Indivior PLC (LON:INDV) chief executive Shaun Thaxter believes low-cost copycat competition to its main drug should become “less relevant to our long-term prospects” following the launch of a new, long acting replacement.
The past six months have been taken up with a legal rear-guard against firms hoping to launch a generic version of Suboxone, which is used to treat addiction.
Success for the challengers could wipe out a good proportion of the Indivior’s revenue stream.
Luckily, the company is almost in a position to cede this ground with the introduction of Sublocade, which is a monthly injection for addicts.
Schizophrenia drug too
This, and a treatment schizophrenia, should progressively allow the drug developer to replace the revenues lost to the cheap generics.
“It's still early days in the Sublocade launch and, while we have had to manage some expected logistical complexities, we have been very encouraged by initial patient and physician enthusiasm, as well as by the pace of payor coverage,” said CEO Thaxter.
The update came alongside first-quarter results, which revealed net revenues fell 4% to US$255mln, giving operating profit of US$116mln, down from US$128mln a year ago.
The numbers were in line with expectations, Indivior said, with the top and bottom-line declines reflecting the market “dynamics” for the mainstay product Suboxone Film.
Full-year guidance was “reconfirmed” with net revenue expected in the range of US$1.13bn to US$1.170bn, giving net income of as much as US$320mln.