Indivior PLC (OTCPK:INVVY) Q2 2023 Earnings Conference Call July 27, 2023 8:00 AM ET

Company Participants

Jason Thompson - Vice President of Investor Relations

Mark Crossley - Chief Executive Officer

Christian Heidbreder - Chief Scientific Officer

Ryan Preblick - Chief Financial Officer

Conference Call Participants

James Vane-Tempest - Jefferies

Max Herrmann - Stifel

Paul Cuddon - Numis Securities

Thibault Boutherin - Morgan Stanley

Karl Burns - Northland Capital Markets

Edward Thomason - Liberum

Peter Testa - One Investments

Jason Thompson

Good day everyone. Before we begin, I need to remind everyone that on today's call, we may make forward-looking statements that are subject to risks and uncertainties, and that actual results may differ materially. We list the factors that may cause our results to be materially different on Slide 2 of our presentation. We also may refer to non-GAAP measures, the reconciliations for which may be found in the appendix of this presentation and also at the back of our published press release. These items are now posted on our website at indivior.com.

I'll now turn the call over to Mark Crossley, our CEO.

Mark Crossley

Thank you, Jason, and good morning, good afternoon, everyone and thanks for joining to discuss our half year results. I'll start with some opening remarks, review our progress against our strategic priorities, Christian will then provide a scientific update and then Ryan will wrap it up with details on our financial performance and our updated guidance before heading on to Q&A session.

Turning to the key messages, it was another strong quarter of execution by the entire Indivior team, which keeps us on track to deliver the attractive medium-term growth profile we set out at our Capital Markets Day last December. Recall this framework contemplates double digit net revenue, CAGR and positive operating leverage.

Looking first at the financials, our second quarter results were above our expectations, powered by another very good performance by SUBLOCADE. Total second quarter net revenue of $276 million and adjusted operating profit of $71 million grew by 25% and 18% respectively versus the same period last year.

On a half year basis, we were able to maintain our adjusted operating margin despite the incremental operating expenses from the Opiant acquisition. What stood out most to me about our performance was the solid contribution from all of the growth levers of our business. SUBLOCADE year-over-year growth of 58% in the quarter is certainly the headliner, but we also saw an encouraging acceleration in net revenue from PERSERIS. And on a constant currency basis we delivered a fourth consecutive quarter of year-over-year growth in the rest of world, driven by new products including SUBLOCADE, which is now delivering double digit quarterly net revenue outside the United States.