Indivior rallies as it plays rivals at their own game

Indivior shares jumped over 17 per cent today as the company decided to take on generic copies of its star drug Suboxone by launching a cheaper version.

The opioid treatment is facing challenges in the US where it is locked in a court battle with Dr Reddy’s Laboratories (DRL).

Last week Indivior won a case which will likely prevent the competitor from launching its Suboxone rival before the end of the financial year.

“As the leading provider of buprenorphine-based medication-assisted treatment for opioid dependence, Indivior has a responsibility to sustain our work on behalf of patients suffering from this condition,” chief executive Shaun Thaxter said.

Assuming the ruling holds, Indivior said it expects to meet its revenue guidance of $990m to $1.02bn, which was revised down in September from between $1.13bn and $1.17bn.

September’s downgrade hit the company’s shares by 16 per cent, compounding what had already been a bad year on the markets.

Shares clawed back some of this year’s losses, but at 111.7p are still well below highs of 496p in early June when DRL’s generic drug was first cleared.

The company said it would hit back at its challengers with its own generic version of Suboxone.

It also promised to scale back its reliance on the drug, which represents around 80 per cent of sales.

Indivior hopes Sublocade, its other opioid addiction drug which is expected to beat targets, and schizophrenia treatment Perseris, which is set to launch in February, will help take pressure off Suboxone.

“The setbacks we have experienced this year will not impede our relentless search for better treatment outcomes for patients and better options for healthcare professionals,” Thaxter said, adding it was ready to take difficult steps to ensure the business can survive.