Indivior cost cuts help boost profits; warns of 'imminent' risk from copycat products

Writer, Stock Market Wire
Thursday, February 14, 2019 - 09:09

Indivior reported Thursday a rise in profits as cost cuts helped bolster performance even as revenues slipped amid a series of market challenges. The company warned, however, of an 'imminent' risk to performance from the launch of generic rivals to the company's opioid addition treatments.

For the 12 months to 31 December, a reduction in costs helped boost operating profits to $292m from $193m a year earlier.

Net revenue fell 8% $1,005m, owing to share loss in the U.S. market growth for the company's opioid addiction treatment, Suboxone film, and targeted rebating as well as mix impact from growth in government channels like Medicaid.

On adjusted basis, operating profits fell 18% to $332m from a year earlier.

The results come as the company's battles on many front to prevent rivals launching copycat products has faced setbacks.

The company on Wednesday said a U.S. court had denied its appeal against a decision that would lift a ban preventing rival Dr. Reddy's Laboratories from selling a generic version of the company's opioid addiction treatment.

But the company has turned to a number of measures to counter the near-term impact to net revenue that is expected to result from the 'at-risk' launch of generic versions of Suboxone film.

Central to those plans is the commercial success of Sublocade and Perseris. 'The overriding objectives of the contingency plan are to provide for the commercial success of Sublocade and Perseris while ensuring a minimum cash balance of $250m to remain in compliance with the group's debt covenants,' the company said. Sublocade net revenues were $12m, including $7m in fourth quarter 2018. The commercial launch of Perseris would take place the week of February 18, 2019 with a field force of 50 representatives, the company said. The outlook for 2019, however, was merky at best. But the company said it expected Sublocade net revenue of $50m to $70m and operating expenses of approximately $440m to $460m, excluding exceptional items. 'Given uncertainties surrounding how the U.S. market for both Suboxone Film and generic alternatives will ultimately develop, Indivior is unable to provide 2019 net revenue and net income guidance at this time.'

At 9:09am: (LON:INDV) Indivior Plc share price was +1.9p at 110.45p


Related content

Reckitt Benckiser responds to US indictment of Indivior

Reckitt Benckiser Group confirmed that it had set aside a provision for legal costs related to Indivior, a former unit of the company.

Reckitt Benckiser...

Wed, 10/04/2019 - 13:12


Indivior faces series of charges over fraudulent activity in US

Indivior was charged by US authorities over a series of criminal offences including mail, wire and health fraud. The company denied the allegations, citing they...

Wed, 10/04/2019 - 08:03


Indivior presents data to help tackle opioid abuse

Indivior presented data over the weekend to help the healthcare community and others understand the challenges faced by patients with opioid use disorder and potential...

Mon, 08/04/2019 - 07:57


Indivior presents opioid addiction treatment study findings at Florida gathering

Indivior said it had presented data from two studies evaluating efficacy and long-term safety of a once-monthly injection of a treatment of moderate-to-severe opioid use...

Fri, 05/04/2019 - 13:45


Indivior launches injectable schizophrenia treatment in US

Indivior said it had launched in the US a new injectable treatment for schizophrenia.

The once-monthly treatment, Perseris, used an extended-release delivery system to form...

Wed, 27/02/2019 - 13:18