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Indivior posts $156m loss

Last year saw the arrival of a long-awaited legal resolution with the US Department of Justice
February 18, 2021

 

  • Materially de-risked business, management said
  • Up to $60m could be wiped off FY sales if coronavirus rules are sustained into the second half
IC TIP: Hold

Pharma group Indivior (INDV), which specialises in opioid addiction treatment drugs, was knocked into the red last year by legal expenses tied to a long-awaited resolution with America’s Department of Justice. Management said that the resolution had “materially de-risked” the business.

Total net revenues dropped almost a fifth to $647m for the 12 months ending December as sales for the group’s Sublocade product were offset by its older Suboxone Film product losing share.

Chief executive Mark Crossley called the results “solid” in light of the ongoing pandemic and said that “[a]ccelerating the growth of Sublocade remains the biggest potential driver of value creation”.

The group anticipates a base case scenario of net revenues reaching $625m in 2021 with Sublocade revenue of $185-210m. But if coronavirus restrictions continue into the second half, Indivior reckons up to $60m could be wiped off full-year sales. 

For now, hold at 128p.

Last IC view: Hold, 139p, 31 Jul 2020

INDIVIOR (INDV)   
ORD PRICE:128pMARKET VALUE:£ 943m
TOUCH:128.1-128.5p12-MONTH HIGH:40pLOW: 149p
DIVIDEND YIELD:nilPE RATIO:na
NET ASSET VALUE:112¢NET DEBT:97.8%
Year to 31 DecTurnover ($bn)Pre-tax profit ($m)Earnings per share (¢)Dividend per share (¢)
20161.198.05nil
20171.11378nil
20181.027838nil
20190.818018nil
20200.6-173-20nil
% change-18---
Ex-div:na   
Payment:na