Shares in Indivior PLC plunged on Thursday after the firm warned a competitor product was eating away at the firm’s revenue.
As a result, the Richmond, Virginia-based specialty pharmaceuticals company lowered financial 202 and 2025 guidance.
Chief Executive Mark Crossley said: ‘We are seeing faster than expected initial adoption of the competitive product to Sublocade. This dynamic, together with greater variability in the timing of funding among Criminal Justice System customers, as well as incremental trade stocking pressure, has resulted in net revenue below our expectations set out in July.’
Sublocade is a treatment of moderate to severe opioid use disorder.
Indivior now expects third quarter Sublocade net revenue between $187 to $192 million. For the financial year, it predicts net revenue of $725 million to $745 million.
In July, the firm had predicted Sublocade full-year revenue of between $765 to $805 million.
Peak Sublocade revenue is still expected of more than $1.5 billion but Indivior no longer expects a run rate of $1 billion exiting 2025.
Group net revenue for the full-year is seen between $1.13 to $1.17 billion, down from $1.15 to $1.22 billion before.
Indivior expects full-year adjusted operating between $260 to $280 million compared with $285 to $320 million previously.
In response, shares in Indivior closed 19% lower at 583.00 pence each in London on Thursday.
The group said it is actively seeking efficiencies to fuel Sublocade growth and support margins.
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