Indivior (INDV) Q1 2025 earnings summary

Executive summary

• Q1 2025 net revenue was $266 million, down 6% year-over-year, mainly due to intensified generic competition and PERSERIS discontinuation, but results aligned with expectations and guidance.

• SUBLOCADE net revenue reached $176 million, down 2% year-over-year, with growth in organized health systems offset by justice system funding gaps; patient treatment numbers in the U.S. increased 14%.

• SUBLOCADE maintained over 70% new patient share and 65% share among experienced dual prescribers, indicating market stability.

• Non-GAAP adjusted operating profit rose 10% year-over-year due to cost streamlining, while reported operating income was $66 million, down 12%.

• CEO transition planned for May 2025, with Mark Crossley stepping down and Joe Ciaffoni taking over.

Financial highlights

• Total net revenue for Q1 was $266 million, down 6% year-over-year; U.S. revenue declined 8% to $222 million, while Rest of World grew 3% to $44 million.

• SUBLOCADE net revenue was $176 million, down 2% year-over-year; outside U.S., SUBLOCADE revenue grew 8% to $13 million.

• OPVEE net revenue was immaterial; full-year guidance remains $10–$15 million, including an $8 million BARDA order.

• SUBOXONE Film U.S. share averaged 14.8–15%, down 3 percentage points year-over-year, with further price erosion expected.

• Gross margin was 83%, down from 87% prior year; non-GAAP adjusted SG&A expenses fell 8%, and R&D expenses dropped 19%.

• Non-GAAP adjusted operating income was $69 million, down 10% year-over-year; non-GAAP adjusted net income was $51 million, down 11%.

• Non-GAAP adjusted EPS decreased 2% to $0.41, aided by a 9% lower diluted share count.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: total net revenue expected at $955–$1,025 million, SUBLOCADE at $725–$765 million, and OPVEE at $10–$15 million.

• Non-GAAP gross margin projected in the low to mid-80% range; non-GAAP OPEX $610–$625 million.

• Further price erosion for SUBOXONE Film anticipated throughout 2025; U.S. SUBOXONE Film net revenue expected to decline ~55% from FY 2024.

• Growth in SUBLOCADE net revenue anticipated in H2 2025, supported by commercial investments and FDA label updates.

• Effective tax rate expected at 22–25% for the year.