Executive Summary / Key Takeaways

• Invivyd is transitioning from a development-stage company to a commercial entity, leveraging its proprietary platform for rapid, serial monoclonal antibody (mAb) development targeting evolving viral threats, starting with SARS-CoV-2.
• The launch of PEMGARDA (pemivibart) for COVID-19 pre-exposure prophylaxis (PrEP) in immunocompromised individuals is generating initial revenue ($11.3M in Q1 2025), showing early signs of acceleration in Q2 2025 despite prior commercial headwinds, and is foundational to the company's near-term financial goals.
• The company is aggressively managing operating expenses, achieving a 15% reduction quarter-over-quarter in Q1 2025, significantly driven by the completion of major manufacturing campaigns for PEMGARDA and the next-generation candidate, VYD2311.
• Invivyd is targeting profitability by the end of the first half of 2025, a goal supported by anticipated continued revenue growth, disciplined expense management, and potential access to additional non-dilutive capital from a recently secured $30 million loan facility.
• Advancement of VYD2311, engineered for improved potency and more patient-friendly administration routes (IM/SC), and the initiation of new discovery programs (RSV, Measles) signal the company's commitment to pipeline expansion and long-term growth beyond the initial COVID-19 market.

Setting the Scene: A Biopharma Built for Evolution

Invivyd, Inc. is a biopharmaceutical company with a clear mission: to deliver protection from serious viral infectious diseases. Founded in June 2020, the company was born out of the urgent need to address the challenges posed by SARS-CoV-2, a virus characterized by its rapid evolution and disproportionate impact on vulnerable populations. From its inception, Invivyd recognized that effectively combating such a dynamic threat would require a novel approach, one focused on the rapid and serial development of monoclonal antibodies (mAbs) capable of keeping pace with viral mutations.

The company's journey began with strategic partnerships, notably with Adimab, to access foundational antibody discovery and optimization technologies. This early reliance on third parties gradually evolved as Invivyd built its own internal capabilities, culminating in the Adimab Platform Transfer Agreement in 2022, which granted the company rights to practice certain elements of Adimab's platform technology in-house. This blend of external collaboration and internal expertise forms the bedrock of Invivyd's operational model.

Invivyd operates within a competitive landscape dominated by larger, diversified pharmaceutical companies with established platforms and global reach. Competitors like Regeneron (REGN), Pfizer (PFE), Moderna (MRNA), and Gilead Sciences (GILD) offer a range of products, including antibody therapies, antivirals, and vaccines, targeting infectious diseases. While these companies command significant market share and possess substantial financial resources (e.g., REGN with ~10-15% COVID antibody share and 30-35% net margins, PFE with 20-25% COVID market share and 15-20% net margins), Invivyd has strategically positioned itself by focusing on a niche market initially – the immunocompromised population highly vulnerable to COVID-19 – and by developing a differentiated technological approach designed for speed and adaptability.

The INVYMAB Platform: Engineered for a Moving Target

Central to Invivyd's strategy and competitive positioning is its proprietary INVYMAB platform. This technology is specifically designed to address the challenge of viral evolution, particularly for targets like the SARS-CoV-2 spike protein. Unlike traditional antibody development approaches that may yield molecules quickly susceptible to new variants, INVYMAB focuses on identifying and engineering antibodies that target conserved epitopes – areas on the virus that are essential for its function and less likely to mutate significantly without compromising viral fitness.

The tangible benefits of this technology are crucial to Invivyd's value proposition:

• Enhanced Resistance to Evasion: By targeting conserved sites, Invivyd aims to develop mAbs that maintain activity against a broader range of existing and emerging variants. The company's analysis indicates polymorphic stability in the pemivibart binding site since the Omicron shift, supporting its continued activity against dominant variants like XEC and LP.8.1.
• Improved Potency and Product Profile: The platform enables the optimization of antibodies for increased potency. VYD2311, the next-generation candidate, was engineered for higher in vitro neutralization potency against prominent variants tested, potentially allowing for lower doses.
• Potential for Patient-Friendly Administration: Higher potency can translate into lower required doses, which in turn opens the door for more convenient routes of administration, such as intramuscular (IM) or subcutaneous (SC) injection, compared to intravenous (IV) infusion. VYD2311's Phase 1 trial is specifically exploring IM and SC dosing. This could significantly reduce administration costs (potentially 20% lower for IM) and improve patient accessibility compared to IV-only options.
• Accelerated and Capital-Efficient Development: The platform, combined with leveraging prior clinical data (e.g., from adintrevimab and pemivibart) and regulatory pathways like EUA and immunobridging, is intended to create streamlined development pathways. This aims to reduce clinical development time and costs, enhancing capital efficiency compared to traditional drug development, which is critical for a smaller company competing with larger players like REGN and PFE.

Invivyd's R&D initiatives are focused on operationalizing this platform. Beyond optimizing COVID-19 candidates like VYD2311, the company has initiated discovery programs for RSV and Measles mAbs. These programs aim to apply the same principles of targeting dynamic viral targets with engineered antibodies to address other high unmet needs, further validating the platform's potential beyond SARS-CoV-2. The goal is to generate potential best-in-class candidates in these new areas, adding optionality and setting the stage for long-term growth.

The "so what" for investors is that this technological differentiation forms a core competitive moat. While larger competitors may have scale and established markets, Invivyd's platform is designed to be more agile and potentially more effective at generating durable antibody solutions for rapidly evolving viruses. This could translate into sustained market relevance, potentially higher average selling prices (ASPs) due to differentiated performance, and a more efficient R&D spend over time, supporting the company's goal of translating medical value into shareholder value.

PEMGARDA: The First Step in Commercialization

The culmination of Invivyd's initial development efforts arrived on March 22, 2024, with the FDA's Emergency Use Authorization (EUA) for PEMGARDA (pemivibart) for PrEP of COVID-19 in certain immunocompromised individuals. This authorization marked a pivotal moment, enabling the company's transition from a purely R&D focus to commercialization and allowing it to begin generating product revenue.

The commercial launch of PEMGARDA commenced in April 2024. In the first quarter of 2025, the company reported $11.304 million in product revenue, net, a significant increase from $0 in the same period of 2024, directly reflecting sales following the launch. The cost of product revenue in Q1 2025 was $0.834 million. It's important to note that a substantial portion of PEMGARDA manufacturing costs incurred prior to EUA were expensed as R&D; had these been capitalized, reported margins would have been significantly higher, approaching 80%.

The early launch phase has not been without challenges. The company experienced an "unusual commercial headwind" in Q3 and Q4 2024, stemming from contested third-party virology data regarding PEMGARDA's activity against certain variants (specifically KP.3.1.1) that was disseminated by the FDA. This created confusion among healthcare providers (HCPs) and patients, damaging the utilization opportunity. Invivyd has actively worked to counter this, providing robust neutralization data generated through its own industrial virology effort and refining its messaging.

In Q1 2025, the company undertook a strategic transition, internalizing its commercial organization from a contracted sales force to an in-house team. While this shift contributed to a dip in Q1 revenue compared to Q4 2024, management reports positive momentum and early signs of acceleration in Q2 2025, including achieving its biggest ever commercial day and week. This is viewed as a hallmark of ongoing growth as the new team drives broader adoption.

Operational efforts are focused on increasing awareness and access. The company is re-educating HCPs on the value of mAbs for immunocompromised patients, addressing skepticism, and emphasizing the need for protection beyond vaccination alone. Efforts include increasing sites of care (infusion centers), developing a digital presence, partnering with patient communities, and building out logistical support. PEMGARDA has also been included in key guidelines, such as the IDSA recommendations (August 2024) and the NCCN Clinical Practice Guidelines in Oncology for B-Cell Lymphomas (May 2025), which is crucial for driving adoption within relevant physician specialties (e.g., hematology, oncology, transplant).

Management emphasizes that the target market of moderately to severely immunocompromised individuals in the U.S. (~500,000 people) represents a significant annual revenue opportunity measured in billions, suggesting that current sales levels are just scratching the surface of the potential market penetration.

Pipeline Advancement and Future Opportunities

Beyond PEMGARDA, Invivyd is rapidly advancing its pipeline, most notably with VYD2311, its next-generation COVID-19 mAb candidate. Nominated in January 2024, VYD2311 is designed to build upon the foundation of adintrevimab and pemivibart, specifically engineered for increased potency and the potential for more patient-friendly administration routes like IM and SC.

A Phase 1 clinical trial for VYD2311 commenced in Australia in September 2024, evaluating escalating doses, safety, tolerability, pharmacokinetics (PK), and immunogenicity across different routes of administration. Recruitment for this trial was completed in February 2025, with positive clinical data for safety and PK announced. Additional data readouts are expected throughout 2025. Management believes VYD2311 represents a "potential step change in accessibility and scalability for protection" compared to PEMGARDA and could also be developed as an efficient and effective treatment.

Invivyd recently sought to expand the existing PEMGARDA EUA to include the treatment of mild-to-moderate symptomatic COVID-19 in certain immunocompromised individuals. This request was declined by the FDA in February 2025. The FDA's reasoning centered on the immunobridging analysis, concluding they were unable to reasonably conclude that the known and potential benefits of pemivibart in treatment outweighed the known and potential risks. Invivyd has publicly shared its perspective on this decision, highlighting the "peculiar and deeply unfortunate consequence" for patients in need and noting that their analysis of pemivibart's activity over a 5-day period compares favorably to existing 5-day treatment regimens that confer zero antiviral activity after completion. They also noted the inherent variability in neutralization assays and the challenge of comparing a new antibody to predicate antibodies when the alternative for patients is often "nothing at all." Crucially, Invivyd believes that data from VYD2311, which provides significantly higher sVNA titers in bridging analysis compared to adintrevimab and can approach or exceed titers seen with historical leading mAbs like Regen-Cov, addresses the majority of the FDA's concerns regarding the pemivibart treatment application. The company plans to re-engage with the new FDA leadership to discuss both pemivibart and VYD2311 for potential expedited pathways.

Looking further ahead, Invivyd has initiated discovery programs beyond SARS-CoV-2, targeting Respiratory Syncytial Virus (RSV) and Measles. The RSV program aims to develop a potential best-in-class mAb for a market with established competitors (Beyfortus, Pavilizumab, Clesrovimab). The Measles program was initiated in response to inquiries from HCPs facing outbreaks with no approved treatment or post-exposure prophylaxis options. These programs leverage the core INVYMAB platform and are part of the company's strategy to apply its serial mAb development approach to other high-need viral diseases, adding long-term growth optionality.

Financial Health and Path to Profitability

Invivyd has incurred significant operating losses and negative cash flows since its inception, accumulating a deficit of $918.3 million as of March 31, 2025. The company's financial statements indicate substantial doubt about its ability to continue as a going concern based on current operating plans and excluding future revenues or external financing, as existing cash is not sufficient beyond one year from the May 15, 2025 filing date.

However, the company is actively working to improve its financial trajectory. Operating expenses have seen significant reductions, decreasing from $32.3 million in Q4 2024 to $27.4 million in Q1 2025, a 15% quarter-over-quarter reduction following a more than 50% decrease from Q3 to Q4 2024. This reduction is largely attributable to the completion of major manufacturing campaigns for PEMGARDA and VYD2311. Management anticipates operating expenses will continue to decrease in Q2 2025 as there are no plans for significant further manufacturing expense in the near term.

Cash and cash equivalents stood at $48.078 million as of March 31, 2025, down from $69.349 million at December 31, 2024.

Net cash used in operating activities was $21.129 million for the three months ended March 31, 2025, a notable improvement from $50.214 million used in the same period in 2024.

To support its operations and growth strategy, Invivyd requires additional funding. Historically, this has come from equity financing (preferred stock, IPO, ATM sales including $39.3 million net proceeds in February 2024). Moving forward, product sales from PEMGARDA are a critical funding source. Subsequent to the quarter, on April 18, 2025, the company secured a senior secured term loan facility of up to $30 million with Silicon Valley Bank. This facility provides potential access to non-dilutive capital in tranches, contingent upon achieving certain financial covenants and net product revenue milestones.

Despite the historical losses and going concern doubt, management is targeting profitability by the end of the first half of 2025. This goal is based on the expectation of continued revenue growth from PEMGARDA sales, coupled with the significant reduction in operating expenses, particularly R&D manufacturing costs. The company views this target as "audacious by design" but achievable through disciplined execution.

Contractual obligations as of March 31, 2025, include significant purchase commitments to WuXi Biologics (WXXWY) for commercial manufacturing: $27.4 million for drug substance/product and $6.3 million for material procurement, both expected to be paid in 2025. These commitments reflect the investment made to ensure product supply for the commercial launch.

Risks and Challenges

While Invivyd's strategy and recent progress are encouraging, significant risks and challenges remain. The most immediate is the substantial doubt about the company's ability to continue as a going concern, highlighting the critical need for continued revenue growth and/or successful fundraising. The ability to obtain additional funding through equity, debt, or collaborations is not assured and may not be on favorable terms, potentially forcing delays, reductions, or termination of programs.

Regulatory risks are also prominent. The PEMGARDA EUA is temporary and contingent on the public health emergency declaration and variant susceptibility. There is no guarantee it will be maintained or converted to full approval. Obtaining future authorizations or approvals for PEMGARDA (e.g., for treatment) or VYD2311 is subject to FDA review and may require additional clinical data. Changes in regulatory guidance or requirements could impact development pathways.

Commercial success is not guaranteed. Market acceptance of PEMGARDA, particularly in the face of competition from vaccines and small molecule antivirals (Paxlovid, Veklury), depends on factors like HCP and patient awareness, reimbursement access, and perceived value. The prior headwind related to virology data underscores the sensitivity of the market to information regarding variant susceptibility.

Financial risks include potential failure to meet the profitability target, higher-than-expected expenses, or lower-than-anticipated revenue. The new loan facility introduces financial covenants that must be met, and failure to comply could lead to default and acceleration of obligations, potentially impacting assets (excluding intellectual property). The ability to draw down future tranches is contingent on meeting specific financial and revenue milestones. Restrictions imposed by the loan covenants could also limit operational flexibility.

Dependence on third parties for manufacturing, clinical trials, and other services introduces execution risk. Maintaining compliance with Nasdaq listing standards, specifically the minimum bid price requirement, is also a current challenge.

Conclusion

Invivyd is at a critical juncture, actively transitioning from a research-focused entity to a commercial biopharmaceutical company. Its core investment thesis is built on the premise that a proprietary technology platform enabling rapid, serial development of monoclonal antibodies is essential to address the evolving threat of viral infectious diseases, starting with COVID-19. The launch of PEMGARDA represents the first tangible outcome of this strategy, generating initial revenue and providing a foundation for commercial infrastructure.

Despite facing commercial headwinds and operating within a challenging financial environment characterized by historical losses and going concern doubt, Invivyd has demonstrated progress in controlling expenses and is targeting profitability by the end of the first half of 2025. This ambitious goal hinges on the continued growth of PEMGARDA sales and disciplined operational management, supported by potential access to non-dilutive capital. The advancement of VYD2311 and the initiation of new discovery programs signal a commitment to long-term growth and pipeline diversification, leveraging the technological edge to address broader unmet medical needs.

For investors, the story of Invivyd is one of potential high reward balanced by significant risk. The success of the PEMGARDA launch, the ability to achieve and sustain profitability, the successful development and regulatory authorization of next-generation candidates like VYD2311, and the effective management of liquidity and funding needs will be key determinants of future value creation. The company's ability to execute on its strategy of delivering high-value, adaptable antibody therapies to vulnerable populations, while navigating competitive pressures and regulatory complexities, will define its trajectory in the dynamic landscape of infectious disease prevention and treatment.