Shares in opioid addiction specialist Indivior (INDV) fell by more than a tenth – again – on the back of these half-year numbers. The group withdrew its full-year guidance earlier in July after a competitor launched a cheaper copy of its drug Suboxone into the US market. Until it can quantify just how much of that drug was sold, Indivior says it's unable to provide investors with renewed annual guidance. It has, however, promised to do so no later than the third-quarter results, which are currently scheduled for 1 November 2018.
But Suboxone litigation isn’t Indivior's only problem. Sales of Sublocade – its new opioid addiction treatment – have also failed to gather momentum; it seems transferring patients onto the new drug remains a bureaucratic headache in the US. At a measly $2m (£1.5m), management admits initial sales fell below its “financial plan” but remains confident of the drug’s potential in the long term. So do analysts at Numis, although the brokerage admits the company faces a number of crucial events in the coming months, including reinstating guidance, a pending appeal with the Department of Justice and defending against another possible generic launch from rival group Alvogen. For now, Numis expects cash profits of $251m (£191m) for 2018, giving EPS of 18.1¢, compared with $416m and 36.1¢ in 2017.
| INDIVIOR (INDV) | ||||
| ORD PRICE: | 282.3p | MARKET VALUE: | £2.06bn | |
| TOUCH: | 282.3-282.9p | 12-MONTH HIGH: | 505p | LOW: 238p |
| DIVIDEND YIELD: | nil | PE RATIO: | 41 | |
| NET ASSET VALUE: | * | NET CASH: | $469m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017 | 553 | 219 | 21.0 | nil |
| 2018 | 524 | 189 | 22.0 | nil |
| % change | -5 | -14 | +5 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Negative shareholders' funds £1=$1.32 | ||||
