Indivior swings into profit
By James Hester
12:46, 29 April 2021
Indivior reported an 18% rise in first-quarter net revenue on Thursday, with strong growth from its opiate-addiction treatments and painkillers.
The US-headquartered pharmaceutical firm, which has its primary listing in the UK, said it had achieved earnings of $80m (£57.35m) in the first quarter versus a $163m loss for the same period in 2020.
An 18% jump in net revenue to $180m was primarily attributed to a higher contribution from its SUBLOCADE drug, which is used to treat adults suffering from addiction to opioid drugs, as well as growth from its opiate painkiller buprenorphine. Indivior also said its opiate addiction treatment SUBOXONE had seen relative market-share stability in the US.
"We have seen an encouraging start in FY 2021 with growth in net revenue, operating profit and cash from execution against our strategic priorities. Despite the ongoing impacts of COVID-19, SUBLOCADE injection achieved solid net revenue growth both on a sequential and year-over-year basis, and we expanded our Organised Health Systems platform to build the foundation for future growth,” said CEO Mark Crossley.
Revenue surge
Reported operating profit of $57m versus a $189m loss in the year-ago period reflected both higher net revenue and lower expenses, principally related to the direct-to-consumer advertising campaign for SUBLOCADE in the first quarter of 2020 as well as lower legal costs.
Net income of $80m includes an exceptional tax benefit of $36m recognised in relation to development credits for SUBLOCADE.
US net revenue increased 25% to $131m while rest-of-world net revenue rose by just 2%.
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Brightening outlook
Results for the second half of the year were expected to benefit from the rapid roll-out of coronavirus vaccines across the US.
“Looking ahead, we are seeing healthcare restrictions in the US begin to ease from the rapid pace of Covid-19 vaccinations, which supports our expectation of increased in-person interactions with healthcare practitioners in the second half of the year. As such, we are reiterating our FY 2021 base case guidance," added Crossley.
Indivior said it continued to anticipate long-term US market growth to be sustained in the high single-digit to low double-digit percentage range due to increased overall public awareness of the opioid epidemic and approved treatments, together with regulatory and legislative actions that have expanded opioid-use disorder treatment funding.
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