Tuesday, Indivior Plc (NASDAQ:INDV) announced a downward revision of its profit forecast for the year while deciding to cease sales of its schizophrenia drug Perseris.

The company also plans to reduce its workforce by about 130 jobs. In a business update, Indivior outlined its expectations for the second quarter and full-year 2024.

Related: Addiction Treatment Company, Indivior, Reports 12% YoY Growth For First Quarter Led By Sublocade Sales.

The company adjusted its second-quarter net revenue expectations and FY 2024 guidance, citing continued adverse market conditions affecting Sublocade's near-term growth and the initial commercial uptake of Opvee.

At the mid-point, Indivior anticipates a 25% year-over-year net revenue growth for Sublocade and a 12% year-over-year increase in adjusted operating income for fiscal 2024.

The company forecasts fiscal 2024 revenue of $1.15 billion-$1.215 billion, versus prior guidance of $1.24 billion -$1.33 billion and a consensus of $1.25 billion.

In 2024, Sublocade sales are anticipated to be $765 million to $805 million (prior guidance of $820 million to $880 million), Perseris sales of $27 million to $33 million (prior guidance of $55 million to $65 million), and Opvee sales of $9 million to $14 million versus prior guidance of $15 million to $25 million.

Sublocade is indicated for moderate to severe opioid use disorder, and Opvee is the first nalmefene hydrochloride nasal spray for the emergency treatment of opioid overdose for patients 12 years and above.

Net revenue is expected to be $295 million-$303 million in the second quarter, versus a consensus of $301.65 million, including Sublocade sales of $188 million to $196 million and Perseris sales of $10 million to $13 million.

Despite the challenges, Indivior reaffirmed its medium-term financial outlook, projecting double-digit net revenue growth and operating margin expansion. This optimism is based on achieving its intermediate and peak net revenue goals for Sublocade and meeting peak expectations for Opvee.

However, the company discontinued sales and marketing efforts for Perseris due to increased payor management, negatively impacting its financial viability.

Indivior has also reached a settlement agreement with end payor plaintiffs in the Health Care Services Corp (HCSC) consolidated cases, agreeing to resolve the litigation for $85 million.

As part of its strategic shift, Indivior lowered its adjusted operating profit forecast to $285 million to $320 million, down from the previous range of $330 million to $380 million.

CEO Mark Crossley commented, "Despite positive early performance trends at the start of the second quarter, Sublocade net revenue has continued to be impacted more than we expected by a combination of transitory factors, primarily the elimination of COVID emergency measures related to automatic Medicaid coverage renewals. Furthermore, as we look to the second half of the year, the U.S. government has extended renewal allowances for certain States, which will further delay the annualization of this significant headwind."

Price Action: INDV shares are down 36.8% at $9.69 at last check Tuesday.

Image: Unsplash/ Volodymyr Hryshchenko

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