Indivior plc ((GB:INDV)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Indivior plc’s recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. While the company reported strong growth in its SUBLOCADE product and successful cost reductions, these positive outcomes were tempered by expected declines in SUBOXONE Film revenue, funding issues in the criminal justice system (CGS) channel, and slower-than-anticipated adoption of OPVEE. 2025 is anticipated to be a transition year, marked by a decline in total net revenue.
SUBLOCADE Net Revenue Growth
SUBLOCADE emerged as a standout performer, concluding the year with a 20% increase in net revenue, totaling $756 million, slightly surpassing the guidance range. This growth is indicative of its strong market position in the opioid use disorder treatment landscape.
Cost Reduction Initiatives
Indivior successfully implemented cost-cutting measures, achieving over $100 million in annual reductions. This initiative has resulted in more than $50 million in savings directly contributing to the company’s bottom line, enhancing its financial resilience.
High Share of New Starts
SUBLOCADE maintains an impressive 71% share of new starts in the long-acting injectable market for opioid use disorder, underscoring its leading position and strong market acceptance among prescribers and patients.
Settlement of Legacy Litigation
The company has resolved certain legacy litigation issues, reducing enterprise risk and enhancing its financial flexibility. This strategic move allows Indivior to focus more on its core business operations and future growth.
SUBOXONE Film Revenue Decline
Indivior faces significant challenges with its SUBOXONE Film, as net revenue is expected to decline by approximately 55% in 2025. This decline is attributed to intensified competitive pricing and the potential entry of new generic competitors.
Challenges in Criminal Justice System (CGS)
Funding gaps in the CGS channel are constraining SUBLOCADE’s performance, with a projected net revenue decline of 30-35% in 2025. Addressing these funding issues is critical for maintaining market momentum in this sector.
OPVEE Adoption Challenges
The adoption of OPVEE has been slower than expected, hindered by concerns over precipitate withdrawal and a lack of real-world evidence. These factors are impacting state-level adoption and present a challenge to Indivior’s expansion strategies.
Transition Year Ahead
The company forecasts 2025 as a transition year, with total net revenue expected to decline by 17% at the midpoint of guidance. This decrease is primarily due to the expected decline in SUBOXONE Film revenue and the discontinuation of PERSERIS.
Forward-Looking Guidance
Looking ahead, Indivior expects total net revenue to range between $955 million and $1.25 billion in 2025, reflecting a 17% decline from the previous year. Despite these challenges, the company plans significant commercial investments to strengthen SUBLOCADE’s market position and aims for long-term revenue exceeding $1.5 billion. Operating expenses are anticipated to decrease by over $50 million, with adjusted operating profit projected between $185 million and $225 million.
In conclusion, Indivior plc’s earnings call outlined a year of both accomplishments and hurdles. The company is navigating a transition period with expected revenue declines and strategic shifts while maintaining a focus on its core treatments for opioid use disorder. As Indivior aims to stabilize its financial performance in 2025, it is setting the stage for renewed growth in the years to follow.
