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Indivior spikes as it reiterates full-year guidance; Sublocade sales pick up

It has been a rough year for Indivior, which has seen more than three-quarters of its value wiped away as generic competitors to its star Suboxone drug start to enter the market

heroin addict
Indivior wants Sublocade to offset the declining sales of Suboxone

Indivior PLC (LON:INDV) shares spiked early on Tuesday afternoon as the struggling UK drugmaker confirmed full-year guidance after a surprise pick-up in sales of its next-generation opioid addiction treatment.

Sublocade is a once-monthly injection that Indivior hopes will take over from Suboxone – the company’s star asset which is facing severe competition from generic rivals.

READ: Indivior slumps as US court lifts injunction against rival

The injection didn’t get off to the greatest starts though, with doctors reluctant to prescribe it due to what Indivior called “friction in the new distribution and reimbursement model”.

It had initially been expected to generate sales of around US$100mln this year, but the firm slashed its guidance last month to US$10mln. Now it expects annual sales will reach US$12mln.

Thanks to that, and assuming a copycat version of Suboxone doesn’t enter the market before the end of the year, Indivior is confident it will meet full-year guidance of between US$990-1,020mln in revenue and US$230-255mln of net income.

“With SUBLOCADE we believe we have a potentially transformational treatment for opioid dependence,” said chief executive Shaun Thaxter.

“The setbacks we have experienced this year will not impede our relentless search for better treatment outcomes for patients and better options for healthcare professionals.

“However, given the potential for a dramatically altered market, we are prepared to take the difficult but necessary steps to ensure the viability of the business and, above all else, our ability to deliver the potential of SUBLOCADE through a period of challenge.”

Shares rose 10% to 104.3p.

Quick facts: Indivior PLC

Price: 110.3 GBX

LSE:INDV
Market: LSE
Market Cap: £809.06 m
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