- Decline projected for 2025 profit
- Increased competition bites
- Maintains medium-term sales target
Opioid addiction treatment specialist Indivior (INDV) appears to be getting into some bad habits of its own. In a full year trading update on Thursday (20 Feb), the company slashed its 2025 outlook, sending the shares spiralling down by around a fifth to 681p.
This comes on top of a warning in July 2024 when the company reset 2024 profit expectations by 15% and announced 130 job cuts related to the discontinuation of its schizophrenia drug Perseris.
Over the last year the shares have more than halved, and they sit significantly below life highs around £24 set in 2018.
FALL IN 2025 SALES AND PROFIT
Indivior has slashed 2025 guidance and now expects full year revenue to fall by nearly a fifth at the midpoint of the $955 million to $1.02 billion range.
Adjusted operating profit could fall by 27% at the top of the guidance range and as much as 40% in the worst-case scenario.
The company laid the blame on increased competition in the US from generic drug companies including a fifth new entrant which will result in an accelerated market share decline for its Suboxone Film treatment, with sales expected to more than halve.
Competition is also hotting up for the company’s lead treatment Sublocade while funding challenges in the US Justice system remain. Consequently, net sales are of Sublocade now anticipated to be flat compared with 2024 at the midpoint of the range.
COMPETITION SCREW TIGHTENING
In response to competition, Indivior has applied to the US regulator to change Sublocade’s label so that it can be injected in more areas of the body such as the thigh and buttock, making it easier to use.
On 12 February the company revealed that while the regulator does not have any outstanding issues with the label change, a final review has been delayed.
Despite these challenges the company reiterated its medium-term guidance for Sublocade to achieve net sales of more than $1.5 billion. In 2024 net sales increased 20% to $756 million.
Chief executive Mark Crossley said: ‘Looking past FY 2025, we remain confident that Indivior is well positioned to drive profitable growth and shareholder value creation, and we are resolute in our focus on delivering on our key strategic objective.’
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