Indivior PLC (LSE:INDV) has maintained its full-year outlook, which is in part reassuring and slightly odd given the profit warning it issued two weeks ago effectively reset expectations.
In its third-quarter results, the company cited short-term 'headwinds' but spoke of the longer-term picture as it attempted to allay investors' anxieties over increased competition from the newly launched Brixadi for its opioid addiction treatment, Sublocade.
Analysts certainly see Brixadi as a potential threat to Indivior's dominance of the sector.
The company’s third-quarter net revenue rose by 13% to $307 million, with Sublocade generating $191 million, up 14% from the same period last year. Year-to-date, Sublocade has brought in $562 million, a 24% increase over 2023.
CEO Mark Crossley emphasised that while competition presents challenges, Indivior remains confident in Sublocade's leadership in the market, noting that it holds a mid-60% share in key co-prescribing groups.
"Sublocade's differentiated profile, particularly in the face of synthetic opioids, will help it retain its leadership position," Crossley said. He also reaffirmed the company’s aim to achieve peak net revenue of over $1.5 billion for Sublocade.
Indivior has taken steps to streamline operations, with plans to cut pipeline activities outside opioid use disorder (OUD) to support Sublocade’s growth and manage costs. The company expects to reduce operating expenses by $10 million to $20 million in 2025.
For the third quarter, Indivior posted a $4 million operating profit. Adjusted, the figure rose to $97 million, representing a 62% year-on-year increase.
The quarter also included a $39 million provision for a preliminary settlement to resolve remaining antitrust cases, moving the company closer to resolving legacy litigation issues.