Indivior PLC (LON:INDV) saw more than £500mln wiped from its market value this afternoon after a generic rival to its top-selling opioid treatment was launched in the US.
FTSE 250-listed Indivior has been trying to protect Suboxone for a while now, launching various claims and counter-claims against generic copycats which threaten its star asset.
Indian drugmaker Dr Reddy’s and Dutch pharma giant Mylan (NASDAQ:MYL) have both had their generic versions of Suboxone, a sub-lingual film designed to treat opioid addiction, approved by US regulators.
Analysts though it was unlikely that either would launch their copycats with various patent claims and litigation hanging over them, but Dr Reddy’s has done just that, in what’s called an ‘at risk’ launch.
“We are surprised by Dr. Reddy's decision to launch "at risk" given the ongoing litigation and associated significant risk to them of substantial economic damages if, as we believe, we eventually prevail in protecting the Suboxone Film patent estate,” said Indivior boss Shaun Thaxter.
Without all the details of Dr reddy’s market entry, Indivior said it was keeping its 2018 forecasts unchanged. It has warned in the past that if its claims are dismissed, it expects Suboxone to experience a “rapid and material loss of market share”.
Indivior shares slumped 22.8% to 381.6p.
12pm: RedstoneConnect sinks as chief executive steps down
RedstoneConnect PLC (LON:REDS) shares sank 8.6% to 100.5p in late-morning trading after its chief executive, Mark Braund said he was to step down.
The AIM-listed software group said Frank Beechinor, the current non-executive chairman, would assume the role of chief executive with effect from Monday, 18 June.
Meanwhile, shares in Record PLC (LON:REC) fell 2.5% to 45.4p as the currency manager reported a decline in full-year profit as its margins dropped, although its revenues increased slightly.
For the year ended 31 March 2018, the FTSE fledgling company said its revenue rose to £23.8mln from £22.9mln a year earlier, but pre-tax profit tax fell by 7% to £7.3mln from £7.8mln as its operating profit margin dropped to 31%, from 34%.
Elsewhere, FTSE 250-pharma company BTG PLC (LON:BTG) saw its shares drop 3.1% to 525p after an advisory committee told US regulators to reject a pre-market approval application for its severe emphysema treatment.
While the panel felt Elevair was safe for use, it wasn’t convinced by the product’s effectiveness or that the possible benefits outweighed the risks.
As a result, it has told the US Food and Drug Administration not to approve the treatment, which is also known as PneumRx Coils in Europe.
9.15am: Mobile Streams shares jump as it inks agreement to explore blockchain purchasing
Mobile Streams PLC (LON:MOS) saw its shares rise 3.1% to 2.4p after it signed an agreement with Electroneum to promote the use of ETN cryptocurrency, on their Mobilegaming service.
The mobile content retailer said it was exploring the possibility of using the blockchain protocol to deliver a trusted purchasing environment to its consumers.
Meanwhile, Velocity Composites PLC (LON:VEL) saw its shares rise 8% to 67.5p in early morning trading as it was awarded a supply contract with a new customer base in Europe.
The AIM-listed materials manufacturer said following the award manufacturing would commence with the finalisation of the Long Term Agreement between the parties, which will run through to December 2020, to be concluded shortly.
The group added that the work under the agreement could contribute up to US$6mln to the company’s revenues over the period.
In the blue-chips, Rolls Royce Holdings PLC (LON:RR.) shares jumped 11.4% to 984p as it once again maintained its full-year guidance despite saying that problems with its Trent 1000 engine, which has grounded some planes, could cost it an extra £100mln this year.
In a statement, the FTSE 100-listed group said it is sticking to guidance for this year's free cash flow to come in at about £450mln, give or take £100mln despite the extra cost.
Proactive news headlines:
KEFI Minerals PLC (LON:KEFI) is looking to raise a total of £5.5mln through a share placing and subscription which should entirely now fund its Tulu Kapi Gold Project in Ethiopia. The AIM-listed gold exploration and development company said it has conditionally raised £3mln through a placing of 120mln new ordinary shares at a price of 2.5p each to existing and new shareholders.
Sound Energy PLC (LON:SOU) told investors that it has identified and finalized the location for its proposed TE-9 exploration well. TE-9 will test the A1 exploration prospect in the Tendrara-Lakbir permit, Eastern Morocco.
Silence Therapeutics PLC (LON:SLN) is presenting data to an industry conference on its lead drug that suggests it is a "promising candidate" for the treatment of iron overload and anaemia. Researchers have been assessing its potential use in Beta-Thalassemia - a blood disorder that reduces the production of haemoglobin - and related ailments.
Orosur Mining Inc (LON:OMI) is carrying out a review of its operations at the San Gregorio gold mine in Uruguay.
Echo Energy PLC (LON:ECHO) has told investors that it is changing its drill plans in Argentina to accelerate the Fracción D asset. The company recently completed a successful well test on the CSo-85 well, which had been the subject of a work-over, and, it has now decided to substitute the fourth and final slot in the present Fracción C and Laguna de Los Capones drill programme with a new well at Fracción D.
Southend Airport owner Stobart Group Ltd (LON:STOB) has written to shareholders explaining why former chief Andrew Tinkler was sacked from his executive duties and the board yesterday. Tinkler has called for chairman Iain Ferguson to be replaced by Philip Day at the AGM on 6 July.
Live Company Group PLC (LON:LVCG) said its subsidiary, Brick Live International Limited (BLI), has entered into a new licence and content lease with two South Korean companies.
Falcon Media House Limited (LON:FAL) said it has raised £500,000 through the issue of convertible loan notes, with the funding conditional on the company proposing to noteholders that the conversion price be adjusted to 1.5p. The group said the resolution, if passed, will amend the maximum dilution possible should all notes be converted.
Sareum Holdings PLC (LON:SAR) announced that henceforth, WH Ireland Limited will act as its nominated adviser and Hybridan LLP will act as sole broker to the company.