Indivior lifts profits but promises last dividend for foreseeable future

Profits and sales from Indivior both fell by less than expected as the speciality pharmaceuticals business completed an encouraging first year as a public company since being demerged from Reckitt Benckiser.

Net revenue fell 9% to $1.01bn, at the upper range of its increased guidance from November, while net income declined 43% to $228m, exceeding guidance for at least $210m.

Earnings per share of 32 cents were also down 43%.

Having Indivior announce a larger second interim dividend of 9.5 cents per share, above what had been promised at demerger.

However, directors have decided not to pay further dividends in the foreseeable future as cash is focused on developing the pipeline of drugs to treat addictions.

Indivior is also awaiting a ruling in the second quarter of 2016 from its lawsuits against Actavis and Par over patents for Indivior's main product, Suboxone Film for heroin addiction.

Other trials scheduled further ahead, with six rival companies filing Abbreviated New Drug Application (ANDA) with the FDA to market generic Suboxone Film in the US.

Chief executive Shaun Thaxter said resolving these multiple ANDA challenges was a "critical focus", but recognised that "early certainty will benefit shareholders and the company".

Outside of this, he hailed the "significant strategic progress" made against objectives for the year: "The treatment market in the US grew by double digits, with many new doctors certified, and more patients in treatment."

Suboxone held up impressively in the face of the generic competition, with its market share remaining resilient at an average of 59% over the year.

To widen the portfolio, a potentially transformational product, a monthly slow-release 'depot' formulation of Buprenorphine to treat heroin addiction, is undergoing Phase 3 trials.

Other pipeline products include monthly Risperidone for schizophrenia, which is undergoing Phase III efficacy trials and continuing its long-term safety extension study, while trials begin for other products to treat heorin dependence and alcohol use disorder.