Revenue and profit from addiction treatment group Indivior (INCV) both fell less than expected in the group's first full-year results since de-merging from Reckitt Benckiser (RB.) last year. A second half-year dividend of 9.5ȼ (6.6p) was also higher than expected. But investors were probably less thrilled to see that dividend being scrapped for the "foreseeable future".
However, the better than expected results seem to have been enough to restore a little investor faith, and the share price rose 18 per cent on results day, before slipping back. This reflected the fact that results were ahead of guidance, but may also have been driven by the markets interpreting a shift of balance in Indivior's favour surrounding ongoing legal battles concerning the company's one and only product, Suboxone Film.
Recent share price weakness has reflected the market pricing a 'worse-case scenario' outcome for a series of trials contesting generic versions of Suboxone, which have tried to muscle their way onto the market before its patent expiration date. But the company's announcement that a couple of lawsuits may be coming to an end sooner than expected, and prior to potential generic launches, triggered speculation that the outcome here could be better than expected.
Analysts at Stifel are anticipating a further decrease in adjusted EPS to 27.2ȼ in 2016.
| INDIVIOR (INDV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 174.2p | MARKET VALUE: | £1.25bn | |
| TOUCH: | 173.8p-174.2p | 12-MONTH HIGH: | 271p | LOW: 127p |
| DIVIDEND YIELD: | 5% | PE RATIO: | 8 | |
| NET ASSET VALUE: | * | NET DEBT: | $174m | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2011** | 1.25 | 872 | na | nil |
| 2012** | 1.34 | 884 | na | nil |
| 2013 | 1.22 | 695 | 68 | nil |
| 2014 | 1.12 | 561 | 56 | nil |
| 2015 | 1.01 | 285 | 32 | 12.7 |
| % change | -9 | -49 | -43 | - |
Ex-div: 16 Jun Payment: 29 Jul *Negative shareholders' funds **Pre-IPO figures £1=$1.44 | ||||
