Indivior warns on sales, profit due to U.S. issues
Indivior PLC (INDV.LN) warned on Wednesday that its previous guidance is no longer valid, citing negative market developments in the U.S.
The pharmaceutical company previously guided for revenue of between $1.13 billion and $1.17 billion and net income in the range of $280 million and $320 million in 2018.
The company said the entry of Dr. Reddy’s Laboratories Ltd.’s (500124.BY) generic competition to its Suboxone opioid-addiction treatment resulted in a loss of market share, impacting revenue. Indivior obtained a temporary restraining order on the product, but said enough generic product was sold to affect earnings.
Indivior said discounting of generic tablets had also impacted profit. As a result of an unfavorable impact on its sales mix, net revenue is lower than expected, it said, with a minimum negative net revenue impact of $50 million.
Sales of its new Sublocade treatment is progressing less rapidly than expected, the company said. This is due to "friction in the new distribution and reimbursement model, which is having an impact on physician willingness to prescribe at higher levels," Indivior said.
As a result, the company said it sees Sublocade revenue in the range of $25 million to $50 million, which is $50 million lower than previous expectations. Indivior said it is still confident in its peak sales target of more than $1 billion in annual revenue.
The company said it is targeting cost-saving opportunities, with an initial goal of saving $25 million in 2018.
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