Indivior PLC (LON:INDV) reported a 39% decline in profits for 2019 and said it is likely to fall into losses this year as its key opioid dependency treatment continues to lose ground to generic competition and it invests in marketing new treatments.
Revenues came in at US$785mln for last year, down 22%, primarily due to the erosion of market share for its historical leading product, Suboxone Film for opioid addiction. This was in line with the guidance given by the company in October.
This was only slightly offset by revenue from its new longer-lasting Sublocade treatment, which is given via injection of a 'depot' under the skin, of US$72mln compared to US$12mln a year earlier, together with a revenue contribution from Indivior’s own generic version of Suboxone.
Adjusted operating profit fell 39% to US$202mln while reported post-tax profit fell 51% to US$134m.
The year ended with just over US$1bn cash in the bank, with net cash at US$821mln.
Chief executive Shaun Thaxter said 2019 was “a challenging year” but said 2020 “is shaping up to be a pivotal year” as the company continues its direct-to-consumer campaign to support Sublocade and launches Perseris, an injected 'depot' to treat schizophrenia.
For 2020, assuming Suboxone’s market share is eroded in line with industry expectations, net revenue is expected to fall by up to a third to US$525-585mln, of which Sublocade is expected to contribute US$150-200mln and Perseris US$15-25mln.
This is seen leading to a net loss of US$50-20mln excluding exceptional items and at constant exchange rates.
Indivior also still carries a provision of US$438m relating to US Department of Justice litigation matters, for which it is trying to reach a settlement.