The Brisbane, Calif.-based company said it expects to give initial buyers a 30-day option to buy up to an additional $17.5 million in notes.
The terms of the convertible senior notes, which are due 2025, are slated to be announced when the offering is priced, Innoviva said.
INVA shares were trading at $13.33 apiece in mid-afternoon activity today, down -2.8%.
In April, Innoviva said that it plans to review its costs including the salaries of its top executive and board, bowing to pressure from hedge fund and activist investor Sarissa Capital Management.
Earlier this year, the fund demanded that Innoviva cut CEO Michael Aguiar’s pay to less than $500,000 a year; Aguiar’s total compensation in 2015 was $3.56 million, according to a regulatory filing.
Sarissa, which is run by Alex Denner, a protege of billionaire investor Carl Icahn, owns 2.7% of Innoviva. In March the hedge fund nominated 3 candidates for the Innoviva board; GlaxoSmithKline has pledged to back Innoviva’s candidates at the company’s shareholders meeting.