26th Sep 2018 16:55
LONDON (Alliance News) - FTSE 250-listed drugmaker Indivior PLC late Wednesday lowered its earnings guidance for 2018 due to toughening of market conditions.
Shares in Indivior closed down 16% at 215.00 pence each the back of the news.
The company, which produces opioid addiction treatment drugs, expects net revenue for 2018 in the range of USD990 million to USD1.02 billion, down from the previous guidance of USD1.13 billion to USD1.17 billion.
Net income is predicted to be between USD230 million to USD235 million, down from USD280 million to USD320 million.
The net income guidance still represents a rise from USD58 million the year before, but the net revenue guidance reflects a drop from USD1.09 billion.
The guidance reflects intensified competitive pressure in the Rest of World due to continued healthcare security measures and increased competition in Europe, as well as revised net revenue expectations for Suboclade opioid addiction injection at USD8.0 million to USD10 million, down from the earlier guidance of USD25 million to USD50 million.
The company also said it will record pretax savings of USD55 million from cost actions taken to streamline the business.
"In the near-term, we acknowledge that with respect to Sublocade we have substantially underestimated the lag time associated with the approval of medical benefit coverage of individual patients. While we have yet to see the expected inflection in net revenues, each of the key launch metrics that we have previously highlighted continues to improve. These include growing payor coverage (which now stands at over 77%), compressing the prescription journey timeline and generating increased healthcare provider awareness," said Chief Executive Officer Shaun Thaxter said.
Related Shares:
Indivior