Indivior plc ((INDV)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Indivior PLC’s recent earnings call conveyed a generally optimistic sentiment, underscored by robust performance and growth in its flagship product, SUBLOCADE. The company has raised its financial guidance, reflecting confidence in its strategic initiatives, despite some noted challenges in market expansion and restructuring costs.
SUBLOCADE Strong Performance
SUBLOCADE, Indivior’s leading product, demonstrated impressive growth with a 15% increase in net revenue year-over-year and a 5% sequential rise. This success is attributed to enhanced commercial execution, resulting in an 8% growth in dispense units compared to the previous year.
Raised Full Year 2025 Guidance
Indivior has adjusted its 2025 financial outlook upwards, anticipating a rise in total net revenue, primarily driven by a projected 10% growth in SUBLOCADE at the midpoint. The company also expects a 15% increase in adjusted EBITDA compared to 2024.
Significant Cost Reduction Initiatives
In a strategic move to streamline operations, Indivior plans to save at least $150 million annually in operating expenses starting in 2026. This includes a significant 32% reduction in headcount, aimed at enhancing operational efficiency.
Direct-to-Consumer Campaign Launch
To bolster patient engagement and awareness, Indivior launched a new direct-to-consumer campaign titled ‘Move Forward in Recovery’ on October 1. This initiative is expected to further support SUBLOCADE’s market presence.
Stable SUBOXONE Film Pricing
The stability in SUBOXONE Film pricing in the U.S. has been a positive contributor to Indivior’s overall performance, providing a reliable revenue stream.
Organizational Restructuring Costs
The company has incurred $65 million in non-GAAP charges related to restructuring activities, including severance and inventory write-offs, as part of its broader cost-saving strategy.
Challenges with OPVEE
Indivior has ceased sales and marketing efforts for OPVEE, though it remains committed to fulfilling all contractual and regulatory obligations associated with the product.
Limited Growth in LAI Category
The long-acting injectable (LAI) category, where SUBLOCADE competes, continues to face challenges with only 8% market penetration, highlighting the difficulty in significantly expanding market share.
Forward-Looking Guidance
Indivior’s forward-looking guidance for 2025 is optimistic, with expectations of surpassing 2024 revenue levels. The company projects a 10% growth in SUBLOCADE and a stable pricing environment for SUBOXONE Film. Additionally, a 15% growth in adjusted EBITDA is anticipated, supported by a strategic cost-reduction plan aiming for a $150 million annual saving by 2026.
In summary, Indivior PLC’s earnings call reflected a positive outlook with strong growth in SUBLOCADE and raised financial guidance. While challenges remain in market expansion and restructuring costs, the company’s strategic initiatives and cost-saving measures position it well for future success.