Indivior Pharmaceuticals Inc Q2 FY2025 earnings call

• Joe Ciaffoni introduced the Indivior Action Agenda, which has phases: Phase 1 (2025) to generate momentum, including simplifying the organization, improving SUBLOCADE commercial execution, and assessing various business aspects. - Pat Barry discussed SUBLOCADE's strong fundamentals, including over 350,000 patients treated, growing prescriber base, and label updates. He outlined efforts to improve commercial execution like sharpening field force messaging, improving productivity, reinforcing treatment benefits, and enhancing omni-channel efforts. - Ryan Preblick reviewed financial results, noting adjusted EBITDA of $88 million in Q2, raised 2025 net revenue guidance to $1.030B-$1.080B, SUBLOCADE net revenue to $765M-$785M, and adjusted EBITDA to $275M-$300M. Also mentioned balance sheet strength with $538M in gross cash and investments.

In the second quarter, SUBLOCADE achieved record net revenue. Total SUBLOCADE net revenue was $209 million, up 9% year-over-year and 19% sequentially. It was driven by 6% year-over-year dispense growth and 9% sequential growth. SUBOXONE Film in the U.S. outperformed expectations with stable pricing. R&D expenses decreased 20% year-over-year due to reprioritization of pipeline activities to focus on Phase 2 OUD assets. SUBLOCADE held approximately 75% market share in the U.S. during the first half of 2025. Revenue contribution: SUBLOCADE was the key driver with significant growth, while SUBOXONE Film contributed with stable pricing.

• Raised 2025 total net revenue guidance to $1.030 billion to $1.080 billion. - Increased SUBLOCADE 2025 net revenue guidance to $765 million to $785 million. - Revised adjusted EBITDA guidance to $275 million to $300 million. - Expect effective corporate tax rate for 2025 to be between 19% and 22%.

• Operational execution risks in improving commercial execution in the U.S. - Potential impact of Medicaid changes on SUBLOCADE's market. - Challenges in achieving expected growth rates despite strong fundamentals.

Q: Joe, can you talk about prioritizing commercially covered patients versus Medicaid and the criminal justice system channel?

A: Joe mentioned focusing on commercial but not deemphasizing Medicaid, and the criminal justice system is an opportunity with stability seen after prior pressure. Pat added focusing on commercial to capitalize on the 60% covered lives but 25% volume.

Q: Chase asked about guidance, price compression on SUBOXONE and SUBLOCADE growth.

A: Joe said no additional price erosion seen for SUBOXONE Film in guidance, and SUBLOCADE guidance incorporates growth with work ahead but assumes sequential growth.

Q: Dennis asked about aligning SG&A to industry peers.

A: Ryan said assessing the organization to resource SUBLOCADE and fund essential programs, with work ongoing to share cost cut details later.

Q: Thibault asked about stocking and gross-to-net dynamics for SUBLOCADE and Medicaid headwinds.

A: Ryan said stocking impact minimal and projected stable, Joe discussed Medicaid dynamics with opportunities ahead.

Q: Carl asked about commercial opportunity long-term.

A: Joe said commercial is a focus to increase from 25% volume but not expecting it to match Medicaid contribution.