Indivior (INDV) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue grew 13% year-over-year to $307 million, with SUBLOCADE net revenue up 14% to $191 million and adjusted operating profit up 62% to $97 million.

• U.S. patients on SUBLOCADE grew 37% year-over-year to 166,600, with significant growth in alternate sites of care and ex-U.S. markets.

• OPVEE net revenue reached $15 million in Q3, driven by BARDA product orders.

• Preliminary settlement reached to resolve remaining legacy antitrust cases, with a $39–$40 million provision recorded.

• Financial results aligned with prior guidance, with continued focus on SUBLOCADE growth, streamlining actions, and pipeline progression.

Financial highlights

• Total net revenue for Q3 was $307 million, up 13% year-over-year; U.S. net revenue grew 15%, rest of world up 5%.

• Adjusted gross margin was 82%, down year-over-year due to prior year favorable pricing and cost inflation.

• Adjusted net income grew 47% to $72 million; adjusted diluted EPS was $0.54, up 59% year-over-year.

• Cash and investments at quarter-end totaled $344 million, with $94 million YTD cash flow from operations.

• Share repurchases totaled $122 million YTD, with 4.9 million shares repurchased as part of a $100 million program.

Outlook and guidance

• FY 2024 net revenue guidance: $1.125–$1.165 billion, representing 5% year-over-year growth at midpoint.

• SUBLOCADE net revenue guidance: $725–$745 million, 17% year-over-year growth at midpoint.

• Adjusted operating profit guidance: $260–$280 million; net reduction in overall operating expense of $10–$20 million expected in FY 2025 versus FY 2024 midpoint.

• OPVEE net revenue expected at $15 million for the year, with non-BARDA revenue immaterial.

• SG&A guidance narrowed to $555–$560 million; R&D reduced to $115–$120 million.