Indivior ends year better than expected, flags tough 2025

(Sharecast News) - Shares in Indivior were sliding on Thursday, even after it reported a better-than-expected end to a difficult year, with a 9% increase in full-year 2024 net revenue to $1.19bn amid continued growth in its opioid use disorder treatment Sublocade. The London-listed opioid misuse treatment specialist recorded a net loss of $48m, swinging from a $2m profit in the prior year, largely due to litigation settlements and share repurchases.

Sublocade generated $756m in revenue for the year, up 20% from 2023, with strong patient enrollment growth in the US.

Despite that, Indivior said its overall net revenue for 2025 was projected to decline by 17% at the mid-point, reflecting accelerated generic competition for Suboxone Film and the discontinuation of Perseris.

Sublocade's 2025 revenue was expected to decline modestly by 1% at the mid-point.

In the fourth quarter, total revenue increased 2% year-on-year to $298m.

Adjusted operating profit for the quarter remained flat at $66m, while adjusted net income fell 33% to $41m.

The decline was put down to increased operating expenses and higher tax costs.

Full-year adjusted operating profit rose 16% to $312m, reflecting the strength of Sublocade.

Indivior completed a $100m share buyback programme in January, repurchasing and canceling 9.4 million shares.

The company also refinanced $400m in debt, using proceeds to repay existing obligations and retain excess cash for general corporate purposes.

Cash and investments fell to $347m from $451m at the end of 2023, mainly due to litigation settlements and share repurchases.

The company highlighted continued growth in US buprenorphine medication-assisted treatments, which expanded at a mid-single-digit rate in 2024.

It said it expected the trend to persist due to regulatory support and increased public awareness of opioid treatment options.

Indivior said it was awaiting final FDA approval for an updated Sublocade label, with no outstanding regulatory issues remaining.

Looking ahead, Indivior forecast 2025 net revenue between $955m and $1.03bn, with an adjusted operating profit in the range of $185m to $225m.

The company said it was planning to achieve over $100m in annual cost savings through restructuring while continuing investments in Sublocade and pipeline assets.

"Indivior ended 2024 with a better-than-expected fourth quarter performance that put our full-year results ahead of our October guidance," said chief executive officer Mark Crossley.

"While we delivered 20% year-on-year NR growth in Sublocade, our 2024 performance was impacted by previously-disclosed transitory items and competition in the US long-acting injectable category.

"As shared in our third quarter results, we have narrowed our strategic focus to meeting opioid use disorder patients' unmet needs with Sublocade, Opvee and a strong pipeline of phase two assets."

As a result, Crossley said the company had streamlined its cost base and identified savings exceeding $100m of which about $50m would be reinvested behind Sublocade and its OUD-focused pipeline, and over $50m to help protect adjusted operating profit.

"In 2025, for Sublocade we expect largely unchanged NR at the mid-point of guidance, as strong overall US long-acting injectable category growth and expected benefits from our commercial investments are offset by ongoing competitive dynamics in the US and near-term justice system funding challenges.

"Total company NR is expected to decline 17% at the midpoint due primarily to an expected decrease in Suboxone Film NR of greater than 50% from intensified generic pricing activity along with the potential for a fifth generic entrant."

Indivior's 2025 guidance reflected those dynamics, Mark Crossley explained.

"Looking past 2025, we remain confident that Indivior is well positioned to drive profitable growth and shareholder value creation, and we are resolute in our focus on delivering on our key strategic objective.

"That is to deliver Sublocade's peak net revenue goal of greater than $1.5bn and, in so doing, to transform the lives of patients affected by one of the greatest epidemics of our time."

At 0958 GMT, shares in Indivior were down 21.49% at 681.5p.

Reporting by Josh White for Sharecast.com.