Indivior shoots off to strong start as generic trial outcomes loom

Indivior got off to a solid first quarter as sales of its Suboxone film for heroin addiction remained resilient and it waited on the outcome of patent challenge trials with Dr Reddy's, Actavis and Par that are expected in the second quarter.

Net revenue grew 3% to $265m in the first three months of the year, primarily reflecting low double-digit percentage growth in the US, where it was "modestly" boosted by the impact of a regulatory change to allow GPs to treat up to 275 patients from 100 patients.

Chief executive Shaun Thaxter said it was a "good start", with first-quarter results in-line with management plans that assumed no material deterioration in the market environment, with Suboxone's market share remaining on average at 60% before at the end of the quarter falling to 59% due to the loss of a managed Medicaid account to generic competition.

He also said Indivior had made progress against key strategic priorities, with new drug applications for a monthly 'depot' dose of buprenorphine for the treatment of opioid use disorder on-track and expected to be filed in the second quarter along with an NDA for a monthly depot of risperidone for the treatment of schizophrenia for the fourth quarter.

While it awaits the result of the trials over its patents, the group said it discussions with the Department of Justice had continued about a possible resolution to its litigation investigation.

"The group cannot predict with any certainty whether it will reach ultimate resolution with the Department of Justice or any or all of the other parties, or the ultimate cost of resolving all of the matters."

Operating profit of grew 27% to $128m thanks to lower litigation and R&D costs, though the latter are expected to increase over the rest of the year.

There was cash of $729m in the bank at the end of the quarter, with net cash of $182m.

Analysts at RBC Capital Markets said the results were slightly ahead of expectations on revenues thanks to strong rest-of-the-world sales.

"With nothing material from litigation updates or the pipeline to speak of, we think the shares could react well today given recent weakness," they added.