Indivior PLC(US:INDV)2022-02-16 17:34Financial Data and Key Metrics Changes - Indivior reported total net revenue growth of 22% for 2021, driven by an 88% increase in SUBLOCADE net revenue to $244 million [51][52] - Adjusted operating income more than doubled to $187 million, resulting in an adjusted operating margin of 24% [55] - Year-end gross cash balance was over $1 billion, with a net cash position of $853 million after a $100 million share repurchase [57] Business Line Data and Key Metrics Changes - SUBLOCADE achieved net revenue of $75 million in Q4 2021, a 92% increase year-over-year [52] - SUBOXONE Film grew 10% for the full year, with a market share increase to 22% in Q4 due to being reinstated on the New York State formulary [53] - PERSERIS showed steady progression, although growth was hampered by the pandemic [51][21] Market Data and Key Metrics Changes - The majority of SUBLOCADE's net revenue growth is now generated in the Organized Health System channel, with access opened to over 400 of the 500 priority targets [15][110] - The opioid epidemic continues to worsen, with over 100,000 drug overdose deaths in the U.S. in the past year, primarily due to synthetic opioids [5][6] Company Strategy and Development Direction - The company aims to build SUBLOCADE towards a $1 billion-plus net revenue goal and diversify revenue streams [9][13] - Indivior is exploring a potential U.S. listing to enhance visibility and align with its strategy, as the U.S. market represents 80% of current revenue [12][25] - Investments are being made in R&D to support SUBLOCADE and PERSERIS, as well as to explore new product launches outside the U.S. [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in closing the treatment gap for opioid use disorder, with expectations for market expansion at mid to high single-digit rates [27][28] - The company is optimistic about the future, citing the under-treatment of opioid use disorder and the potential for SUBLOCADE to become a leading treatment option [29][30] Other Important Information - Indivior is investing in expanding its sales force, particularly for PERSERIS, to enhance market penetration [21][31] - The company is also focused on generating real-world evidence to support the use of SUBLOCADE in various settings, including the criminal justice system [38][41] Q&A Session Summary Question: On SUBLOCADE's growth and stocking contribution - Management noted about $4 million to $5 million of stocking in Q4, primarily due to year-end wholesale decisions and price increase speculation [79] Question: Breakdown of growth drivers for SUBLOCADE - Growth is attributed to new patient starts, longer treatment durations, and a recent price increase of approximately 5% [83] Question: Capital allocation and potential M&A targets - The company prioritizes investments in SUBLOCADE and diversification efforts, while also considering inorganic growth opportunities in addiction and behavioral health [90] Question: U.S. listing plans and potential capital raise - Management emphasized the importance of consulting with shareholders before making decisions regarding a U.S. listing [92] Question: Regional progress for SUBLOCADE patients - Growth is concentrated in coastal regions of the U.S., with a focus on Organized Health Systems and the criminal justice system [99] Question: Stability of SUBOXONE market share - Management indicated that the market dynamics for SUBOXONE have stabilized, with an expected share erosion of about 1.5 points [102] Question: Impact of Brixadi on peak sales outlook - Management remains confident in SUBLOCADE's potential to exceed $1 billion in sales, despite competition from Brixadi [104] Question: Criminal justice system traction for SUBLOCADE - Significant progress has been made in accessing Organized Health Systems and criminal justice systems, with ongoing legislative support for treatment [112]