Workflow
Indivior PLC(INDV) - 2024 Q3 - Earnings Call Transcript
INDVIndivior PLC(INDV)2024-10-24 18:02
Filings
Slide

Financial Data and Key Metrics Changes - Third quarter net revenue increased by 13% year-over-year to 307million,drivenprimarilybySUBLOCADE′sperformance[4][14]−Adjustedoperatingprofitroseby62307 million, driven primarily by SUBLOCADE's performance [4][14] - Adjusted operating profit rose by 62% to 97 million, reflecting strong underlying profitability [4][17] - Cash position at the end of the third quarter was 344million,withayear−to−datepositivecashflowfromoperations[4][17]BusinessLineDataandKeyMetricsChanges−SUBLOCADE′snetrevenueforthethirdquarterwas344 million, with a year-to-date positive cash flow from operations [4][17] Business Line Data and Key Metrics Changes - SUBLOCADE's net revenue for the third quarter was 191 million, a 14% increase year-over-year [4][14] - U.S. patients treated with SUBLOCADE grew by 37% year-over-year to 166,600, with a sequential increase of 4% [7] - OPVEE generated net revenue of 15millioninthequarter,reflectingtwoordersfromBARDA[15]MarketDataandKeyMetricsChanges−U.S.netrevenuegrewby1515 million in the quarter, reflecting two orders from BARDA [15] Market Data and Key Metrics Changes - U.S. net revenue grew by 15%, while the rest of the world business grew by 5% at actual currency [14] - SUBLOCADE maintained a 72% share of new patients at the end of the third quarter, with mid-60s percentage share levels across various co-prescribing cohorts [5][25] Company Strategy and Development Direction - The company is focused on streamlining operations and reducing G&A costs to sharpen strategic focus on SUBLOCADE's growth [6][20] - Plans to enhance awareness and adoption of SUBLOCADE following label updates expected in February 2025 [10][30] - The company aims to achieve peak net revenue of over 1.5 billion for SUBLOCADE [7][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business despite a challenging market backdrop for SUBLOCADE [22] - The competitive landscape is expected to stabilize, with significant unmet needs in the market for opioid use disorder treatments [25][26] - The company anticipates continued growth in the opioid use disorder market, with a focus on patient access and treatment options [5][36] Other Important Information - A preliminary agreement for a 40 million settlement to resolve legacy antitrust cases was reached, with expectations to finalize shortly [6][18] - The company is narrowing its pipeline focus to opioid use disorder, discontinuing INDV-1000 for alcohol use disorder [10][21] Q&A Session Summary Question: Competitive landscape and market share expectations - Management indicated that SUBLOCADE's new patient share remains above 70%, with potential for growth in a two-player market [25][26] Question: Capital deployment and share buybacks - The company plans to continue share buybacks while maintaining flexibility for future capital allocation [26][27] Question: Strategy for driving awareness of label updates - Incremental investments will focus on clinician and patient awareness of SUBLOCADE's new developments post-approval [30][31] Question: Clarification on cohort data and market dynamics - Management clarified that the cohort data reflects a mix of co-prescribing, with a significant opportunity for both products in the market [44][45] Question: Visibility over SUBLOCADE's Q4 performance - Guidance for SUBLOCADE reflects anticipated competitive adoption and funding fluctuations, with a range of 725 million to $745 million [40][41]