Indivior stays on track in third quarter, awaits court decision
Indivior
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08:49 23/04/24
Tighter cost control from Indivior helped offset weaker pricing pressures on its sales of its Suboxone anti-opioid addiction drug in the third quarter.
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Revenue of $245m in the third quarter was down 11% on the same period last year, with sales in the nine months to 31 September of $768m that are down 7% year on year.
Suboxone Film made up the majority of revenue, with dip in market share to 50% in the quarter after the launch of a generic rival by Dr Reddy's in the second quarter that was subsequently blocked by a court injunction at the behest of Indivior. The case remains pending.
Indivior's newly launched monthly depot version of the treatment, Sublocade, generated $3m of revenue in the third quarter, up from $2m in the second. Management has previously guided to a full year target of $8-10m of Sublocade sales.
A third major product should be added to the roster in the fourth quarter, new schizophrenia drug Perseris. The company is holding back its full promotional launch, with a field force of 40 to 60 representatives, while it awaits confirmation of the outcome of its preliminary injunction against Dr Reddy's, with the Federal Circuit having last oral argument on the appeal on 4 October. The outcome of the PI appeal remains pending.
Net income rose 79% to $89m and earnings per share by 71% to 12 cents in the quarter.
The company has reaffirmed 2018 guidance of $990-1020m and net income of $230-255m, which in September was cut from the $290-320m given at the start of the year.
Net cash stood at $569m at the end of September, up $193m since the start of 2018.
Analysts at UBS said the results were ahead of consensus expectations. Overall, the analysts think stock will likely remain "in situ" until there is an outcome on the Reddy's litigation, "which we think should act as a positive catalyst".
"Beyond this, it is all about Sublocade (or perhaps new schizophrenia drug Perseris) starting to deliver as, with the Alvogen generic risk still in the background beyond Dr Reddy’s and pricing pressure slowly eating away at the Suboxone franchise the clock is ticking."