Indivior Half Year Financial Results Ahead of Plan – Full Year Guidance Raised07.29.2015 | PDF Version
Half Year Financial Highlights
- H1 net revenue at $517m (H1 2014: $574m) declined 10% versus prior year with strong market growth offset by lower market share and higher rebates, in connection with formulary access in the US, versus prior year and exchange. Net revenue at constant FX declined by 7%.
- H1 operating profit of $230m (H1 2014: $327m), reflected lower net revenues, and the expected higher operating costs as a standalone public company, including $5m exceptional costs arising from the establishment of Indivior PLC.
- H1 net income was $144m (H1 2014: $233m) after net financing costs of $31m (H1 2014: nil) and tax rate of 28% (H1 2014: 29%).
- Cash balance at half year of $523m. Net debt at half year $220m (vs. Year End 2014: $428m).
- The Board has approved an interim dividend of 3.2 cents per share.
Half Year Operating Highlights
- US market growth in H1 2015 was in low double digits.
- Suboxone Film market share was 59% (compared to 63.5% in H1 2014), marginally ahead of the end 2014 market share.
- New product pipeline continuing to progress well. Nasal Naloxone for opioid overdose rescue NDA filed, accepted and granted Priority Review by the FDA with response expected by late Q4 2015; ongoing Phase 3 trials of Buprenorphine Monthly Depot and Risperidone Monthly Depot; and IND for Arbaclofen Placarbil submitted to FDA.
- Operational separation from RB on track, with formal name change of operating companies in US, UK, Canada & Australia, and formal operational transfer of the Fine Chemical Plant.
- Full year guidance today raised to net revenue in a range of $935m to $965m (previously $850m-$880m) and net income of $185m to $210m (previously $130m-$155m) at constant exchange rates (versus 2014).
- The guidance recognises current market conditions in the US are continuing into H2, but prudent expectation is that our original assumption of loss of share in cash and Managed Medicaid in the face of significantly higher generic tablet discounts in the US is still likely to occur sometime in H2. In addition, it recognises Government mandated price decreases and switch to generics in Europe, and increasing legal expenses in the US associated with litigation.
- The Company will update further at Q3 results on November 3rd, 2015.
Comment by Shaun Thaxter, CEO of Indivior PLC
“Our performance this year to date has exceeded our plan, which anticipated a more challenging market environment beginning in the second quarter“ commented Shaun Thaxter, CEO of Indivior PLC. “US generic tablet pricing has not yet disrupted our market share whilst branded competitors had very limited impact although, as in the second half of last year, we continued to offer tactical rebates in connection with formulary access for Suboxone Film. We said in May that if the environment continued to be favourable we would have room to reassess our full-year guidance at the half year. Accordingly we are today raising our full-year guidance to Net Revenue in a range of $935m to $965m and Net Income of $185m to $210m at constant exchange. We will update further at Q3 results on November 3rd.“
“Indivior PLC is a company with a unique business model which is focused on empowering patients and striving to improve their quality of life by pioneering innovative, high-qualty, accessible and cost effective treatments,“ Shaun Thaxter continued. “I am delighted with the strong progress we have made towards realizing our vision and achieving our key strategic priorities for 2015; our Suboxone Film share of 59% in the US is slightly ahead of the exit share for 2014 and reinforces our confidence in the sustainability of Suboxone Film; the treatment market has grown in the US, with many new doctors certified. Our transformational pipeline of potential treatments for addiction is moving forward apace with our opioid overdose rescue medication submitted to the FDA for approval in May, just accepted and granted priority review by the FDA, our monthly depot of Buprenorphine (RBP-6000) in Phase 3 trials, our IND for Arbaclofen Placarbil for alcohol use disorders submitted in June and positive clinical efficacy and safety data from our Phase 3 trial of RBP-7000, the monthly risperidone depot, published in May. Our confidence in the medium-term opportunity for Indivior PLC continues to grow.“
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