Indivior sales and profits grow in third quarter

Indivior is confident of hitting its full year targets after a solid third quarter of sales and profits growth.

A day after receiving good news about its new opioid addiction treatment, the drug developer reported $275m of revenue for the three months to 30 September, up 3% on the same period last year or 2% at constant currency rates thanks to strong market growth in the US, partially offset by generic competition and lower wholesaler stocking activity.

Operating profits came in at $63m versus last year's losses of $121m that saw more R&D and legal expenses.

In the year to date, the FTSE 250 company has grown revenue 4% to $828m and operating profit to $308m from $78m last time.

Adjusted profits, excluding $25m of exceptional items in 2017 and $237m last time, were up 5% in the year to date to $216m.

There was net cash on the balance sheet of $322m, with $806m of cash in the bank.

For the full year, net revenue is expected to be in a range of $1.09-1.12bn and adjusted net income of $265-285m assuming no material changes to current market conditions, excluding exceptional items and at constant currency rates.

This guidance includes $40-60m of pre-launch investments for late stage pipeline assets.

The pipeline was boosted this week as an advisory panel to the US drug regulator recommended Indivior's monthly treatment for opioid use disorder.

With the Food & Drug Administration expected to approve RBP-6000 by 30 November, Indivior chief executive Shaun Thaxter said: "We are finalising our launch plans and are working closely with our third-party manufacturing partners to ensure appropriate delivery of product to enable our target launch in Q1 2018."

In September, the company also applied to the FDA for a new drug application submitted for RBP-7000, a monthly slow-release dose of risperidone for the treatment of schizophrenia.

With various legal and antitrust cases ongoing, provisions were cut by $25m to $217m, reflecting payment of a settlement amount to Amneal Pharmaceuticals, but its warning remained that a final cost may be "materially higher" than the provision.