Christian Glennie

Christian Glennie inquired about the criminal justice system (CJS) dynamics, asking if Q1 set a new base for that business and what might improve funding. He also asked for clarification on SUBLOCADE's Q1 pricing and destocking, and the expected success metrics for the new marketing campaign and label.

Answer

CEO Mark Crossley explained that CJS budget impacts hit in Q1 but expects quarter-over-quarter growth for the rest of the year. He detailed three potential funding improvements: budget reallocations, abatement funds, and Medicaid 1115 waivers, which are approved in 19 states covering over 60% of LAI volume. CFO Ryan Preblick confirmed mid-single-digit destocking for SUBLOCADE in Q1. Mark Crossley added that the success of the new marketing initiatives will ultimately be measured by net revenue and category growth, with positive early digital indicators.

Christian Glennie from Stifel inquired to what extent the 2025 SUBLOCADE guidance already reflects benefits from the anticipated label change and increased marketing spend. He also sought clarity on the expected 30-35% decline in the CJS channel and the company's capital allocation priorities.

Answer

CFO Ryan Preblick explained the guidance factors in current market dynamics and a return on the new investments, with benefits expected to ramp up in H2 2025, assuming the label update is approved. CEO Mark Crossley clarified the CJS decline is specific to SUBLOCADE due to funding pressures and a bit of expected competition. He reiterated that the near-term capital allocation focus is on reinvesting in SUBLOCADE and the pipeline, with no current plans for M&A or shareholder returns.

Christian Glennie sought to clarify if Organized Health Systems (OHS) typically allow co-prescribing or choose one product exclusively, asked about the redeployment of OpEx savings, and inquired about the timeline for OPVEE traction beyond BARDA contracts.

Answer

CEO Mark Crossley confirmed that OHS are typically open to both products, allowing physician choice. He stated that OpEx savings will be reinvested into SUBLOCADE patient and HCP awareness and activation, with more details to come in February. For OPVEE, he noted the company is focused on generating real-world evidence to overcome objections related to precipitated withdrawal before expecting a significant increase in orders from first responders.