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Indivior PLC (INDV)
NASDAQ:INDV
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Indivior
(NASDAQ:INDV)
Rating:69Neutral
Price Target:
$15.00
▲(5.78%Upside)
Positive Factors
Earnings Beat
1Q25 group results beat expectations, with group revenues declining a more modest 6% compared to consensus expectations of a 14% decline.
Financial Performance
The company achieved significant opex savings, contributing to the group sales beat expectations by 9%, gross margin by 10%, and adj. EBIT by over 40%.
Market Position
Sublocade retains a dominant market share with approximately 80% share within the cohort for buprenorphine-based LAI and 60% share of LAI-naive patients.
Negative Factors
Generic Competition
A 5th generic from Teva has not yet reached the market, indicating increasing generic pricing pressure.
Market Challenges
CJS funding gaps remain a key headwind, affecting Sublocade sales and contributing to a 38% decline in the CJS market.
Profit Warnings
Analyst recognizes the need to rebuild market confidence after two profit warnings in FY24, with a target price reduced to 1,110p from 1,400p.
Indivior (INDV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
£1.73B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth4.09%
EPS Growth-640.24%
CountryUS
Employees1,030
SectorHealthcare
Sector Strength55
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.41
Shares Outstanding124,769,530
10 Day Avg. Volume1,313,306
30 Day Avg. Volume1,004,434
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)61.01
Price to Sales (P/S)0.00
P/FCF Ratio-311.15
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue0.56
Enterprise Value/Gross Profit2.84
Enterprise Value/Ebitda19.28
Forecast
1Y Price Target
£13.94Price Target Upside-1.68% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Indivior Business Overview & Revenue Model
Company DescriptionIndivior PLC, together with its subsidiaries, engages in the development, manufacture, and sale of buprenorphine-based prescription drugs for the treatment of opioid dependence and co-occurring disorders in the United States, the United Kingdom, and internationally. The company develops medicines to treat substance use disorders, serious mental illnesses, and opioid overdose. Its core marketed products include SUBLOCADE and SUBUTEX PRO buprenorphine extended-release monthly injections; SUBOXONE, a buprenorphine and naloxone sublingual film; SUBOXONE, a buprenorphine and naloxone sublingual tablet; and SUBUTEX, a buprenorphine sublingual tablet for the treatment of opioid use disorder. The company also offers OPVEE nasal spray for opioid overdose reversal; and PERSERIS extended-release injectable suspension for the treatment of schizophrenia in adults. In addition, it is developing INDV-2000, a selective orexin-1 receptor antagonist that completed phase 1 clinical trial for the treatment of opioid use disorder (OUD); INDV-1000, a selective GABAb positive allosteric modulator, which is in pre-clinical development phase for the treatment of alcohol use disorder in collaboration with ADDEX therapeutics; INDV-6001, a buprenorphine-based long-acting injectable for the treatment of OUD in collaboration with Alar Pharmaceuticals Inc.; and CT-102, a digital therapeutic for the treatment of OUD in collaboration with Click Therapeutics. Further, the company is developing INDV-5004, a drinabant injection to treat acute cannabinoid overdose. It has a strategic partnership with Aelis Farma to develop AEF0117, a synthetic CB1 specific signaling inhibitor that is in phase 2B clinical trial for the treatment of cannabis use disorder. The company was incorporated in 2014 and is headquartered in North Chesterfield, Virginia.
How the Company Makes MoneyIndivior makes money primarily through the sale of its pharmaceutical products designed for the treatment of addiction, with a significant portion of its revenue coming from its flagship product, Suboxone. The company generates revenue by selling its products to healthcare providers, pharmacies, and government health programs. Indivior also invests in research and development to create new treatments and improve existing ones, which can lead to additional revenue streams as these innovations reach the market. Strategic partnerships and collaborations with healthcare organizations and government bodies also contribute to its earnings, as they expand the company's reach and market penetration. Additionally, Indivior's global operations allow it to leverage diverse markets, further driving its revenue growth.
Indivior Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 50.05%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Negative
The earnings call reflects a challenging quarter for Indivior, with notable declines in revenue due to increased competition and funding challenges. Despite these issues, the company showed resilience through patient treatment growth and cost streamlining efforts. However, the lowlights outweigh the highlights, indicating significant negative trends.Q1-2025 Updates
Positive Updates
Patient Treatment Growth
The company treated approximately 170,700 patients in the U.S. over the past 12 months, marking a 14% increase year over year.
SUBLOCADE Market Share Stability
SUBLOCADE's new patient share averaged over 70% and has been stable for three quarters, indicating a strong market position.
Cost Streamlining and Profit Protection
Indivior made progress in streamlining its cost base, achieving gross savings of over $100 million for 2025, and reinvesting $50 million into SUBLOCADE and its pipeline.
Negative Updates
Revenue Decline
Total net revenue for the quarter declined by 6% year over year, driven by competition from generic film providers and the discontinuation of PERSERIS.
SUBLOCADE Revenue Decline
SUBLOCADE net revenue declined by 2% in the first quarter, primarily due to near-term justice system funding challenges.
Challenges in Criminal Justice System
Significant reduction in dispense volume from the criminal justice system channel due to budget issues, impacting SUBLOCADE's performance.
Company Guidance
During the Indivior PLC Q1 2025 earnings call, the company provided guidance indicating that its performance was aligned with expectations and consistent with their full-year 2025 outlook. Total net revenue for the first quarter was $266 million, representing a 6% decline year-over-year, primarily due to intensified competition and the discontinuation of PERSERIS. SUBLOCADE's net revenue also saw a modest 2% decline, attributed to funding challenges in the criminal justice system. Despite these challenges, SUBLOCADE's share among new patients remained stable, averaging over 70% in the quarter. Indivior anticipates improved SUBLOCADE net revenue in the second half of the year, driven by commercial investments and label updates. The company reported a 10% increase in non-GAAP adjusted operating profit, reflecting reduced expenses and gross savings of over $100 million expected in 2025. Indivior is reinvesting approximately $50 million of these savings into SUBLOCADE and its pipeline, while the remaining savings will bolster profits. The guidance for full-year 2025 remains on track, backed by stable patient dynamics and anticipated strategic improvements.Indivior Financial Statement Overview
Summary
Indivior demonstrates positive revenue growth and a strong gross profit margin, but profitability remains a major concern due to low net margins. The balance sheet reflects financial instability with negative equity, while cash flow improvements are overshadowed by historical cash flow volatility. The company faces significant challenges in achieving financial stability and sustainable profitability.Income Statement
Indivior's income statement shows a strong recovery and growth trend, with a significant increase in total revenue from $647M in 2020 to $1.17B in TTM. The company achieved a positive net income in TTM after a period of losses, indicating improved profitability. Gross profit margins have remained strong, and the net profit margin turned positive in TTM, reflecting effective cost management. However, the EBIT margin is relatively low, suggesting potential areas for operational efficiency improvements.75
Positive
Balance Sheet
The balance sheet reveals a negative stockholders' equity position in TTM, which is a significant weakness, as it suggests more liabilities than assets. Despite this, the company has managed its debt levels well, with a low total debt. The equity ratio is negative, reflecting the need for strengthening equity capital. However, the low debt-to-equity ratio indicates that the company is not heavily leveraged, which is a positive aspect.60
Neutral
Cash Flow
Cash flow analysis shows a significant improvement in operating cash flow, turning positive in TTM. Free cash flow has also grown substantially, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is robust, indicating efficient cash management. However, the fluctuation in free cash flow over the years points to potential volatility in cash generation.70
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.17B | 1.19B | 1.09B | 884.63M | 777.48M | 689.68M | Gross Profit |
| 919.37M | 957.00M | 907.00M | 715.75M | 639.87M | 573.49M | EBIT |
| 201.07M | 32.00M | -4.00M | 205.20M | 183.80M | 93.81M | EBITDA |
| 89.79M | 84.00M | 68.61M | -44.18M | 233.93M | -128.98M | Net Income Common Stockholders |
| 2.78M | 2.00M | 2.00M | -52.04M | 205.00M | -157.76M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 373.00M | 320.00M | 410.00M | 897.83M | 1.10B | 858.00M | Total Assets |
| 1.38B | 1.32B | 1.95B | 1.78B | 1.83B | 1.53B | Total Debt |
| 370.00M | 375.00M | 282.00M | 278.50M | 285.44M | 285.00M | Net Debt |
| -2.00M | 56.00M | -34.00M | -499.69M | -814.40M | -573.00M | Total Liabilities |
| 1.66B | 1.67B | 1.95B | 1.73B | 1.63B | 1.45B | Stockholders Equity |
| -286.00M | -348.00M | 67.90M | 51.28M | 202.60M | 82.00M |
| Cash Flow | Free Cash Flow | ||||
| 131.83M | 7.00M | -368.00M | -9.82M | 313.55M | -210.00M | Operating Cash Flow |
| 165.83M | 36.00M | -315.00M | -3.93M | 346.97M | -205.73M | Investing Cash Flow |
| 39.06M | 69.00M | -100.36M | -218.95M | -13.76M | -4.26M | Financing Cash Flow |
| -81.08M | -102.00M | -46.00M | -98.18M | -92.39M | -10.66M |
Indivior Technical Analysis
Positive
14.18
Price Trends
11.36
Positive
10.72
Positive
10.62
Positive
Market Momentum
0.78
Negative
70.55
Negative
90.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDV, the sentiment is Positive. The current price of 14.18 is above the 20-day moving average (MA) of 12.76, above the 50-day MA of 11.36, and above the 200-day MA of 10.62, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 70.55 is Negative, neither overbought nor oversold. The STOCH value of 90.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for INDV.
Indivior Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.22B | 9.37 | 19.90% | ― | 8.05% | -8.46% | |
71 Outperform | $1.79B | 29.00 | 6.32% | ― | 11.82% | ― | |
69 Neutral | £1.73B | ― | ― | 4.09% | -640.24% | ||
64 Neutral | $1.36B | ― | -5.19% | ― | 30.26% | -173.36% | |
59 Neutral | $1.12B | ― | -12.27% | ― | 3.08% | -247.82% | |
54 Neutral | $5.34B | 3.27 | -45.10% | 3.30% | 16.80% | 0.02% | |
53 Neutral | $1.51B | ― | -20.41% | ― | 0.45% | -125.61% |
* Healthcare Sector Average
Performance Comparison
INDV
Indivior
14.18
-1.68
-10.59%
PCRX
Pacira Pharmaceuticals
24.34
-3.85
-13.66%
SUPN
Supernus Pharmaceuticals
32.47
5.81
21.79%
ANIP
ANI Pharmaceuticals
64.29
3.55
5.84%
AMPH
Amphastar Pharmaceuticals
25.98
-14.07
-35.13%
EVO
Evotec AG
4.13
0.06
1.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.