Indivior shares slump as it posts drop in Q1 profit

Shares in Indivior tumbled after the FTSE 250 speciality pharmaceuticals firm reported a drop in first-quarter profit.

Pre-tax profit fell to $86m (£58.6m) from $102m in the same period a year ago, while net income slid to $50m from $77m.

Operating profit slipped 12% to $101m while earnings per share fell to $7 from $11, but revenue grew 3% to $258m.

The company said US market growth so far this year has been in the mid-single digits, compared to the equivalent period last year, which was boosted by the impact of the Affordable Care Act, more commonly known as ‘Obamacare’.

Market share for Suboxone Film – which treats opioid dependence - was 60%, up just a touch from 59% in the first quarter of 2015, and total volume sold in the US was ahead of the same period last year.

Chief executive officer Shaun Thaxter said: “We had a good start to the year with Q1 numbers exceeding our plan which anticipated no material deterioration in the trading environment.

“In the US, generic tablet pricing began to experience some additional discounting but branded competitors had very limited impact although we continued to offer some tactical rebates in connection with formulary access for Suboxone Film.”

The company reaffirmed its guidance for 2016, saying it continues to expect net revenue of $945m to $975m and net income between $155m and $180m, excluding exceptional items and at constant currency.

Indivior said the guidance assumes no material change to current market conditions in the US, no disruption to US generic pricing, no generic film entry and limited impact of branded competition.

At 1225 BST, shares were down 10.6% to 143.73p.