Indivior full-year profit hit by litigation charge

Drug maker Indivior reported a drop in full-year pre-tax profit as it took a hit from a one-off litigation charge.

For the year to the end of December, pre-tax profit fell to $98m from $285m the year before as it booked a $220m charge in the third quarter due to investigative and litigation matters related to Suboxone Film in the US.

Still, net revenue was up 4% to $1.06bn and adjusted operating profit stripping out the litigation charge was up 3% on the year to $387m.

Indivior said it expects full-year 2017 net revenue of between $1.05bn and $1.08bn and net income in a range of $200m-$220m excluding exceptionals and at constant exchange rates, assuming no material change to current market conditions in the US.

The guidance also reflects a strategic decision to reinvest an additional $40m-$60m in driving future organic growth priorities.

Chief executive officer Shaun Thaxter said: "Indivior had a strong second year as a public company. We outperformed our financial plan for the year and we made significant strategic progress against our objectives. The treatment market in the US grew by high single digits, with many new doctors certified, and more patients in treatment.

Suboxone Film share of 61% in the US demonstrated the resilience of our core business in the face a highly competitive market featuring multiple generic and branded competitors. This resilience was underlined by our ANDA trial success in June against Actavis and Par; we retain belief in the strength of the IP on Suboxone Film, which will be tested again this year.”

At 0840 GMT, the shares were down 12% to 324.40p.