Invidior: Drug maker ditches London for US
The London Stock Exchange suffered another blow on Monday after drug maker Invidior said it intends to abandon its London listing and focus on its primary listing in the US.
The firm said it had reviewed its listing structure and considered liquidity, the location of shareholders and red tape associated with its London listing.
Its exit comes after a slew of companies departed the UK capital’s exchange over the last few years.
Some 88 companies left last year, including Darktrace and Paddy Power-owner Flutter. Hopes of a blockbuster Shein IPO were dashed last week amid reports the Chinese fashion giant was eyeing up a move to Hong Kong instead.
Invidior has a market cap of just over £1bn and employs over 1,000 people worldwide. More than 80 per cent of its net revenue is generated from its US business.
The pharma group said on Monday that liquidity on Nasdaq “far outweighed” liquidity on the LSE, with the New York exchange accounting for 75 per cent of its trading volume as of late May.
Shares have fallen by more than a third over the past twelve months.
Russ Mould, investment director at AJ Bell, said: “The London Stock Exchange will be upset it is losing another big name. It’s another headwind for the exchange operator in trying to reinvigorate the UK stock market, and means the pressure is on to attract new names to the market and keep existing ones.”
Invidior Chair David Wheadon said: “We are pleased to announce this key milestone for Indivior following our evaluation period. A single primary listing on Nasdaq best reflects the profile of Indivior’s business.
“We appreciate the support received from shareholders for this initiative and look forward to capitalizing on the expected benefits of this move, including reductions in cost and complexity.”
Competition pressure
Invidior has faced pressure from inflation and increased competition in the opioid treatment market in recent years. It issued a profit warning last July that saw shares tank more than 30 per cent.
Donald Trump’s liberation day tariff announcement has caused major disruption to the pharmaceutical industry and to global exchanges.
Following news of a UK-US trade agreement, Invidior said it would help “secure the multinational supply chain” supporting the continued manufacture of pharma products in the US.
“This agreement allows Indivior to continue its work to make America healthy again, for a future of recovery from the opioid crisis in the US and around the world, with products made in America.”