11th Feb 2015 08:12
LONDON (Alliance News) - Indivior PLC, which was spun-off from Reckitt Benckiser Group PLC last year, posted a lower pretax profit for 2014 due to generic competition in the US and price cuts in Europe hitting its revenue in the US and exceptional costs relating to the de-merger.
The FTSE 250-listed pharmaceutical firm said that its outlook for 2015 is "very uncertain as to the timing, extent and impact of tablet price erosion." It is guiding net income of between USD130 million to USD155 million for 2015, on revenue of USD850 million to USD880 million. It noted however that the outcome could be higher in a more positive environment, or lower in a "very adverse scenario."
Indivior posted a pretax profit of USD561 million, down from USD695 million a year before, as revenues fell to USD1.12 billion from USD1.22 billion, and it posted USD24 million in restructuring costs relating to its spin-off.
In the US revenues fell 10% as generic competitors came to market that challenged its abuse-deterrent opioid agonist Suboxone Film product. Indivior said that Suboxone Film had continued to "show resilience in customer loyalty" in the face of this competition, but warned that there will be "significant pressure" on the product's market share in 2015 from discounting.
Suboxone Film's market share fell to 58% at the end of 2014 from a 67% market share at the end of 2013.
In the rest of the world revenue fell 2%, hit by government austerity mandating pricing reductions and forced switching to generics in Europe.
The company said its priority in 2015 is preserving its Suboxone Film leadership position in the US, increasing focus on the growing opioid painkiller dependent patient population in Europe, developing its pipeline of products and expanding its business.
"We are confident that the medium-term opportunity for the Company grows more exciting every year," said Chief Executive Officer Shaun Thaxter in a statement.
Shares in Indivior are trading down 18.9% at 139.04 pence Wednesday morning, easily the worst performer in the FTSE 250.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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