Indivior PLC(US:INDV)2024-04-25 16:42Financial Performance - Q1 2024 total net revenue increased by 12% to $284 million, compared to $253 million in Q1 2023[6] - SUBLOCADE net revenue for Q1 2024 was $179 million, reflecting a 36% increase year-over-year[15] - Adjusted operating profit for Q1 2024 decreased by 1% to $70 million, down from $71 million in Q1 2023[21] - Reported net income for Q1 2024 was $47 million, with adjusted net income at $51 million, a 9% decrease from $56 million in Q1 2023[23] - U.S. net revenue increased by 15% in Q1 2024 to $241 million, driven by strong SUBLOCADE volume growth[14] - Q1 2024 gross margin was reported at 84%, down from 85% in Q1 2023, with adjusted gross margin at 85%[16] - Gross profit for Q1 2024 reached $238 million, up from $214 million in Q1 2023, reflecting a gross margin improvement[40] - Operating profit increased to $65 million in Q1 2024, compared to $57 million in Q1 2023, representing an increase of 14.0%[40] - Net income for Q1 2024 was $47 million, a rise of 6.8% from $44 million in Q1 2023[41] - Basic earnings per share for Q1 2024 were $0.35, compared to $0.32 in Q1 2023, indicating a 9.4% increase[40] Cash and Investments - Cash and investments totaled $356 million at the end of Q1 2024, down from $451 million at the end of FY 2023[24] - Cash used in operations in Q1 2024 was $25 million, compared to $16 million in Q1 2023, primarily due to litigation settlement payments[26] - The Group's cash and cash equivalents decreased to $248 million at the end of Q1 2024, down from $588 million at the end of Q1 2023[46] - The total investments decreased from $135 million as of December 31, 2023, to $108 million as of March 31, 2024[71] - Net cash outflow from investing activities improved to $25 million in Q1 2024, compared to a net outflow of $(127) million in Q1 2023[46] Guidance and Future Plans - The company reconfirmed its FY 2024 guidance, expecting SUBLOCADE net revenue between $820 million and $880 million[1] - The company plans to seek shareholder approval in May 2024 for a primary listing in the U.S.[10] - Indivior plans to seek shareholder approval in May 2024 for a primary listing in the U.S. while maintaining a secondary listing in the U.K.[36] - The company is focused on expanding its product pipeline to address alcohol use disorder and cannabis use disorder[34] Assets and Liabilities - Total assets as of March 31, 2024, were $1,453 million, down from $1,948 million as of December 31, 2023[43] - Current liabilities decreased to $861 million from $1,306 million at the end of 2023, showing a significant reduction[43] - The Group's term loan borrowings totaled $238 million as of March 31, 2024, slightly down from $239 million as of December 31, 2023[75] - The Group's total liabilities related to the DOJ resolution agreement amounted to $345 million as of March 31, 2024[83] Research and Development - Research and development expenses for Q1 2024 were $28 million, slightly higher than $27 million in Q1 2023, indicating continued investment in innovation[60] Litigation and Settlements - Indivior Inc. reached a settlement with 41 states and the District of Columbia for $103 million in June 2023, and a $30 million settlement with end payors was finalized in December 2023[95] - The company has been named as a defendant in over 400 civil lawsuits related to opioid marketing practices, with most cases consolidated in a federal multi-district litigation[95] - Indivior Inc. has ongoing litigation regarding claims of false or misleading statements under the U.K. Financial Services and Markets Act 2000, with no estimate of possible loss available at this time[98] - A jury trial regarding fraud claims against Indivior Inc. is scheduled for July 15, 2024, with preliminary findings indicating that claims are not barred by the statute of limitations[93] - Indivior Inc. intends to vigorously defend itself against various ongoing litigations, believing it has meritorious defenses[95] Acquisitions - The Group acquired 100% of Opiant for an upfront cash consideration of $146 million, with potential additional payments of up to $8.00 per share based on sales milestones[108] - The acquisition of Opiant added OPVEE, an opioid overdose treatment, to the Group's portfolio, which was FDA approved in May 2023 and launched in October 2023[108] - The cash outflow for the Opiant acquisition was $124 million in Q1 2023, net of cash acquired, and included $10 million of assumed debt[110] - The Group acquired an aseptic manufacturing facility for $5 million in cash on November 1, 2023, to support the production of SUBLOCADE and PERSERIS[112] - Committed capital spend for the aseptic manufacturing facility is approximately $7 million as of March 31, 2024[114] Share Repurchase Program - The Group initiated a share repurchase program with a total purchase price of up to $100 million, repurchasing 1,988,000 ordinary shares at $0.50 per share, totaling $1 million[106] - The total cost of share repurchases during the period was $36 million, an increase from $33 million in FY 2023, with a net repurchase amount of $9 million recorded as a financial liability[107] - The Group's share repurchase program concluded in February 2023, having repurchased up to $100 million worth of shares[105]