Indivior reports first-quarter growth, confirms plans to shift main listing

Addiction treatment specialist Indivior reported double-digit net revenue growth for the first quarter on Thursday, with total net revenue rising 12% year-on-year to $284m, as it confirmed its intention to shift its primary listing to the United States.

The FTSE 250 company said Sublocade net revenue jumped 36% to $179m in the three month period, compared to the same time last year.

It reaffirmed its full year guidance, expecting net sales and adjusted operating profit to accelerate throughout the year.

Additionally, the board confirmed its intention to seek shareholder approval in May for a primary listing in the US, aiming to better align with growth opportunities, attract more US investors, and enhance inclusion in US indices.

In terms of product highlights, Indivior said Sublocade continued its growth trajectory with increased net sales driven by increased penetration in the US health and justice systems.

US patient enrolments also showed significant growth, contributing to the positive performance.

Perseris net revenue meanwhile saw a 38% increase compared to the first quarter of 2023, reflecting increasing awareness across the US healthcare system.

Looking at financials, total net revenue increased 12% to $284m in the first quarter, with US net revenue growing 15% to $241m.

However, rest-of-world net revenue decreased 2% due to the timing of shipments and ongoing generic erosion of legacy products.

Gross margins remained strong at 84%, reflecting an improved product mix despite cost inflation.

Looking at its balance sheet and cash flow, Indivior reported a total of $356m in cash and investments at the end of the first quarter.

Cash used in operations primarily stemmed from litigation settlement payments, partially offset by income from operations.

The company said it was continuing to monitor principal risks, which remained consistent with those outlined in its 2023 annual report.

“Our first quarter results reflect continued double-digit top-line momentum led by Sublocade,” said chief executive officer Mark Crossley.

“The underlying demand for this transformative treatment for moderate-to-severe opioid use disorder (OUD) remains strong and our strategy to expand prescribing in the justice system is delivering excellent results.

“Sublocade’s reported growth was, however, adversely impacted by transitory items, including accelerating Medicaid patient disenrollments, a cyberattack on the largest US medical claims processor and abnormal trade destocking.”

Crossley said the company fully expected those items to resolve as the year progressed and, combined with the benefits of recent commercial investments behind Sublocade, it anticipated an acceleration in its top- and bottom-line growth over the rest of 2024, particularly in the second half.

“We therefore reconfirm our 2024 guidance, including Sublocade net revenue of $820m to $880m and approximately 300 basis points of margin expansion at the mid-points of our guidance range.

“Lastly, after receiving strong indications of support from our shareholders, we are confirming our intention to seek shareholder approval in May 2024 to facilitate a primary listing in the US while maintaining a secondary listing in the UK.”

At 0843 BST, shares in Indivior were down 6.87% at 1,410p.

Reporting by Josh White for Sharecast.com.