Up to 80% of Indivior’s (INDV) market share for its opioid addiction treatment is at immediate risk after a US court denied its appeal to stop Dr Reddy’s Laboratories (DRL) launching a generic rival.
The company is also bracing itself for an upcoming generic launch by drug manufacturer Alvogen Pine Brook.
Indivior has been trying to stop DRL from launching a generic version of its buprenorphine/naloxone sublingual film product Suboxone for several months.
However it appears to be running out of options to stop the launch, which could be as early as next week when its injunction is lifted.
We have covered the ongoing legal battles between Indivior and DRL in the past, including the latter's appeal win in November.
75% OF INDIVIOR’S VALUE WIPED OFF
In a last-ditch effort, Indivior plans to file an emergency motion with the US Court of Appeals for the Federal Circuit to prevent the launch as it awaits an appeal over whether DRL infringed its patent.
Shares in Indivior are down 12% to 99.5p this morning although this is just a footnote given that 75% of the company’s value has been wiped off this year.
Indivior's battle plan is now to boost the commercial success of its Sublocade opioid addiction treatment and schizophrenia treatment Perseris, cut its debt and operating costs and conserve cash.
If DRL launches its generic rival, Indivior is ready to counter with its own generic Suboxone film and could cancel research and development projects to reduce costs.
Numis analyst Paul Cuddon says Indivior’s decision to have an operating expense base of $440m, down from $460m, implies a ‘material’ operating loss in the year to 31 December 2019.
‘Maintaining sales and marketing investment could prove decisive in the launch trajectory for Sublocade where payer budgets could become more accommodating,’ comments Cuddon.
