Indivior PLC (LSE:INDV) received a sharp downgrade from investment bank Stifel, cutting its price target from 2,100p to 1,400p, following the company’s second profit warning of 2024.
Stifel cites rising competition from rival drug Brixadi as a key reason for lowering estimates and slashing earnings forecasts by more than 20%.
Despite these challenges, the bank retains a "buy" rating, pointing to Indivior’s strong cash flow and belief that its key opioid addiction treatment, Sublocade, will maintain a significant market share.
Indivior's stock has fallen 52% in the year to date as it struggles with the rapid uptake of Brixadi, which has outperformed expectations in its first year. It is currently changing hands for 574.5p.
However, Stifel remains confident in Sublocade’s long-term potential, highlighting its superior monthly dosing compared to Brixadi.