For my penultimate Barchart article in 2025, I wanted to revisit Indivior (INDV), a Virginia-based developer of opioid addiction treatments that I last covered in early September. At the time, INDV stock had just moved up 11 spots into the top 50 on Barchart’s Top 100 Stocks to Buy list. On Monday, the stock rose 12 spots to 38th, eight places higher than in early fall. More News from Barchart In the past 364 days, Indivior’s share price has risen nearly 200%, with 47% of the gains in the three-plus m ...

Summary of Indivior Conference Call Company Overview - **Company**: Indivior - **Market Cap**: $4 billion - **Annual Turnover**: Approximately $1.2 billion - **Industry**: Opioid Use Disorder Treatment Key Points Q3 Results and Financial Performance - Indivior reported a strong Q3 performance, marking the second consecutive quarterly beat since the new CEO's appointment, with stock reaching a seven-year high [1][2] - The company raised its four-year guidance, attributing this to better-than-expected performance in Sublocade and modest erosion of Suboxone [2][3] - A significant cost-saving initiative is expected to yield $150 million in savings next year, exceeding most expectations [2][3] Product Performance: Sublocade - Sublocade, a first-in-class long-acting injectable for opioid use disorder, has seen a 10% growth this year, up from flat growth at the beginning of the year [3][4] - The product has been used in over 350,000 patients, indicating a strong market presence [4] - Indivior's action agenda focuses on improving commercial execution and enhancing product awareness, contributing to Sublocade's momentum [4][5] Market Opportunity - There are approximately 9 million individuals misusing opioids, with only 2 million receiving treatment with buprenorphine, highlighting a significant growth opportunity for long-acting injectables [3][4] - Current unprompted patient awareness of Sublocade is only 4%, indicating substantial room for growth through consumer education campaigns [9][10] Market Share and Competitive Landscape - Indivior holds a 75% market share for Sublocade, with competitors holding around 30% [20][21] - The company emphasizes the importance of increasing long-acting injectable penetration rather than merely focusing on market share percentages [22][23] Suboxone Performance - Suboxone continues to generate approximately $200 million in revenue, maintaining a 25% share of the film market despite the presence of four generics [24][25] - The stability of generic pricing has contributed positively to Suboxone's revenue profile [25][26] Cost Management and Operational Efficiency - Indivior plans to reduce operational expenses to approximately $450 million next year, with a focus on essential investments for Sublocade [28][29] - The company has reduced headcount by over 30% and discontinued non-essential sales and marketing efforts [29][30] Future Growth and Pipeline - Indivior is preparing to enter a phase of accelerated growth starting January 1, 2026, with expectations of increased revenue from Sublocade [15][17] - The company is exploring new growth drivers and remains open to acquiring commercial-stage assets with potential revenue of at least $200 million [36][37] - Upcoming phase two trials for new products, including a three-monthly formulation and an orexin-1 antagonist, are fully funded and will be evaluated based on data outcomes [45][46] Capital Allocation and Shareholder Returns - Indivior has a history of share buybacks, having repurchased $400 million worth of shares at an average price of $14.60 [42][41] - The company is currently focused on operational stability and growth before considering further capital returns to shareholders [41][42] Conclusion Indivior is positioned for growth in the opioid use disorder market, with a strong focus on its flagship product Sublocade. The company is implementing strategic cost-saving measures while preparing for future growth opportunities through product development and market expansion.

Core Insights - The podcast discusses stocks with the highest Zacks Rank (1 Strong Buy) and the best VGM (Value, Growth, Momentum) scores, indicating strong earnings estimates and attractive fundamentals [1][2]. Group 1: Stock Highlights - Indivior PLC (INDV) is a small-cap stock with a market cap of $3.94 billion, focusing on medicines for opioid use disorder. It has raised its 2025 revenue guidance for Sublocade, expecting earnings to rise by 30.1% in 2025 and 20.1% in 2026. Shares are up 157% year-to-date [3][4]. - The Travelers Companies, Inc. (TRV) is a large-cap property and casualty insurer with a market cap of $61.9 billion. It reported strong underwriting results in Q3 2025, with earnings expected to rise by 14.6% in 2025 and 6% in 2026. Shares are up 14% year-to-date, with a forward P/E of 11.2, indicating value [4][5]. - OppFi Inc. (OPFI) is a digital finance platform with a market cap of $877 million, providing affordable credit to 48 million Americans lacking traditional options [7].

Core Viewpoint - Indivior Plc's shares rose by 15.5% following the release of strong third-quarter results and an upgrade in full-year guidance, highlighting the success of its "Indivior Action Agenda" plan and the growth of its key medication, Sublocade [1] Group 1: Financial Performance - Indivior's management reported a 7% increase in U.S. Sublocade sales for the first nine months of 2025 compared to the same period in 2024 [3] - The updated full-year guidance for total Sublocade sales is now projected to be between $825 million and $845 million, an increase from the previous guidance of $765 million to $785 million [3] Group 2: Product Overview - Sublocade is indicated for treating moderate to severe opioid use disorder, offering a monthly dosage system that provides significant benefits over the daily regimen of buprenorphine [2] - The medication's unique delivery system is expected to yield more reliable outcomes for patients suffering from opioid use disorder [7] Group 3: Strategic Initiatives - Indivior aims to achieve $150 million in annual expense savings by 2026 through restructuring and consolidating its operations [5] - The company's three-phase plan includes accelerating Sublocade revenue growth in the U.S. and converting it into earnings and cash flow generation, followed by using the improved financial profile for growth through acquisitions [5][6]

Core Insights - Indivior has moved up 11 positions to the 46th spot on Barchart's Top 100 Stocks to Buy, indicating strong market interest and momentum [1] - The company has shown significant growth, with a nearly 13% increase in stock price over the past month and a remarkable 139% increase over the past 12 months [1] Financial Performance - In the first half of 2025, Indivior reported a net profit of $65 million, a 281% increase compared to a loss of $36 million in the same period the previous year [4] - On a non-GAAP basis, earnings were $121 million, down from $138 million, primarily due to previous litigation expenses [4][5] - For the full year 2025, Indivior expects top-line revenue of $1.055 billion, an increase from the previous estimate of $990 million, although down from $1.18 billion in 2024 [6] - The company anticipates adjusted EBITDA of $288 million for 2025, up from a prior estimate of $240 million [7] Product and Market Dynamics - Indivior's revenue is heavily reliant on its Sublocade product, which accounts for 70% of annual revenue, with the U.S. market contributing 93% of Sublocade revenue [8] - Despite increased competition leading to a decline in market share for its Suboxone products, Sublocade revenue is expected to rise by 3% in 2025, reaching $775 million [6]