Indivior Cuts 2024 Outlook As Competition And Market Pressures Weigh On SUBLOCADE: Details

Indivior PLC INDV shares are trading lower after the company reported preliminary third-quarter revenue results and cut its FY24 net revenue guidance below estimates.

The company expects third-quarter net revenue of $302 million – $309 million versus the consensus of $289.37 million.

Also, Indivior trimmed its FY24 net revenue outlook to $1.125 billion – $1.165 billion (consensus $1.185 billion) from $1.15 billion – $1.215 billion.

In particular, the company now expects lower-than-anticipated net revenue for SUBLOCADE, with projected net revenue of $187 million – $192 million in the third quarter and $725 million – $745 million (versus $765 million to $805 million expected earlier) for FY24.

Mark Crossley, CEO of Indivior, stated, “We are seeing faster than expected initial adoption of the competitive product to SUBLOCADE. This dynamic, together with greater variability in the timing of funding among Criminal Justice System customers, as well as incremental trade stocking pressure, has resulted in net revenue below our expectations set out in July. We are reducing our FY 2024 guidance to reflect these impacts.”

Also, looking to the year ahead, the company expects pressure on SUBLOCADE volume growth from continued initial competitor adoption as the U.S. market adjusts to two long-acting injectable products.

Indivior maintained its expectation for peak net revenue from SUBLOCADE to exceed $1.5 billion but no longer anticipates a run rate of $1 billion by the end of 2025.

Crossle added, “We remain firm in our conviction that SUBLOCADE has a differentiated and optimal profile for opioid use disorder (OUD) patients, including our belief that it will best meet the increasing challenges that synthetic opioids are presenting to OUD patients and treatment providers.”

”Additionally, we expect SUBLOCADE’s profile to be further enhanced with important label updates in February 2025 that, if approved by the FDA, are expected to improve both the patient and healthcare provider experience.”

Apart from this, the company reiterated outlook for an adjusted gross margin in low to mid 80% range and lowered adjusted operating profit guidance to $260 million – $280 million (from $285 million – $320 million) for 2024.

Price Action: INDV shares are down 16.6% at $7.87 premarket at the last check Thursday.

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