Indivior PLC(US:INDV)2025-10-30 13:00Financial Data and Key Metrics Changes - Total net revenue for Q3 2025 was $314 million, a 2% increase year-over-year, driven by a 15% increase in SUBLOCADE net revenue to $219 million [18][19] - Adjusted EBITDA for Q3 2025 was $120 million, up 14% compared to the same quarter last year, attributed to higher net revenue and lower operating expenses [20] - The company raised its full-year 2025 total net revenue guidance to a range of $1.18 billion to $1.22 billion, reflecting better-than-expected performance [20][21] Business Line Data and Key Metrics Changes - SUBLOCADE experienced a strong 15% year-over-year growth, with dispense volume growth of 8% compared to the prior year [3][19] - The number of active SUBLOCADE prescribers grew by 11% year-over-year, indicating improved commercial execution [12] - SUBOXONE Film pricing remained stable, contributing to the overall revenue despite expected pricing pressure [18][19] Market Data and Key Metrics Changes - In the U.S., total net revenue grew by 2% year-over-year, with adjusted EBITDA increasing by 14% [4] - The market share for SUBLOCADE in the long-acting injectable (LAI) category remained stable at approximately 75% [12] - The company is optimizing its rest of world business, focusing on Australia, Canada, France, and Germany, which together generate 77% of forecasted rest of world net revenue [8] Company Strategy and Development Direction - The company is focused on completing Phase One of the Indivior Action Agenda, "Generate Momentum," and plans to enter Phase Two, "Accelerate," on January 1, 2026 [5][9] - Key priorities include growing SUBLOCADE in the U.S. and simplifying the organization to enhance operational efficiency [6][7] - A new direct-to-consumer campaign, "Move Forward in Recovery," was launched to raise awareness of SUBLOCADE as a treatment option [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2025 with momentum and entering Phase Two with a strong position [9][25] - The company anticipates significant profitability and cash generation acceleration in 2026 [9][24] - Management emphasized the importance of maximizing the SUBLOCADE opportunity in the U.S. while ensuring essential investments [31] Other Important Information - The company has taken actions to reduce operating expenses by at least $150 million annually starting in 2026, primarily through headcount reduction and discontinuation of non-essential activities [6][30][23] - Non-GAAP operating expenses for Q3 2025 were $145 million, down 3% year-over-year [20] Q&A Session Summary Question: Can you break down the new $150 million OpEx cuts for 2026? - Management indicated that almost half of the $150 million savings is tied to labor, with a headcount reduction of over 32% and discontinuation of non-essential spending [30] Question: How does SG&A as a percentage of revenue compare to industry peers? - Management stated that the focus is on maximizing SUBLOCADE opportunities rather than targeting specific SG&A reductions [31] Question: Can you discuss the opportunity in commercial patients versus Medicaid? - Management highlighted efforts to grow both commercial and Medicaid channels, with a focus on improving commercial execution [37] Question: What are the expectations for SUBLOCADE growth in 2026? - Management is optimistic about maintaining double-digit year-over-year growth for SUBLOCADE, with a focus on commercial execution and direct-to-consumer campaigns [46] Question: What is the outlook for R&D spending going forward? - Management confirmed that R&D spending will be streamlined, focusing on Phase Two assets while preserving capabilities for potential Phase Three advancements [39][56]