Indivior Pharmaceuticals, Inc. Q4 FY2024 earnings call

• Took decisive actions in 2024 including cost reductions over $100M annually, narrowing focus to opioid use disorder, and resolving legacy litigation.
• SUBLOCADE had 20% net revenue growth in 2024, with 25% more patients treated compared to 2023.
• OPVEE had 170 experience programs with positive anecdotal feedback. New products (SUBLOCADE and SUBOXONE film) accounted for over 50% of rest of world net revenue.
• Pipeline focused on two opioid use disorder Phase 2 assets, with Phase 2 studies on track. Capital allocation focus on reinvesting in SUBLOCADE, completing Phase 2 studies, and maintaining financial flexibility.

SUBLOCADE: In 2024, SUBLOCADE had 20% net revenue growth, ending the year with $756 million in total net revenue. It treated approximately 171,000 patients at the end of 2024, a 25% increase from 2023. Rest of the World net revenue for SUBLOCADE was up 27% to $52 million. SUBOXONE Film: US net revenue declined in 2024 due to intensified competitive generic pricing activity, with net revenue expected to decline sharply in 2025. OPVEE: Launched ~16 months prior, adoption was slower than expected due to harm reduction voice concerns, but had 170 experience programs with positive feedback. PERSERIS: Discontinued midyear 2024 on profitability grounds.

• Total net revenue expected $955M to $1.25B in 2025, a 17% decline vs 2024. SUBLOCADE net revenue expected $725M to $765M (midpoint ~1% decline y-o-y).
• OPVEE net revenue guidance $10M to $15M. SUBOXONE Film net revenue expected to decline ~55% vs 2024.
• Operating expenses expected down over $50M y-o-y in 2025, adjusted operating profit $185M to $225M.

• Competition in U.S. long-acting injectable category impacting SUBLOCADE.
• Funding gaps in justice system affecting SUBLOCADE near-term net revenue.
• Volatility from legacy litigation.
• Potential rapid erosion of SUBOXONE Film net revenue if share drops quickly.

Q: David Amsellem asked about competition in CGS, share of new starts for SUBLOCADE, and SUBOXONE long-term outlook.

A: Mark Crossley, Ryan Preblick, and Richard Simkin responded, discussing CGS funding gaps vs competition, cohort share stabilization at 65-35, and constructive pricing in SUBOXONE market.

Q: Brandon Folkes asked about return to top line growth in 2026 and new starts for SUBLOCADE.

A: Mark Crossley and Richard Simkin replied, stating 2026 growth expected as market stabilizes post-transition with strong unmet need in opioid use disorder.

Q: Paul Cuddon asked about SUBLOCADE Q4 performance, SUBOXONE pricing pressure.

A: Ryan Preblick and Mark Crossley responded, discussing Q4 SUBLOCADE stronger-than-expected results and SUBOXONE Film pricing pressure from generic competition.

Q: Chase Knickerbocker asked about SUBLOCADE market growth assumptions and CGS growth.

A: Ryan Preblick and Mark Crossley answered, detailing LAI market growth assumptions and CGS decline due to funding constraints.

Q: Christian Glennie asked about SUBLOCADE marketing investment impact and OPVEE profitability.

A: Ryan Preblick and Mark Crossley replied, explaining marketing investment factored in guidance and OPVEE costs aligned with strategy and expected accretive in future.

Q: Brian Balchin asked about OPVEE profitability and R&D guidance.

A: Ryan Preblick and Mark Crossley responded, stating OPVEE costs aligned with strategy and R&D guidance reflecting focus on opioid use disorder Phase 2 assets and real-world evidence generation.