Indivior PLC (OTCPK:INVVY) Q3 2023 Earnings Conference Call November 9, 2023 8:00 AM ET

Company Participants

Mark Crossley - CEO

Ryan Preblick - CFO

Dr. Christian Heidbreder - Chief Scientific Officer

Jason Thompson - VP, IR

Conference Call Participants

James Vane-Tempest - Jefferies

Thibault Boutherin - Morgan Stanley

Max Herrmann - Stifel

Jason Thompson

Thanks, Sandra, and good morning, everyone, and welcome to our call to discuss our third quarter results. Before we begin, I need to remind you that today's comments include forward-looking statements, and that actual results may differ materially. Those factors that may cause actual results to differ are detailed on Slide 2 of our presentation, which is available on the Investor Relations portion of our website at Indivior.com. also, we will discuss adjusted financial measures. You can find a reconciliation of those measures to the reported amount in the appendix of the presentation.

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

Mark Crossley

Thank you, Jason, and good morning, and good afternoon, everyone, and thanks for joining us. With me today to discuss our third quarter are Ryan Preblick, our Chief Financial Officer, and Dr. Christian Heidbreder, our Chief Scientific Officer. For today’s call, I’ll provide an overview of the strategic progress, after which Ryan will detail our financial performance and our 2023 guidance, and then we’ll move to a question-and-answer period.

Turning to Slide 4, it was another quarter of strong double-digit topline performance. Led by SUBLOCADE, third quarter net revenues grew 17% year-over-year to $271 million. Adjusted operating profit of $60 million, which was up modestly versus the year ago quarter, reflects the incremental operating expenses we've absorbed from adding the opioid business, including launch costs for OPVEE this quarter. Based on our third quarter and year-to-date performance, we are confident that our teams will deliver another strong year of results in 2023, consistent with the attractive medium-term profitable growth framework we set out last December. Importantly, we've narrowed our full-year 2023 SUBLOCADE net revenue expectations to $610 million to $630 million, which is the upper half of our previous range. At the midpoint, this would represent a 52% increase versus 2022. As you may have also seen in our updated guidance included in our announcement, we have evaluated and decided to make incremental investments behind SUBLOCADE to fuel its growth. Our updated adjusted SG&A expectations for the full year reflect this. I'll cover these investments in more detail in a moment.