Indivior PLC Q3 2024 Performance Update

Indivior PLC (INDV.L) showed a strong performance in Q3 2024, according to CEO Mark Crossley. Total net revenue increased by 13% year-over-year to $307 million, with SUBLOCADE's revenue reaching $191 million (up 14%). Adjusted operating profit surged 62% to $97 million.

Despite competitive pressures and funding variability, Indivior remains focused on expanding market share and progressing with pipeline developments, including expected label updates for SUBLOCADE.

Key Takeaways

• Total net revenue reached $307 million, a 13% increase YoY.
• SUBLOCADE's revenue rose 14% to $191 million.
• Adjusted operating profit increased by 62% to $97 million.
• Strong cash reserves of $344 million.
• Aiming for over $1.5 billion in peak revenue with more than 270,000 SUBLOCADE patients.
• Settled preliminary $40 million for legacy antitrust cases.
• SUBLOCADE holds a 72% market share of new patients.

Company Outlook

• Goal to exceed 270,000 SUBLOCADE patients.
• Focus on cost reductions with projected savings of $10 to $20 million in 2025.
• Revised revenue guidance for 2024 set at $1.125 billion to $1.165 billion.
• Expecting SUBLOCADE revenues between $725 million and $745 million this year.
• SG&A guidance narrowed to $555 million to $560 million, with R&D expenses from $115 million to $120 million.

Bearish Highlights

• SUBLOCADE dispenses grew just 2% quarter-over-quarter due to competition and funding challenges.
• Adjusted gross margin decreased to 82% due to inflation and unfavorable pricing.
• Justice system channel saw a significant decline in dispenses.

Bullish Highlights

• Indivior is optimistic about capturing a larger market share as long-acting injectables currently represent only 7% of the market.
• Targeted investments in marketing and education to boost SUBLOCADE awareness.
• Ongoing Phase 2 studies for INDV-6001 and INDV-2000 proceeding with key dates approaching.

Misses

• SUBLOCADE expenses rose by 19% due to trade destocking.
• While adjusted SG&A decreased, R&D expenses increased by 22% due to pipeline advancements.

Q&A Highlights

• CEO discussed upcoming label updates for SUBLOCADE expected on February 7, 2025.
• Focus on raising awareness among healthcare providers and patients about SUBLOCADE's benefits.
• Acknowledged pricing sensitivity in some government sectors, but not seen as a long-term concern.

Conclusion

Indivior PLC remains committed to its growth strategy, leveraging a strong financial position to advance SUBLOCADE and other pipeline products while navigating current market dynamics.