10th Oct 2024 19:30
(Alliance News) - Shares in Indivior PLC plunged on Thursday after the firm warned a competitor product was eating away at the firm's revenue.
As a result, the Richmond, Virginia-based specialty pharmaceuticals company lowered financial 202 and 2025 guidance.
Chief Executive Mark Crossley said: "We are seeing faster than expected initial adoption of the competitive product to Sublocade. This dynamic, together with greater variability in the timing of funding among Criminal Justice System customers, as well as incremental trade stocking pressure, has resulted in net revenue below our expectations set out in July."
Sublocade is a treatment of moderate to severe opioid use disorder.
Indivior now expects third quarter Sublocade net revenue between USD187 to USD192 million. For the financial year, it predicts net revenue of USD725 million to USD745 million.
In July, the firm had predicted Sublocade full-year revenue of between USD765 to USD805 million.
Peak Sublocade revenue is still expected of more than USD1.5 billion but Indivior no longer expects a run rate of USD1 billion exiting 2025.
Group net revenue for the full-year is seen between USD1.13 to USD1.17 billion, down from USD1.15 to USD1.22 billion before.
Indivior expects full-year adjusted operating between USD260 to USD280 million compared with USD285 to USD320 million previously.
In response, shares in Indivior closed 19% lower at 583.00 pence each in London on Thursday.
The group said it is actively seeking efficiencies to fuel Sublocade growth and support margins.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.