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