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An awful year came to a head last November for Invidior shares, as the pharmaceuticals firm fell nearly 45% in a single session after it lost an appeals court ruling in the US, one that would allow Dr Reddy’s Laboratories Ltd to sell a generic version of Indivior’s all-important opioid treatment Suboxone Film.

By the end of 2018 the stock was trading at £1.12, well off of mid-June’s £4.98, all-time peak, and a whopping 72% lower than its £4.07 starting price.

The value-erasing bad news kept coming in 2019, as the US federal appeals court refused to rehear Indivior’s case against Dr Reddy’s Laboratories, wiping another 20% off the stock on February 5th. With Dr Reddy’s allowed to launch its rival product as soon as February 19th, the company is now filing a repeat motion to the US Supreme Courts. Indivior shares sit at a current trading price of £1.05.

Between those two upsetting updates came the company’s December statement. Indivior said it was aiming to grow sales of new drugs Sublocade and Perseris in order to counter the projected drop in Suboxone revenue, while at some point launching its own generic version of the latter treatment to compete with DRL et al.

Crucially is also said that it was on track to meet its full guidance, as long as its competitors didn’t start to sell the generic treatment before 2019 (they didn’t). Net revenue is expected between $990 million and $1.02 billion, while net income is forecast to come in between $230 million and $255 million. Likely more important will be its forecasts for the current financial year, specifically the extent of the hit to sales of Suboxone.

Indivior shares have a consensus rating of ‘Hold’ alongside an average target price of £2.61.

This article is brought to you in association with Spreadex. All opinions expressed in this article are from the author and do not necessarily represent the opinions of The Armchair Trader. You can find out more about Spreadex products and services here, or find more articles from Connor Campbell here.

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Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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