27th Jul 2023 11:48
(Alliance News) - Indivior PLC on Thursday celebrated a strong recent six months and second quarter that brough increased profit and revenue, boosting its optimism for the rest of the year.
The stock however was down 3.9% at 1,805.00 pence in London on Tuesday, though is up 17% over the past 12 months.
The Virginia-headquartered pharmaceutical company, which specialises in treating addiction and mental illness, said pretax profit for the first half of 2023 increased 13% to USD120 million from USD106 million the year before. This included USD62 million in the second quarter, up 6.9% from USD58 million in 2022.
Indivior said net revenue for the half year increased 24% to USD529 million from USD428 million. US net revenue increased 26% to USD435 million from USD344 million, which Indivior said was thanks to strong year-on-year volume growth for opioid addiction treatment Sublocade and schizophrenia drug Perseris.
"This has been another strong quarter of financial results and delivery against our strategic priorities, and I would like to thank our teams for their unwavering dedication to our patients," said Chief Executive Officer Mark Crossley. "The growth of Sublocade continues as we further increased the depth of prescribing in organised health systems, in line with our strategy, and reached a major milestone of over 100,000 US Sublocade patients.
Rest of world net revenue increased 12% at actual exchange rates to USD94 million from USD84 million, with "unfavourable foreign currency translation" and "ongoing competitive pressure on legacy tablet products" partially offsetting positive contributions from new products.
Additionally, Indivior's selling, general and administrative expenses increased 22% to USD264 million from USD217 million, including USD22 million related to the acquisition of Opiant Pharmaceuticals Inc in March. Research and development expenses more than doubled to USD59 million from USD23 million.
The company completed its Nasdaq listing in June. Crossley said Indivior was "excited" by the news, "which we believe will provide us with a broadened platform to increase awareness of Indivior in the US and the substance use disorder disease space."
Indivior updated its financial guidance for all of 2023 in large part to reflect increased net revenue expectations for Sublocade, to between USD590 million and 630 million, up from from the USD550 to 600 million range predicted in April.
Indivior now expects group net revenue between USD1.03 and USD1.09 billion, up from the USD970 million to USD1.04 billion previously expected and from USD901 million in 2022. It also anticipates adjusted operating profit to surpass the USD212 million reached in 2022, having expected it to be slightly lower in April.
Crossley said: "Our progress in the first six months and positive expectations for the remainder of the year support an increase to our guidance for 2023, and further reinforce our confidence in our attractive medium-term profitable growth aspirations."
By Emma Curzon, Alliance News reporter
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