Indivior PLC(INDV) - 2024 Q3 - Quarterly Report

Financial Performance - Q3 2024 total net revenue (NR) was $307 million, representing a 13% increase compared to Q3 2023[1] - YTD 2024 total NR reached $889 million, an 11% increase from YTD 2023[4] - SUBLOCADE Q3 2024 NR was $191 million, up 14% from Q3 2023, with YTD 2024 NR of $562 million, a 24% increase[1] - Adjusted operating profit for Q3 2024 was $97 million, a 62% increase from Q3 2023, while YTD 2024 adjusted operating profit was $245 million, up 21%[4] - FY 2024 net revenue guidance is set between $1,125 million and $1,165 million, with SUBLOCADE NR expected between $725 million and $745 million[6] - Net revenue for YTD 2024 was $889 million, up from $800 million in YTD 2023, reflecting a strong performance[25] - Q3 2024 net income on an adjusted basis was $72 million, compared to $49 million in Q3 2023[11] - Adjusted net income for YTD 2024 was $182 million, compared to $162 million for YTD 2023, indicating an increase of 12.3%[112] Cash and Investments - Cash and investments totaled $344 million as of September 30, 2024, down from $451 million in FY 2023, primarily due to litigation settlement payments and share repurchases[4] - Cash generated from operations in YTD 2024 was $94 million, a turnaround from cash used in operations of $2 million in YTD 2023[13] - Cash outflow from financing activities in YTD 2024 was $129 million, significantly higher than $25 million in YTD 2023, primarily due to share repurchases[13] - Cash and cash equivalents decreased from $316 million to $288 million, a decline of approximately 9%[28] Expenses and Profitability - YTD 2024 adjusted SG&A expense increased 7% to $421 million, while Q3 2024 adjusted SG&A expense decreased 11% to $133 million[11] - Q3 2024 operating profit was reported at $4 million, a significant improvement from a loss of $183 million in Q3 2023[11] - The effective tax rate for YTD 2024 was 23%, up from 21% in YTD 2023, influenced by an increase in the U.K. corporation tax rate[11] - The company reported a net loss for YTD 2024 of $57 million, a slight increase from a loss of $52 million in YTD 2023[112] Litigation and Provisions - A provision of $39 million was recorded for the preliminary agreement related to legacy antitrust litigation[3] - The provision for opioid litigation at September 30, 2024, is $78 million, reflecting the present value of a preliminary settlement expected to be paid over five years[62] - The Group has recorded a provision of $39 million for other antitrust matters, representing the net present value of agreed amounts to be paid in 2024 and 2025[62] - Indivior Inc. reached a settlement agreement for $85 million to resolve all remaining claims in the HCSC Consolidated Litigation[72] - The Group recorded a provision of $39 million related to the potential Humana/Centene Settlement, with negotiations ongoing for final terms[72] Assets and Liabilities - Total assets decreased from $1,948 million as of December 31, 2023, to $1,464 million as of September 30, 2024, representing a decline of approximately 25%[28] - Current assets fell from $1,263 million to $799 million, a decrease of about 37%[28] - Total liabilities decreased from $1,948 million to $1,631 million, a reduction of about 16%[28] - The Group's total other liabilities decreased from $492 million at December 31, 2023, to $391 million at September 30, 2024[63] Shareholder Activities - The Group commenced a share repurchase program of $100 million in August 2024, with a current liability of $16 million as of September 30, 2024[69] - The Group issued 1,456 thousand ordinary shares at $0.50 each during the period, compared to 1,943 thousand shares issued in the same period of 2023[83] - The Group repurchased and canceled a total of 4,532 thousand ordinary shares at $0.50 per share under a share repurchase program, with a total cost of $122 million, significantly higher than $11 million in the previous year[85] Acquisitions and Impairments - The acquisition of Opiant was completed for an upfront cash consideration of $146 million, with an additional potential payment of up to $8.00 per share based on sales milestones[86] - The Group incurred impairment charges of $42 million in Q2 2024 related to the discontinuation of PERSERIS sales and marketing, with additional charges of $21 million recorded in Q3 2024[92] - The Group discontinued its collaboration agreement for the CT-102 digital therapeutic product, incurring contract termination fees of approximately $7 million and a non-cash impairment charge of approximately $8 million[94] Market Outlook - The company expects SUBLOCADE peak net revenue to exceed $1.5 billion, driven by strong execution and potential FDA label updates[2] - U.S. buprenorphine medication-assisted treatments (BMAT) are projected to grow in the mid- to high-single digit percentage range long-term due to increased public awareness and regulatory actions[9]