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.
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.