Indivior PLC(US:INDV)2025-04-24 14:45Financial Data and Key Metrics Changes - Total net revenue in Q1 2025 declined by 6% year on year, amounting to $266 million, primarily due to intensified competition from generic film providers and the discontinuation of PERSERIS [6][16] - Non-GAAP adjusted operating profit increased by 10% compared to the previous year, reflecting lower expenses that partially offset the reduction in total net revenue [11] - Non-GAAP adjusted net income decreased by 11% year on year to $51 million, influenced by revenue dynamics and increased net finance expenses [25] Business Line Data and Key Metrics Changes - SUBLOCADE revenue declined by 2% year on year, with U.S. performance impacted by funding challenges in the justice system, although there was growth in the organized health system channel [7][18] - SUBLOCADE's net revenue outside the U.S. grew by 8% to $13 million, indicating strong performance in international markets [18] - Suboxone Film's average market share in the U.S. was approximately 15%, down by three percentage points from the previous year, reflecting ongoing pricing pressures [21] Market Data and Key Metrics Changes - U.S. net revenue declined by 8% year on year, while the rest of the world saw a 3% increase in reported revenue [16][17] - Approximately 170,700 patients were treated in the U.S. over the past twelve months, representing a 14% increase year on year [9] Company Strategy and Development Direction - The company is focused on reinvesting approximately $50 million of gross savings into SUBLOCADE and its pipeline, while maintaining financial flexibility and disciplined capital allocation [12][28] - Management anticipates that SUBLOCADE's net revenue performance will improve in the second half of the year due to commercial investments and label updates [10][19] - The company is actively monitoring the evolving funding landscape in the justice system, with expectations for growth as new systems are added and funding challenges are addressed [56][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering full-year 2025 guidance, despite current challenges, and noted that the opioid epidemic remains a bipartisan issue with strong governmental support [35][29] - The company expects to see stabilization in the competitive landscape for SUBLOCADE, with new patient share remaining stable at over 70% [10][45] - Management highlighted the importance of generating real-world evidence to support the use of OpV and the potential for growth in the long-acting injectable category [84][86] Other Important Information - The company ended Q1 with gross cash and investments of $400 million, higher than expected due to a decrease in net working capital [27] - The court granted the company's motion to dismiss U.S. shareholder claims, with a 30-day period for plaintiffs to amend their complaint [29] Q&A Session Summary Question: Any proposals regarding Medicaid funding that might change the outlook? - Management is closely monitoring the situation, noting that it remains a bipartisan issue with strong governmental support for opioid treatment [35] Question: When will SUBLOCADE return to growth? - Management expects growth to accelerate in the organized health system channel through marketing initiatives and label enhancements [44] Question: Expectations for CGS dynamics and funding improvements? - Management anticipates growth in criminal justice accounts through the year, with potential funding improvements from various interventions [56][60] Question: Impact of pricing and destocking for SUBLOCADE in Q1? - There was some destocking in Q1, but overall pricing remained stable [63] Question: Expectations around the marketing campaign and new label? - Management sees significant opportunity for awareness and growth in the long-acting injectable category, with early indicators showing positive impact from marketing efforts [68] Question: Further pricing pressure for Suboxone? - Management expects continued price erosion due to competitive pressures, particularly with the introduction of additional generics [76][78] Question: Progress on alternate sites of care for SUBLOCADE? - The company has made progress with eight partners and is working to expand access to alternate sites of care [105]