• Total Net Revenue: $307 million, a 13% increase year over year.

• Supplicate Net Revenue: $191 million, up 14% year over year.

• Adjusted Operating Profit: Increased 62% to $97 million.

• Cash Position: $344 million at the end of the third quarter.

• Adjusted Gross Margin: 82%, down sequentially and year over year.

• SG&A Expenses: $133 million, a decrease of 11% year over year.

• R&D Expenses: $22 million, an increase of 22% year over year.

• Adjusted Net Income: Increased 47% to $72 million.

• US Supplicate Dispenses: 158,500, a 19% increase year over year.

• Suboxone Film Share: Averaged approximately 15% in the quarter.

• Revised Full Year 2024 Revenue Guidance: $1.125 billion to $1.165 billion.

• Supplicate Full Year Guidance: $725 million to $745 million, representing 17% growth at midpoint.

• Operating Expense Reduction Target for 2025: $10 million to $20 million.

• Warning! GuruFocus has detected 3 Warning Signs with INDV.

Release Date: October 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Indivior PLC (NASDAQ:INDV) reported a 13% year-over-year increase in total net revenue for the third quarter, reaching $307 million.

• The company's adjusted operating profit increased by 62% to $97 million, indicating strong underlying profitability.

• Sublocade's market share of new patients was 72% at the end of the third quarter, maintaining its leadership position.

• Indivior PLC (NASDAQ:INDV) is actively pursuing cost reduction strategies, including streamlining G&A expenses and reprioritizing its R&D pipeline.

• The company reached a preliminary agreement to settle the last remaining legacy antitrust cases for $40 million, which could resolve ongoing litigation issues.

Negative Points

• Despite a 2% increase in Sublocade dispenses quarter-over-quarter, there was a modest decline in net revenue due to trade destocking.

• The competitive landscape is impacting Sublocade's growth, with intensified competition leading to the loss of significant accounts.

• Indivior PLC (NASDAQ:INDV) had to discontinue the development of certain pipeline assets, including a phase 2B study for cannabis use disorder that did not meet its endpoints.

• The company's adjusted gross margin decreased due to cost inflation and unfavorable pricing on specific production batches.

• Indivior PLC (NASDAQ:INDV) revised its full-year 2024 guidance, reflecting headwinds from competition and funding fluctuations, with a midpoint growth of only 5% year-over-year.

Q & A Highlights

Q: Can you discuss your expectations for market share of new starts in the competitive landscape and your approach to capital deployment, including share buybacks and business development? A: Mark Crossley, CEO, explained that Indivior remains confident in maintaining a strong market share, with new patient share above 70% and stabilization in the mid-60% range. The company sees significant unmet needs in the market, with room for two players. Regarding capital deployment, Indivior will continue to prioritize advancing assets and maintaining financial flexibility. Share buybacks are ongoing, and business development is not a short-term focus.