Indivior PLC(INDV) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported Q4 2024 net revenue of $298 million, a 2% increase from the previous year, driven by SUBLOCADE [49] - Total SUBLOCADE net revenue reached$ 194 million in Q4, marking a 10% year-over-year increase and a 2% increase from the prior quarter [49] - Full year 2024 net revenue increased by 9%, with total SUBLOCADE net revenue at $756 million, up 20% year-over-year [54] - Adjusted operating profit for full year 2024 grew by 16% to$ 312 million, reflecting increased top-line growth and lower overall expenses [58] Business Line Data and Key Metrics Changes - SUBLOCADE was the primary growth driver, with a 20% increase in net revenue year-over-year [6][19] - OPVEE net revenue for Q4 was immaterial following two BARDA orders in Q3 [51] - PERSERIS net revenue for Q4 was $9 million, primarily from supply orders to minimize patient disruption [52] Market Data and Key Metrics Changes - The U.S. market for SUBOXONE Film saw a decline in market share to approximately 15%, down three percentage points from the previous year [51] - In the Rest of the World, Q4 2024 net revenue increased by 7% at actual exchange rates, driven by SUBLOCADE [52] Company Strategy and Development Direction - The company is focusing on opioid use disorder and plans to accelerate awareness of SUBLOCADE among patients and healthcare providers [9][10] - Proposed label changes for SUBLOCADE are expected to enhance its competitive positioning [10] - The company has narrowed its commercial and R&D pipeline focus to strengthen its leadership in opioid use disorder [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2024 as a challenging year but expressed confidence in the actions taken to support long-term growth [6][11] - The company anticipates a transition year for SUBOXONE Film and SUBLOCADE in 2025, with expected declines in total net revenue and adjusted operating profit [12][63] - Management expects to achieve SUBLOCADE's peak net revenue goal of over$ 1.5 billion in the long term [16][74] Other Important Information - The company implemented cost reductions exceeding $100 million annually to support reinvestment in SUBLOCADE and its pipeline assets [9] - The company ended 2024 with gross cash and investments of$ 347 million, down from $451 million at the end of 2023 [60] - The company expects to generate positive underlying cash flows from operations in 2025 [23] Q&A Session Summary Question: How much of the dynamics in CGS are related to competition? - Management indicated that the funding constraints are primarily tied to budget decisions within facilities rather than competition [82] Question: Can you talk about your share of new starts? - Management reported that they currently have about 71% of new starts, which is consistent with previous quarters [87][88] Question: What is your expectation for SUBOXONE pricing long-term? - Management expects continued pricing pressure due to competition and has factored this into their guidance [116] Question: How do you view the impact of a potential fifth generic entrant? - Management believes they have accounted for the impact of a fifth generic entrant in their guidance [121][123] Question: What are the overall buprenorphine LAI market growth assumptions for 2025? - Management projected market growth between 20% to 30% for 2025, factoring in continued share impact [128]