Indivior (INDV) lost as much as three-quarters of its market value on the day a grand jury in the Western District of Virginia issued an indictment relating to a federal criminal investigation initiated by the US Department of Justice (DOJ) back in December 2013. The indictment includes 28 felony counts, including one count of conspiracy to commit mail, wire and healthcare fraud, one count of healthcare fraud, four counts of mail fraud and 22 counts of wire fraud. The allegations – which Indivior strongly deny – are based on actions that occurred "almost exclusively" before Indivior was demerged from Reckitt Benckiser (RB.) at the end of 2014. Shares in the consumer goods giant also fell by as much as 6 per cent on the news.
Indivior said allegations that it fraudulently marketed its opioid addiction treatment Suboxone Film are "unsupported" both by "the facts and the law", adding that certain "key" allegations have been "contradicted" by US government scientific agencies, the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention. One such allegation regards the paediatric safety profile of Suboxone Film, which Indivior claimed was safer than its previous tablet form. Suboxone film is sold in unit-dose packaging, making it less susceptible to tampering, while the tablets were sold in traditional bottles. While the DoJ is questioning whether the new version of the product was indeed any safer, Indivior said government agencies "repeatedly confirmed the safety benefits of unit-dose packaging".
The company said it can "successfully defend itself" – in a case that could take up to a year to be heard – but admitted an adverse verdict "may have a material adverse effect on the company, its financial position and outlook". Analysts at Numis described the turn of events as "surprising" given Indivior had been working towards a settlement – one that had previously been provided for financially. The same goes for Reckitt Benckiser. In response, the consumer group said the indictment was not against Reckitt and that it did not have "additional or new information in respect of this matter". The group recognised a provision (denominated in dollars) of $400m (£313m) in relation to the case in its 2018 accounts.
