RICHMOND, Va. - Indivior PLC (NASDAQ:LSE: INDV), a global pharmaceutical company, has revised its financial outlook for the third quarter and full year of 2024, citing increased competition and other market factors. The company released preliminary Q3 2024 results today and updated its full-year 2024 guidance.
For Q3 2024, Indivior reported preliminary net revenue (NR) of $302 million to $309 million, marking a 13% increase at the midpoint compared to the same period in 2023. Specifically, SUBLOCADE, Indivior’s product for opioid use disorder (OUD), is expected to generate between $187 million and $192 million in net revenue, a 14% increase at the midpoint over Q3 2023.
However, the company has lowered its full-year 2024 SUBLOCADE NR forecast to $725 million to $745 million, which represents a 17% rise at the midpoint from FY 2023. This adjustment is due to a combination of factors, including quicker adoption of a competing long-acting injectable (LAI) product, variability in funding timing from certain Criminal Justice System (CJS) accounts, and decreased trade stocking.
Despite these challenges, Indivior's CEO, Mark Crossley, expressed confidence in SUBLOCADE’s market position, noting recent data that shows the product's share stabilizing and maintaining a leading position in clinics. The company remains committed to actions that will fuel SUBLOCADE's growth and support margins.
Additionally, the company anticipates OPVEE NR, another of its products, to be around $15 million for Q3 2024, driven by an $8 million order from the Biomedical Advanced Research and Development Authority (BARDA) in late September.
Looking ahead, Indivior has revised its FY 2024 net revenue guidance to $1,125 million to $1,165 million, which is a 5% increase at the midpoint from FY 2023. The company's peak net revenue goal for SUBLOCADE of more than $1.5 billion remains unchanged, though it no longer expects to reach a $1 billion net revenue run rate exiting 2025.
Indivior plans to present further details in a webcast scheduled for 8:00 a.m. U.S. Eastern today. The information in this article is based on a press release statement from Indivior PLC.
In other recent news, Indivior PLC has experienced several noteworthy developments. The U.S. Food and Drug Administration (FDA) has granted Priority Review for a Prior Approval Supplement (PAS) for SUBLOCADE®, a medication used in the treatment of opioid use disorder. This may allow the drug to be administered in alternative injection sites and introduce a rapid induction protocol, significantly improving treatment options.
Indivior has also secured an $8.7 million order from the Biomedical Advanced Research and Development Authority (BARDA) for OPVEE®, a medication designed to reverse opioid overdoses. This procurement is expected to enhance emergency response capabilities amid the ongoing opioid crisis.
Analysts have also weighed in on the company's prospects. Craig-Hallum reduced Indivior's stock price target from $24.00 to $20.00, maintaining its Buy rating. Meanwhile, Piper Sandler held an Overweight rating on the company's stock, emphasizing the long-term growth potential of Sublocade, Indivior's product for treating opioid addiction. Despite facing challenges such as Medicaid-related issues and new market competition, Indivior's management anticipates Sublocade to grow its net revenue by 25% year over year. These are recent developments investors should consider.
InvestingPro Insights
To complement Indivior's revised financial outlook, recent data from InvestingPro provides additional context for investors. Despite the challenges outlined in the company's Q3 2024 preliminary results, InvestingPro Tips highlight that Indivior's net income is expected to grow this year, and analysts predict the company will be profitable this year. This aligns with the company's projected revenue increase for FY 2024, albeit at a lower rate than previously anticipated.
The company's market capitalization stands at $1.03 billion, reflecting the market's current valuation of Indivior's future prospects. With a revenue of $1.15 billion over the last twelve months as of Q2 2024 and a revenue growth of 14.47% during the same period, Indivior demonstrates its ability to expand its top line, even in a competitive environment.
However, investors should note that Indivior's stock has taken a significant hit over the last six months, with a price total return of -53.66%. This decline likely reflects the market's reaction to the increased competition and revised guidance mentioned in the article.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Indivior, providing a deeper understanding of the company's financial health and market position.
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