Indivior (INDV) Risk Analysis

The Group's capital expenditures for the years ended 2023, 2022, and 2021 were $8 million, $5 million, and $4 million, respectively. These capital expenditures were primarily for equipment used in the manufacture of our products. The Group funded these expenditures from its existing cash balances. Intangible asset purchases for the years ended 2023, 2022, and 2021 were $171 million, $1 million, and $30 million, respectively, and were funded from existing cash balances. The 2023 intangible asset purchases include $126 million related to the in-process research and development value for OPVEE (nalmefene) nasal spray recognized through the Opiant acquisition. Refer to

Indivior Finance S.àr.l., Indivior SMTM LLC, RBP Global Holdings Limited, which are subsidiaries of Indivior PLC, entered into a Credit Agreement, originally dated as of December 19, 2014, as amended and restated from time to time with Morgan Stanley Senior Funding, Inc., Morgan Stanley Bank, N.A., and Deutsche Bank AG New York Branch as lenders (the "Credit Agreement"). The Credit Agreement provides for a $250 million term loan. The obligations of the borrowers are secured by substantially all the assets of the borrowers, including a pledge of all of the equity interests of the borrowers. In April 2022, the Group completed an amendment to its existing term loan which provides the Group greater flexibility in the use of cash being generated and changes the variable interest rate base from USD LIBOR to USD SOFR plus a credit spread adjustment of 26 basis points. As part of the modification, the Group incurred $1 million of issuance costs, banking fees and legal fees which were capitalized, netted against the total amount borrowed and are amortized over the maturity period using the effective interest method. The Term Loan has a 1% annual amortization feature with a quarterly payment of $0.625 million, with the remaining principal amount outstanding due on June 30, 2026. Nominal interest margin is calculated as USD SOFR plus 0.26%, subject to a floor of 0.75%, plus a credit spread adjustment of 5.25%. The average interest rate during 2023 and 2022 was 10.54% and 7.22%, respectively. The Credit Agreement includes the following: an accordion feature such that $75 million of additional incremental loans are permitted plus additional further incremental loans up to amounts based on various leverage ratios and subject to various conditions. a minimum liquidity covenant requiring that the borrowers and their restricted subsidiaries not allow liquidity to be less than the greater of $100 million or 50% of the aggregate amount of loans outstanding on the last day of each fiscal quarter. customary events of default including non-payment of principal, interest, fees or any other amounts when due, breach of certain covenants or representations, cross event of default and cross acceleration, insolvency and insolvency events, material monetary judgments, pension defaults, material invalidity of guarantees or security, ranking and change of control. In the event of an event of default, the administrative agent under the Credit Agreement may terminate the debt facilities and/or demand repayment in full of any borrowings outstanding under the debt facilities, together with accrued interest thereon and all fees and other accrued obligations of the borrowers.

Net cash used in investing activities was $98 million in 2023, a decrease of $125 million, compared to net cash used of $223 million in 2022, reflecting a $124 million outflow for the Opiant acquisition, net of cash assumed. In the prior year period, the outflow from investing activities primarily reflected the net investment in a portfolio of investment grade debt and treasury securities. Net cash used in investing activities was $223 million in 2022, an increase of $209 million, compared to net cash used of $14 million in 2021. This reflects the net investment in a portfolio of investment grade debt and treasury securities. See "

Acquisition of Opiant". Additionally, 2023 intangible assets purchases include $21 million for the acquisition of INDV-2000 (oral Orexin-1 receptor antagonist) from C4X Discovery and $15 million to secure the global rights to develop, manufacture, and commercialize Alar Pharmaceuticals Inc.'s ("Alar") portfolio of buprenorphine-based ultra long-acting injectables, including a lead asset (INDV-6001) which is potentially the first three-month long-acting injectable for OUD. In 2021, the intangible assets purchase of $30 million related to a payment made to Aelis Farma for an exclusive option and license agreement to develop its leading compound (AEF0117) targeting cannabis use disorders. Capital ExpendituresFor the years endedDecember 31,(in millions)202320222021Purchases of property, plant and equipment(8)(5)(4)Purchases of intangible assets(171)(1)(30)Total $(179)$(6)$(34)

Business Combinations."),after which time we expect capital expenditures to revert to levels more in line with Indivior's history. The Group expects to continue investing in development stage assets from time to time but presently has no commitment to do so.

In connection with the acquisition of Opiant, a subsidiary of Indivior issued Contingent Value Rights ("CVRs") to the stockholders of Opiant. Each CVR represents the obligation of Indivior Inc. to make cash payments upon achievement of certain worldwide net sales milestones during the period from October 1, 2023 to September 30, 2030. We estimate total potential payments to be up to an additional $68 million over a period of up to 7 years from the date of the first commercial sales of a new Opiant product. Refer to