Salute e Benessere
Indivior Provides Business Update; Conference Call at 8:00 AM U.S. EDT
The Group will immediately cease all sales and marketing activities related to PERSERIS. The Group believes this action is in the best interests of shareholders due to the highly competitive market and impending changes that are expected to intensify payor management in the treatment category in which PERSERIS participates. Analysis of forthcoming changes suggests that there is no longer a path forward for PERSERIS that is financially viable. Indivior will continue to supply PERSERIS for the foreseeable future to avoid disruption to patient care but will no longer deploy a dedicated sales force. As a result, we expect to reduce headcount by approximately 130 employees. Indivior does not anticipate material impacts on its other marketed products because of this decision.
Total expected charges related to this action are expected to be approximately $65m , of which approximately $20m are expected to be cash related to severance and termination of certain agreements. These charges will be recognized in the second and third quarters and excluded from adjusted earnings. Ongoing annual operating expense savings are expected to be approximately $50m , with $20m expected to be realized in H2 2024. The impact of this decision on FY 2024 guidance is included in the updated guidance set out below.
The Group is providing the below preliminary expectations for key NR drivers for Q2 2024.
Continued transitory patient treatment disruptions from ongoing Medicaid disenrollments that accelerated at the end of the quarter have disproportionately impacted SUBLOCADE. Combined with lower-than-expected stocking levels in key channels and longer-than-expected activation times with new criminal justice system accounts, SUBLOCADE NR was lower than expected in the second quarter.
OPVEE NR in the second quarter was immaterial (< $1m ). The OPVEE experience program continues to increase trial among target customers and user feedback remains overwhelmingly positive. Expected adoption is, however, lagging expectations. The Group continues to update standing orders and grant funding for all opioid reversal medications. As a result, the Group expects that OPVEE NR in FY 2024 will be driven predominantly by fulfilling the first delivery of product under the 10-year contract with BARDA ( ~$8m ).
Considering the above factors and the cessation of PERSERIS sales and marketing, the Group is updating FY 2024 guidance as set out below. The Group continues to expect solid adjusted operating income growth and adjusted operating margin expansion at the midpoint of approximately 100 basis points versus FY 2023. Beyond 2024, the Group will no longer separately report PERSERIS NR.
The Group remains confident that given the scale of the U.S. opioid epidemic, which is now being driven by misuse of fentanyl and other synthetic opioids, its opportunity to help patients and deliver value for shareholders remains intact. The unique profile of SUBLOCADE's paradigm-shifting treatment gives the Group confidence in delivering on its stated NR targets for SUBLOCADE: exiting 2025 at a $1 billion NR run-rate and achieving greater than $1.5 billion in peak annual NR.
On July 8, 2024 , Indivior Inc. and Indivior Solutions Inc. reached an agreement via mediation with Blue Cross Blue Shield of Massachusetts , Inc., Health Care Service Corp., Blue Cross and Blue Shield of Florida , Inc., Molina Healthcare, Inc., Aetna, Inc., and certain of their affiliates (collectively, the "Plaintiffs") to resolve consolidated antitrust litigation proceedings in Roanoke County Circuit Court. These actions had been pending since 2020. The agreement will terminate the trial that was scheduled to begin on July 15, 2024 .
As part of the agreement with the plaintiffs, Indivior will pay $85 million and will take a charge of $85 million in the second quarter, which will be excluded from adjusted earnings. Payment will be funded from Indivior's existing cash balance.
Indivior will host a presentation via live webcast at 1:00 p.m. London time ( 8:00 a.m. U.S. Eastern) today The webcast event can be accessed on the "Investors" section of the Group's website at www.indivior.com before the event begins.
Participants may access the event telephonically to ask a question by registering with the following link:
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This press release contains certain statements that are forward-looking. Forward-looking statements include, among other things, statements regarding financial guidance for 2024, including sales expectations for SUBLOCADE, PERSERIS, and OPVEE, expected growth in adjusted operating income and expected margin expansion; expected medium term margin expansion and cash flow generation; peak net revenue goals for SUBLOCADE and OPVEE, and a $1 billion net revenue run rate for SUBLOCADE by the end of 2025; our expectation that we will continue to grow and increase shareholder value; our expectation that cessation of PERSERIS marketing efforts will not impact sales of our other products; expected costs and timing of costs, and related expense savings, from no longer marketing PERSERIS; our expectation that the Court will approve the settlement with the end payors; and other statements containing the words "believe," "anticipate," "plan," "expect," "intend," "estimate," "forecast," "strategy," "target," "guidance," "outlook," "potential," "project," "priority," "may," "will," "should," "would," "could," "can," "outlook," "guidance," the negatives thereof, and variations thereon and similar expressions. By their nature, such forward-looking statements involve risks and uncertainties as they relate to events or circumstances that may or may not occur in the future.
Actual results may differ materially from those expressed or implied in these forward-looking statements due to a number of factors, including: lower than expected future sales of our other products; increased impacts from competition; failure to achieve market acceptance of OPVEE; the possibility that the Court will not approve the settlement, the possibility that the Court will require changes to the settlement prior to approving it, potential delays in obtaining Court approval of the settlement; and those factors described in Indivior's Annual Report on Form 20-F for the fiscal year 2023 and its other filings with the U.S. Securities and Exchange Commission.
We have based the forward-looking statements in this press release on our current expectations and beliefs concerning future events. Forward-looking statements contained in this press release apply only at the date of this press release, and we undertake no obligation publicly to update or revise any forward-looking statement, whether due to new information, future developments or otherwise.
Indivior is a global pharmaceutical company working to help change patients' lives by developing medicines to treat substance use disorders (SUD) and serious mental illnesses. Our vision is that all patients around the world will have access to evidence-based treatment for the chronic conditions and co-occurring disorders of SUD. Indivior is dedicated to transforming SUD from a global human crisis to a recognized and treated chronic disease. Building on its global portfolio of OUD treatments, Indivior has a pipeline of product candidates designed to both expand on its heritage in this category and potentially address other chronic conditions and co-occurring disorders of SUD, including alcohol use disorder and cannabis use disorder. Headquartered in the United States in Richmond, VA , Indivior employs more than 1,100 individuals globally and its portfolio of products is available in 37 countries worldwide. Visit www.indivior.com to learn more. Connect with Indivior on LinkedIn by visiting www.linkedin.com/company/indivior .
This release is being made by Kathryn Hudson , Company Secretary Indivior PLC.
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