Indivior slumps after profit warning, drug discontinuation

Investing.com - Indivior stock slumped Tuesday after the U.K. pharmaceutical company issued a 2024 profit warning, and announced that it was discontinuing the sales of its schizophrenia drug Perseris.

At 07:00 ET (11:00 GMT), Indivior shares fell over 36% to 751.25p, to its lowest price this year. 

Indivior cited unfavorable market conditions impacting its top-selling opioid addiction treatment, with the Sublocade drug facing intense competition from the launch of a rival, as well as the end of pandemic-relief measures that has led to loss of coverage in the United States for some people enrolled in government-backed Medicaid plans.

The drugmaker said it now expects to generate $1.150-$1.215 billion in revenues for 2024, down from earlier guidance of $1.240-$1.330 billion, with adjusted operating profits penciled in at $285-$320 million, compared with previous projections of $330-$380 million.

Indivior also said it was taking "decisive action that we believe is in the best interest of shareholders" by discontinuing sales of Perseris.

However, “longer term, Indivior still expects to exit 2025 at a $1bn net revenue run-rate and achieve peak sales >$1.5b,” Jefferies said.

The investment bank maintained a ‘buy’ rating on Indivior, with a 2,390p price target.