Indivior (INDV) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenue rose 8% year-over-year to $299 million, with U.S. net revenue up 12% and rest of world down 10% due to shipment timing and legacy product pressure.

• SUBLOCADE net revenue grew 24% year-over-year to $192 million, with active patients up 49% to 160,400 and dispenses up 25%.

• Adjusted operating profit increased 11% to $79 million, while reported operating loss was ($132 million) due to legal settlements and exceptional items.

• $75 million provision taken for expected opioid litigation settlement; $100 million new share repurchase program announced.

• Primary U.S. listing completed, with plans to report in U.S. GAAP starting 2025 to support U.S. index inclusion.

Financial highlights

• Q2 2024 adjusted gross margin was 84%, up from 83% last year; reported gross margin fell to 69% due to exceptional items.

• Adjusted net income for Q2 2024 was $60 million, a 7% increase year-over-year; adjusted diluted EPS $0.44, up 13%.

• Adjusted SG&A expenses were $144 million in Q2, up 15% year-over-year due to increased commercial investment.

• Cash and investments at quarter-end totaled $405 million, with $70 million used for share repurchases and $70 million in settlement payments during H1.

• Q2 2024 reported net loss was $107 million, compared to $39 million income in Q2 2023.

Outlook and guidance

• Full-year 2024 net revenue guidance: $1.15–$1.215 billion, representing 8% growth at midpoint.

• SUBLOCADE FY 2024 net revenue expected at $765–$805 million, implying 25% year-over-year growth at midpoint.

• Adjusted operating income expected between $285–$320 million, with 12% growth and ~100 bps margin improvement at midpoint.

• OPVEE 2024 net revenue guidance lowered to $9–$14 million, mainly from BARDA contract.

• Guidance assumes no material FX changes and continued adverse market dynamics for SUBLOCADE.