Headline: Indivior PLC Reports Strong Q3 Revenue Growth, Sets Sights on Expansion

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Headline: Indivior PLC Reports Strong Q3 Revenue Growth, Sets Sights on Expansion

Indivior PLC (INDV.L) CEO Mark Crossley announced during the company's earnings call that it delivered strong performance in the third quarter of 2024. The pharmaceutical company reported a 13% increase in total net revenue, reaching $307 million, with SUBLOCADE revenue rising 14% year-on-year to $191 million. Adjusted operating profit saw a significant 62% increase, reaching $97 million. Despite facing competitive pressures and financial variability, the company remains committed to expanding market share and continues to make progress in product development, including anticipated label updates for SUBLOCADE.

Key Highlights

  • Indivior PLC's total net revenue in Q3 grew by 13% year-on-year, reaching $307 million.
  • SUBLOCADE net revenue increased by 14%, reaching $191 million.
  • Adjusted operating profit rose by 62%, amounting to $97 million.
  • Cash reserves remained strong at $344 million.
  • The company targets peak revenue exceeding $1.5 billion with more than 270,000 SUBLOCADE patients.
  • Indivior PLC reached a $40 million preliminary agreement for former antitrust cases.
  • SUBLOCADE retains a 72% share of new patients entering the market.

Company Outlook

  • Indivior PLC aims to reach over 270,000 SUBLOCADE patients.
  • The company focuses on cost reductions to streamline operations, projecting savings of $10 million to $20 million by 2025.
  • Revenue guidance for 2024 was revised to be between $1.125 billion and $1.165 billion.
  • SUBLOCADE revenue is expected to be between $725 million and $745 million for the full year.
  • SG&A guidance narrowed to $555 million to $560 million, with R&D expenses anticipated to be between $115 million and $120 million.

Challenges

  • SUBLOCADE experienced only a 2% quarter-on-quarter distribution growth due to competition and financial variability.
  • Adjusted gross margin decreased to 82% due to cost inflation and a lack of favorable pricing.
  • The justice system channel saw a high single-digit decline in distributions.

Positive Developments

  • Indivior PLC is optimistic about capturing a larger market share, as long-acting injections (LAIs) currently represent only 7% of the market.
  • The company invested in marketing and education to increase awareness of SUBLOCADE.
  • Ongoing Phase 2 trials for INDA-6001 and INDA-2000 are progressing, with a PDUFA date set for SUBLOCADE label updates.

Shortcomings

  • Expenses for SUBLOCADE rose by 19% to $158,500 due to commercial stock reduction.
  • Adjusted SG&A expenses decreased, but this was offset by a 22% increase in R&D expenses due to product development progress.

Q&A Highlights

  • CEO Mark Crossley discussed the expected SUBLOCADE label updates on February 7, 2025.
  • The company is working to raise awareness of SUBLOCADE's benefits among healthcare providers and patients.
  • Crossley acknowledged price sensitivity in certain government accounts but does not view it as a long-term concern.
  • Ongoing efforts are in place to gather real-world evidence to support OPVEE's market traction.
  • A sales force is actively engaging with 14,000 physicians to boost SUBLOCADE awareness and adoption.

Indivior PLC continues to focus on its growth strategy, leveraging its strong financial position to invest in the expansion of SUBLOCADE and product development processes. The company's proactive approach to market dynamics and operational efficiency positions it to maintain its trajectory in the competitive pharmaceutical sector.