Annual Report and Financial Statements 2014 By fully understanding the challenges that INDIVIDUAL patients face, we aim to transform addiction from a global human crisis to a recognized and treated disease around the world, empowering patients to ENDEAVOR to take the first step towards changing their lives Our vision All patients around the world will have unrestricted access to quality treatment services for the chronic relapsing conditions and co-morbidities of addiction Strategic Report Financial Statements Case studies 1 Chairman’s Statement 62 Independent Auditors Report The case studies feature to the members of Indivior PLC 2 Chief Executive’s Statement real-life stories of people 67 Consolidated income statement directly affected by 6 Global context addiction as told in 68 Consolidated balance sheet 21 Operational detail their own words. 69 Consolidated statement 8 Dr Johnson Corporate Governance of changes in equity and Remuneration 11 Tony 70 Consolidated cash flow statement 12 Mark 32 Our Board of Directors 71 Notes to the Financial Statements 16 Dr Rubinstein 34 Our Executive Committee 93 Historical financial information 19 Karrie 36 Directors’ Report 94 Parent Company Independent 39 Chairman’s Statement Auditors’ Report to the members on Corporate Governance of Indivior PLC 41 Corporate Governance Report 96 Parent Company balance sheet 47 Directors’ Statement 97 Notes to the parent Company of Responsibilities Financial Statements 48 Directors’ Remuneration Report 101 Shareholder information Strategic Report Chairman’s Statement The addiction treatment revolution has only just started and that is why the future for Indivior is so exciting In the US where an office-based treatment On behalf of the Board and Shareholders, model has been adopted for treating opioid I thank them for their efforts so far, addiction, only a minority of people with particularly all the extra work required addiction are currently in treatment. to make the demerger happen. We must widen awareness and acceptance of treatment to help improve access. Finally, I welcome all our Shareholders to this new Company. I hope the future Indivior is a Company with a unique business excites you as much as it does your Board model which is focused on empowering and management team. We will work to patients and striving to improve their make it a rewarding future for Shareholders. quality of life by pioneering innovative, We have a clear dividend policy, adopted high-quality, accessible and cost-effective at the demerger, to pay out 40% of earnings treatment. Indivior’s people have a passion in 2015: following which the Board will to help addicted patients, and to enable review the dividend policy in the light of the those who can treat them. Company’s financial position and strategy. Welcome to Indivior PLC’s I am delighted that we have appointed Please join me, the Board and the first annual report. This remarkable a powerful Board of Directors with a wealth management in this exciting future. of relevant experience. I welcome all my Company was listed on December 23, Board colleagues and thank them for the Howard Pien 2014 following the Reckitt Benckiser hard work in getting Indivior launched Chairman Group plc (RB) demerger of its into independent life. I know the Company pharmaceutical business. We are will benefit enormously from their advice and oversight. grateful to RB, its Board and management team for their The Board, together with a Science and stewardship for the past 30 years, Policy Committee which the Board considers Opioid dependence and as essential for a pharmaceutical company, Suboxone® Treatment and for the foresight that now was has adopted best practice UK corporate Opioid dependence is a complex, long the right time for independence. governance models; Nomination and term medical condition, where regular Governance, Audit and Remuneration use of opioids (e.g prescription painkillers Indivior PLC (“Indivior” or “the Company”) Committees of the Board are in place. is a world leader in the treatment of opioid and heroin) causes changes to the brain addiction. That simple statement, however, Indivior is also fortunate in the quality, chemistry, which leads to dependence. does not give credit for the fact that this passion and commitment of its management With physical and behavioral components, Company has helped to create the team led by Shaun Thaxter, CEO, who was it resembles other chronic medical recognition of opioid addiction as a medical one of the pioneers of the business in the conditions or diseases such as diabetes condition rather than a criminal activity, US in 2003. Indivior people are remarkable and hypertension and, like them, expanding the availability of treatment for their passion, their can-do attitude, it can be treated. options beyond the clinical setting in the their innovative approach, and their Suboxone® contains buprenorphine and US and permitting patients more flexibility entrepreneurial mindset. naloxone. Buprenorphine is the primary to receive treatment in the privacy of a physician’s office. It is a remarkable story Our management team is incentivized active ingredient. By attaching to the same that is told throughout this annual report. to grow Indivior through the next phase receptors as other opioids, it can help to of its life, to build on the resilience of the suppress withdrawal symptoms and reduce However, the addiction treatment revolution existing business, to develop the exciting cravings. Naloxone is included to help has only just started and that is why the pipeline of new products, to expand the prevent misuse. If an opioid-dependent future for Indivior is so exciting. geographic reach of the treatment model person attempts to take Suboxone® other to new countries, and to deliver the than as prescribed, the naloxone is likely resulting value to Shareholders. to produce withdrawal signs and symptoms. Indivior Annual Report and Financial Statements 2014 1 Strategic Report Chief Executive’s Statement Our fundamental task is to shift attitudes about addiction from being a global human crisis to a recognized and treated disease All of us at Indivior PLC share a belief that addiction is a highly treatable medical condition. The fundamental task we share is to shift attitudes around the world towards addiction. Addiction is not about bad people doing bad things who deserve to be punished. It is about normal people, who have been exposed to and become dependent on opioid painkillers, alcohol or other addictive drugs and who risk being socially marginalized as a result. We believe these people deserve medical treatment. Shaun Thaxter Chief Executive Officer 2 Indivior Annual Report and Financial Statements 2014 Strategic Report Chief Executive’s Statement Putting patients first Indivior PLC is a specialty pharmaceutical Safety drives innovation too, for example in packaging. company. We lead the world in opioid addiction Every Suboxone® Film, our buprenorphine and naloxone product, is wrapped in its own child-resistant foil pouch treatment and the move to get it recognized so that children would have to overcome the packaging as a chronic medical condition. What drives to get to the medication. our crusade is that we put patients first. We believe patient safety is not just an obligation, it is our Quality, safety and compliance are embedded in our culture responsibility. Our Guiding Principles define our philosophy as well as our patient-centric business model. We know that and how we operate and we consciously live by them. we are working to help people and our heartfelt commitment They put patients at the center of decision-making and to improving their lives underpins everything we do. communications and we actively use them every day. Quality and compliance are at the core of everything we do Our commitment is long term We adhere to regulations determining product quality, This is how we have done business for the past 30 years patient safety and business standards. We have a robust and how we will continue to do so. As leaders in the field Quality Policy, Management System and Manual and of opioid dependence, we are not only distinguished by our all our systems are governed by appropriate policies. work in education and our analysis of abuse, misuse and But that is just our starting point. diversion, but by our sustained investment in the people, systems and resources needed to achieve that. We also have our own additional guidelines around how to develop our medicines, train our people and the level Our Clinical Liaisons support rather than sell of qualifications we require. Where there are no regulations Our Clinical Liaisons help to create solutions in the on training, we have our own in-house conditions to ensure communities they work in. Conscientious and dedicated, that our staff are highly qualified, trained and competent. their role is to educate people about the disease space, to promote safe treatment models, break down barriers Our Quality Patient Care program includes our scientifically and improve access to treatment. That is how we help or medically qualified Medical Science Treatment Advisor expand patient access and grow our business. (MSTA), who provide non-commercial medical education to healthcare professionals and other stakeholders worldwide. Our Clinical Liaisons work closely with prescribers to be sure that they have the resources and information Safety and vigilance are paramount necessary to appropriately assess risk of abuse and So how do we ensure we achieve patient and product address it if it becomes an issue. safety? Firstly, by designing safety and vigilance into our systems, along with the flexibility to respond to growth Our people make it work and legislative change. The objective of our Risk Evaluation Our commitment to quality, safety and compliance is and Mitigation Strategies (REMS) program is to mitigate risks embedded in our products, processes and pipeline. of accidental overdose, misuse, and abuse and to inform What truly sets us apart is our people and our shared belief prescribers, pharmacists, and patients of the serious that we improve lives.