Indivior PLC (NASDAQ:INDV) Q4 2023 Earnings Conference Call February 22, 2024 8:00 AM ET

Company Participants

Jason Thompson - VP, IR

Mark Crossley - CEO

Christian Heidbreder - Chief Scientific Officer

Ryan Preblick - CFO

Conference Call Participants

Thibault Boutherin - Morgan Stanley

Max Herrmann - Stifel

Operator

Good day, and thank you for standing by. Welcome to the Indivior 2023 Full Year Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Jason Thompson. Please go ahead.

Jason Thompson

Thanks, Evan, and good morning, 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 here on Slide 2. We also may refer to non-GAAP measures, the reconciliations for which may be found in the appendix to our presentation that is 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 and good afternoon, everyone. Thanks for joining us to discuss Indivior's fourth quarter and full year results. I'll begin with some opening remarks and a review of our growth strategy. Christian will then provide an update on our R&D priorities, following which Ryan will detail our financial performance and our 2024 guidance. Lastly, I'll provide some preliminary thoughts on the process we're initiating to consult on a potential primary U.S. listing in the summer of 2024.

2023 was another year of strong execution and performance by our team. Led by SUBLOCADE, our total net revenue increased 21% to approximately $1.1 billion and adjusted operating profit increased 27% to $269 million. This was our third consecutive year of double-digit top line performance and even after absorbing the incremental costs of the Opiant business and strategic growth investments behind SUBLOCADE, adjusted operating margins increased for the full year. We also made excellent progress against our strategic priorities to create a durable, addiction-focused franchise capable of delivering consistent value-creation for shareholders. I'll highlight the key milestones we achieved in 2023 in a moment.

Looking ahead to 2024, we expect another year of strong net revenue growth led by SUBLOCADE. Taking the midpoint of our guidance, $850 million of SUBLOCADE net revenue implies 35% year-over-year growth, marking another major step towards our target of greater than $1.5 million in peak net revenue. This in turn supports the Group's expectations of fiscal year 2024 of delivering 18% overall net revenue growth and approximately 300 basis points of operating margin expansion, again both taken from the midpoints of our guidance range. Importantly, both our performance in 2023 and our outlook for 2024 are in line with the medium-term profitable growth framework that we committed to at our Capital Markets Day in December 2022.