Late last year we advised readers to offload shares in addiction specialist Indivior (INDV) as the group faced down numerous threats to Suboxone, its patented product designed to help wean addicts off heroin, and battled to move new drugs through clinical trials. Twelve months on, events have swung in Indivior's favour, putting the group in a better position for the future.
First-half net revenues grew as market share improved, and recent legislation to widen access to medication-assisted addiction treatment in the US should help this trend continue. The group also received a positive ruling in a patent litigation case against US companies Actavis and Par, when the courts decided both groups would be violating Indivior's existing exclusivity rights by launching competitor products to Suboxone. There are also clinical updates due in the next few months on several late-stage new drug trials.
Chief executive Shaun Thaxter says the group is "ahead of plan" at the half-way stage, and has upgraded guidance for full-year revenues to a range of $1bn-$1.03bn (previously $945m-$975m).
Reflecting ongoing investment in research and development, as well as legal expenses, analysts at Numis expect EPS of 24.3ȼ for the year ending December 2016, on earnings before interest and tax of $288m, compared with 33.6ȼ for 2015.
| INDIVIOR (INDV) | ||||
|---|---|---|---|---|
| ORD PRICE: | 306p | MARKET VALUE: | £2.21bn | |
| TOUCH: | 306-307p | 12-MONTH HIGH: | 315p | LOW: 127p |
| DIVIDEND YIELD: | 2.3%* | PE RATIO: | 15 | |
| NET ASSET VALUE: | ** | NET DEBT: | $5m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2015 | 517 | 199 | 20.0 | 3.2 |
| 2016 | 531 | 172 | 15.0 | 0.0 |
| % change | +3 | -14 | -25 | - |
Ex-div:na Payment:na *Includes a second interim dividend of 9.5ȼ paid on 29 Jul **Negative shareholder funds £1 = $1.32 | ||||
