)	0
Estimated Fair Value	$ 122,709	148,813
Maturity period for marketable securities
Maximum contractual maturity period	1 year
Average maturity	3 months
U.S. government securities
Available-for-Sale Securities
Amortized Cost	$ 9,943
Gross Unrealized Gains	0
Gross Unrealized Losses	(1)
Estimated Fair Value	9,942
U.S. government agencies
Available-for-Sale Securities
Amortized Cost	9,987	12,428
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(2)	0
Estimated Fair Value	9,985	12,429
U.S. corporate notes
Available-for-Sale Securities
Amortized Cost	10,881
Gross Unrealized Gains	0
Gross Unrealized Losses	(15)
Estimated Fair Value	10,866
U.S. commercial papers
Available-for-Sale Securities
Amortized Cost	29,945	72,065
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	29,945	72,065
Money market funds
Available-for-Sale Securities
Amortized Cost	61,971	64,319
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 61,971	$ 64,319

STOCK-BASED COMPENSATION - 2012 Plan and ESPP (Details)	12 Months Ended
STOCK-BASED COMPENSATION - 2012 Plan and ESPP (Details)	Dec. 31, 2017 USD ($) item shares
2012 Equity Incentive Plan
Stock-based compensation
Shares remaining available for issuance	3,411,107
ESPP \| Employee Stock
Stock-based compensation
Purchase price as a percentage of fair market value of stock	85.00%
Total duration of consecutive and overlapping offering periods	24 months
Number of offering periods \| item	4
Duration of purchase period	6 months
Maximum contributions as a percentage of employee's eligible compensation	15.00%
Maximum number of shares an employee may purchase during any purchase period	2,500
Maximum value of shares an employee may purchase in a calendar year \| $	$ 25,000
Shares remaining available for issuance	205,979

STOCK-BASED COMPENSATION - RSAs and RSUs (Details) - Senior Management - USD ($) $ in Millions			12 Months Ended
	Jan. 17, 2017	Jan. 14, 2016	Dec. 31, 2011
Performance-Contingent RSAs and RSUs \| Long-term retention and incentive performance-contingent RSAs
Stock-based compensation
Vested (in shares)			63,000
Timeframe for achievement of performance conditions			6 years
Market-Based RSAs and RSUs \| TSR and Performance Measures
Stock-based compensation
Timeframe for calculation of TSR	2 years	2 years
Minimum payout of shares (in shares)	0	0
Maximum payout of shares (in shares)	406,868	328,688
Aggregate value recognized as compensation expense	$ 3.2	$ 2.0
Market-Based RSAs and RSUs \| TSR and Performance Measures \| Vesting on February 20, 2018
Stock-based compensation
Vesting percentage		67.00%
Market-Based RSAs and RSUs \| TSR and Performance Measures \| Vesting on February 20, 2019
Stock-based compensation
Vesting percentage	66.70%
Market-Based RSAs \| TSR and Performance Measures
Stock-based compensation
Granted (in shares)	353,508	282,394
Market-Based RSAs \| TSR and Performance Measures \| Vesting on February 20, 2019
Stock-based compensation
Vesting percentage		33.30%
Market-Based RSAs \| TSR and Performance Measures \| Vesting on February 20, 2020
Stock-based compensation
Vesting percentage	33.30%
Market-Based RSUs \| TSR and Performance Measures
Stock-based compensation
Granted (in shares)	53,360	46,294
Market-Based RSUs \| TSR and Performance Measures \| Vesting on November 20, 2018
Stock-based compensation
Vesting percentage		33.30%
Market-Based RSUs \| TSR and Performance Measures \| Vesting on November 20, 2019
Stock-based compensation
Vesting percentage	33.30%

STOCK-BASED COMPENSATION - Director Compensation Program (Details) - RSUs - Non-employee director	1 Months Ended	9 Months Ended
	Oct. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 installment
Stock-based compensation
One time grant of shares, value	$ 125,000	$ 250,000
Pro rata shares grant, value	225,000	250,000
Number of annual installments \| installment			2
Annual grant of shares, value	$ 225,000	$ 250,000

DEBT - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Debt
Total long-term debt	$ 677,234	$ 728,173
Unamortized debt discount and issuance costs	(77,872)	(12,080)
Current portion of long term debt	(25,000)	(7,752)
Net long-term debt	574,362	708,341
Senior secured term loans
Debt
Total long-term debt	243,750	0
Current portion of long term debt	(25,000)	0
Convertible subordinated notes
Debt
Total long-term debt	240,984	240,984
Convertible senior notes
Debt
Total long-term debt	192,500	0
Non-Recourse Notes
Debt
Total long-term debt	0	487,189
Current portion of long term debt	$ 0	$ (7,752)

DEBT - Convertible Senior Notes - Liability and Equity Components (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Liability component
Principal	$ 677,234	$ 728,173
Debt discount and issuance costs, net	(77,872)	(12,080)
Convertible senior notes
Liability component
Principal	192,500	$ 0
Convertible senior notes \| 2025 Notes
Liability component
Principal	192,500
Debt discount and issuance costs, net	(68,342)
Net carrying amount	124,158
Equity component, net	$ 65,361

DEBT - Debt Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Long-term debt maturities
2018	$ 25,000
2019	25,000
2020	25,000
2021	25,000
2022	143,750
Thereafter	433,484
Total long-term debt	$ 677,234	$ 728,173

SHAREHOLDERS' DEFICIT - Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Oct. 30, 2015	Aug. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Feb. 28, 2017
Share Repurchase Program
Value of shares repurchased and retired			$ 97,500	$ 78,094	$ 25,636
Common Stock
Share Repurchase Program
Number of shares repurchased and retired			7,430,000	7,201,000	2,676,000
Value of shares repurchased and retired			$ 75	$ 72	$ 27
2017 Capital Return Plan
Share Repurchase Program
Amount approved under share repurchase program						$ 150,000
2017 Capital Return Plan \| Common Stock
Share Repurchase Program
Number of shares repurchased and retired		1,317,771
Value of shares repurchased and retired		$ 17,500
ASR Plan \| Common Stock
Share Repurchase Program
Number of shares repurchased and retired			6,112,000
Value of shares repurchased and retired			$ 80,000
Average repurchase price per share			$ 13.09
2016 Share Repurchase Program \| Common Stock
Share Repurchase Program
Number of shares repurchased and retired				7,201,000	100,000
Value of shares repurchased and retired				$ 78,095	$ 995
Average repurchase price per share				$ 10.84	$ 9.95
October 2015 TO \| Common Stock
Share Repurchase Program
Number of shares repurchased and retired					2,576,000
Value of shares repurchased and retired					$ 24,641
Average repurchase price per share					$ 9.56
Minimum \| October 2015 TO \| Common Stock
Share Repurchase Program
Price per share under share repurchase program	$ 8.50
Maximum \| October 2015 TO \| Common Stock
Share Repurchase Program
Amount approved under share repurchase program	$ 75,000
Price per share under share repurchase program	$ 9.25

COMMITMENTS AND CONTINGENCIES - Legal Actions (Details) - director	1 Months Ended
	Dec. 31, 2017	Nov. 30, 2017
Specific performance litigation
Commitments and contingencies
Number of board of directors	8	6

INCOME TAXES - Additional Tax Disclosures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Taxes
Accrued interest and penalties		$ 0	$ 0
Federal corporate tax rate (as a percent)		35.00%
Net decrease related to federal deferred tax assets and deferred tax liabilities		$ 124,000
Change in valuation allowance		124,000
Gross unrecognized tax benefits
Unrecognized tax benefits, beginning of year	$ 15,488	15,488	15,488	$ 15,459
Gross increase in tax portions		0	0	29
Unrecognized tax benefits, end of year		15,488	$ 15,488	$ 15,488
Forecast
Income Taxes
Federal corporate tax rate (as a percent)	21.00%
Federal
Income Taxes
Net operating loss carryforwards		1,000,000
Federal \| Research and development
Income Taxes
Tax credit carryforward amount		45,200
State
Income Taxes
Net operating loss carryforwards		654,200
State \| Research and development
Income Taxes
Tax credit carryforward amount		$ 32,300

SUBSEQUENT EVENTS (Details) - Subsequent events - Sarissa Group $ in Millions	Feb. 12, 2018 USD ($) director
Subsequent Events
Appointment of designees as as members of the Company's Board of Directors	3
Total number of directors nominated for election	5
Number of new directors nominated for election	3
Number of current directors nominated for election	2
Payments for agreements with related parties \| $	$ 2.7
Number of related party principals are the members of the Company's Board of Directors	2