Indivior PLC's (LSE:INDV) stock tanked 23% in early trading after the drugmaker warned of an expected sharp revenue decline in 2025, despite a solid performance last year.
The company, which focuses on treatments for opioid addiction, expects revenue to drop 17% this year, hit by falling sales of Suboxone Film, an opioid addition treatment facing intense generic competition, and the discontinuation of Perseris, its schizophrenia drug.
In 2024, Indivior’s total revenue rose 9% to $1.19 billion, driven by a 20% increase in sales of Sublocade, its newer long-acting treatment for opioid use disorder.
However, competition in the US and funding challenges in the justice system, where many Sublocade prescriptions originate, are expected to stall growth in 2025.
To offset these headwinds, Indivior is cutting over $100 million in costs, with around $50 million reinvested in expanding its opioid treatment pipeline. Despite the near-term struggles, the company remains confident in Sublocade’s long-term potential.
In early trading, the shares were down 199p at 669p.