A global pharmaceutical company focused on developing medicines to treat substance use disorders (SUD) and serious mental illnesses, Indivior (NASDAQ:INDV) reported its financial results Thursday for the first quarter of the year. For the three months ended March 31st, the Richmond, Virginia-headquartered company disclosed net revenue of $284 million, up by 12% from $253 million in the same period of 2023.

"Our first quarter results reflect continued double-digit top-line momentum led by SUBLOCADE (buprenorphine extended-release)," stated Indivior CEO Mark Crossley. “The underlying demand for this transformative treatment for moderate-to-severe opioid use disorder (OUD) remains strong and our strategy to expand prescribing in the justice system is delivering excellent results. SUBLOCADE's reported growth was, however, adversely impacted by transitory items, including accelerating Medicaid patient disenrollments, a cyberattack on the largest U.S. medical claims processor, and abnormal trade destocking. We fully expect these items to resolve as the year progresses." 

Crossley reconfirmed the company's previous 2024 guidance including SUBLOCADE net revenue of $820 million to $880 million and approximately 300 basis points of margin expansion at the mid-points of its guidance range.

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Q1 Key Takeaways

• Net income amounted to $47 million, versus net income of $44 million in the first quarter of 2023. 
• Operating profit was $65 million, compared to $57 million in the same period last year. 
• Cash and investment totaled $ 356 million at the end of the first quarter (including$27m restricted for self-insurance), primarily reflecting quarterly net cash outflows related to scheduled litigation settlement payments, shares repurchased and canceled, and taxes paid.
• U.S. net revenue increased 15% to $241 million from $209 million in the first quarter of 2023. Strong year-over-year SUBLOCADE volume growth primarily drove the net revenue increase. Pricing was not a material factor in revenue growth.
• Rest of world net revenue decreased by 2% to $43 million from the same period last year. 

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Canadian cannabis company Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) (OTCPK:XTXXF) its financial results reported Tuesday for the fourth quarter and the year ended Dec. 31, 2023.

For the fourth quarter of 2024, the British Columbia-based cannabis concentrates producer reported gross revenue of CA$9.1 million ($6.7 million), compared to CA$6.8 million in the same period of 2022.

“During 2023, Adastra experienced significant sales growth of $37.7 million, representing a 108% increase compared to the same period last year, and marking our third consecutive year of achieving record revenue," stated Lachlan McLeod, interim CEO of Adastra. "The increased demand for our in-house brand, Endgame Extracts, has been a key driver behind this success, evident in our continued success with numerous best-selling SKUs in B.C, Alberta, and Ontario according to Headset.”

Fiscal Year 2023 Summary 

• Net revenue amounted to CA$22.2 million, up 67% from CA$13.3 million in 2022.
• Record gross profit of CA$7.6 million for 2023, representing a 24% increase compared to CA6.1 million in 2022.
• Net loss was CA$3.54 million, up by 17% from the previous year.
• Loss from operations of CA$1.8 million, compared to CA$800,000 for 2022, an increase of 124% due to the company’s increased spending on marketing initiatives to increase brand awareness of the suite of products under the Endgame Extracts brand.
• Record cash provided by operating activities of CA$1.9 million compared to CA$900,000 in 2022 as the company closely managed cash flows during the year.
• As of Dec. 31, 2023, Adastra had a working capital deficiency of around CA$6 million and a deficit of CA$21.7 million.

Q4 2023 Financial Takeaways

• Gross revenues of CA$9.1 million in Q4 2023, compared to CA$6.8 million in the fourth quarter of 2022, representing an increase of 34%, due to an increase in throughput of the Langley Facility and increased deliveries to provincial distributors.
• Net loss and comprehensive loss of CA$1.5 million during, compared to CA$2.6 million during the third quarter of 2023, a decrease of 43% quarter over quarter.

“Looking ahead to 2024, we expect to continue this momentum and have already set new records, including receiving a record single purchase order of $1 million in March 2024," McLeod added. "Moreover, we’re committed to a renewed focus on cost-saving measures aimed at ensuring profitability. As we continue to grow, we aim to further strengthen our financial position and drive sustainable success.”

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A vertically-integrated cannabis company 4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF) reported its financial results for the fourth quarter and full year ended December 31, revealing quarterly revenue of $21 million, down 21% from the same period of 2022. For the three months ended December 31, the multi-state operator disclosed an Adjusted EBITDA of $2.5 million.

“Our growth strategy, particularly in Illinois with the imminent opening of our Matteson facility and two new stores, is expected to double our production capacity and significantly boost our revenue and profitability in the state," stated Andrew Thut, CEO of 4Front Ventures. "Additionally, we anticipate further growth in Massachusetts that is expected to accelerate starting in the second quarter, as we expand our wholesale channels and continue to benefit from investments in our cultivation facilities, adjustments made to our product lines, and an improved menu offering.”

Fiscal year 2023 Highlights

• Total revenue amounted to $97.4 million, compared to $107.7 million in 2022.
• Adjusted EBITDA was a gain of $10.1 million, versus adjusted EBITDA of $31.9 million last fiscal year.
• Gross profit was $45.9 million, which compares to gross profit of $51.4 million in the previous year.
• Net loss amounted to $91.6 million, versus a net loss of $46.9 million in 2022.
• As of December 31, 2023, 4Front had $3.4 million in cash and 47.5 million in related-party long-term debt, which has since been reduced by $23 million post quarterly, by converting $23 million of senior secured debt into common stock and reducing annual interest expense by approximately $3 million.

“Over the past year, we achieved substantial growth in our wholesale revenue, with a 75% increase in Illinois and 42% in Massachusetts. This growth is a testament to our capacity to deliver high-quality products at the right price,” Thut continued. “The Washington facilities enjoyed a significant revival, with flower revenue nearly doubling from the first to the last quarter. It’s noteworthy that these positive achievements helped to balance out a year fraught with headwinds, particularly in California, and in other competitive local environments as well. While these challenges were costly, they have ultimately paved the way for a more focused, streamlined, and profitable business. We have learned a great deal from our experiences, and our team is stronger and better prepared for the future as a result. With the advancement of our Matteson facility and our ongoing expansion into Illinois retail, I believe that 2024 and 2025 will truly showcase our ability to compete and win in battleground markets.”

Price Action 

4Front Ventures shares closes Monday market session 2.0% lower at $0.09 per share.

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