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I’m baffled how this has gone below £12.
🤦🏼♂️
I know no-one can answer this, but I ask myself how far can this poor sentiment take this?
£12 ? £11 ? £10 even over time ?
Reading further, it looks like the 'representative claim' has been thrown out,
still leaving the 'multi-party action' as a possible thorn in Indiv's side.
How much longer will this stuff continue. Maybe it's simply wearing down investors.
Shame.
Nice spike up (following the RNS)
Then dribbled down again. What's going on here?
Based on todays RNS filing, looks like this lawsuit got tossed by the court in favor of Indivior.
This isn’t really news insofar as it was a known
So Wirral Borough Council, in its capacity as administrator of a local authority pension scheme, is suing Indivior for losses arising from Indivior’s share price falling due to potentially dodgy dealings - thereby contributing to Indivior’s share price dropping further? Erm, can Indivior sue Wirral Borough Council for our losses arising from Wirral Borough Council suing it for its losses? Furthermore, will Wirral Borough Council please just focus on collecting the effing bins!
This time from Wirral Borough Council, against both Reckitt and Indivior. Possibly a reason for the recent SP collapse:
Reckitt Benckiser, Indivior, ask London court to throw out Suboxone lawsuit
November 20, 2023 at 03:18 pm
LONDON (Reuters) - Consumer goods giant Reckitt Benckiser and Indivior on Monday urged London's High Court to throw out a representative lawsuit over allegedly false marketing of opioid addiction treatment Suboxone.
London-listed drugmaker Indivior and Reckitt Benckiser, its parent until Indivior was spun off in 2014, are facing a claim brought on behalf of hundreds of investors potentially worth hundreds of millions of pounds.
Wirral Council in north-west England wants to bring a representative claim based on an alleged scheme to switch the market for Suboxone from tablets, which were about to lose patent protection in the U.S., to a sublingual film.
But Reckitt Benckiser and Indivior, which deny the allegations, want the representative case dismissed.
Wirral Council says that when Indivior was indicted in the U.S. in 2019, in one of the few corporate prosecutions related to the U.S. opioid addiction epidemic, the news wiped out over 550 million pounds ($685.9 million) of its market value.
It is seeking a declaration that Reckitt Benckiser and Indivior published false, misleading or incomplete information to the markets about the alleged scheme.
Investors could then bring their own "follow-on" damages lawsuits based on the court's findings, which the council says would be cheaper, less complicated and promote "shareholder redress and access to justice".
But Reckitt Benckiser and Indivior argue a representative lawsuit would just give claimants other than Wirral Council a "free ride" until liability is decided.
They also say Wirral Council and others have brought a separate lawsuit which would continue if the representative case is dismissed.
Indivior has agreed to pay out over $500 million this year alone to settle civil lawsuits brought by drug wholesalers, dozens of U.S. states and health plans in relation to Suboxone.
In 2020, the company also agreed to pay $600 million to resolve U.S. government allegations that it fraudulently promoted Suboxone.
Reckitt Benckiser had agreed to pay out $1.4 billion to resolve any potential criminal or civil liability in 2019.
Reckitt Benckiser's lawyers said on Monday that the settlement was reached without any admission of liability.
They’ve been buying 50K+ shares a day so far. So about $850,000 a day. At that rate, they will finish the buyback in 6 months. Wish they front loaded it and did more now at these prices.
Can't disagree with that BetterX. And the statement that accompanied the announcement was very bullish too. An attractive investment opportunity at current SP.
I was not expecting that very positive development.
At today's price that will result in a further approx. 6m shares being bought. This is about 4.3% of total equity.
The buyback starts Monday 20th November.
Private DMs over twitter my friend.
If we can take the discussion off this site, I’m happy to share details. Post an email address where I can contact you?
Given the relief rally in the stock today, the dumping is hopefully done…
Can you give a link or reference to that online discussion please ? Many thanks
I read some discussion online that INDV got sold off because several hedge fund managers blew up during this earnings season and had to cut their risk across the board. Many bought into INDV before earnings and the final lawsuit settlement and then turned around and had to dump the stock due to other big losses in their portfolio.
If true, this would explain the ongoing selloff from earnings report, which seems completely unwarranted.
A good time to average down and purchase some more then?
Perseris whilst not a significant contributor was identified on the call as something they were going to target (improved sales etc) next year. So, whilst the sales are flat, the board clearly see some mileage/ potential in it.
Opvee could be a game changer in the years to come. Will take a while to gain traction, but once it does, then INDV (and its LTH shareholders) will hopefully reap the rewards.
Sublocade is growing at 50% a year, and it’s already 60% of total revenue. The ROW revenue can’t fall fast enough to offset how fast Sublocade is growing….
Also, Perseris doesn’t really move the needle at all for total revenue. So I can’t see why it’s so important?
Just feels like people are selling first, asking questions later.
No, sorry corradus - I was just going to emphasise that Ryan Preblick CFO was sounding bullish on yr end at least hitting range (top end 630 I hope) and that the $1.5 billion target for sublocade going forward was a new metric (as far as I'm aware). But I either didn't hear or missed the target date for this to be achieved by.
Thanks mythyaar. Useful commentary IMO. Is there any missing from the end as it seems to finish mid-sentence?
Thanks for the observations ShearClass.
Do you mean suboxone when you said sublingual? Its decline was an inevitability now that sublocade is increasingly replacing it.
You also said no details on the Opvee launch but at the presentation at 1pm they were clear about it. It has launched and already secured a contract with Barda.
Some other take outs from that call that probably weren't too well received. They are strengthening their sales teams to promote both sublocade and perseris. Cost of sales is high and increasing, will impact profits.
Perseris as you say, is flatlining - have management taken their eye off the ball or is it not going to be as successful a product as they had hoped it would? The clear strategy going forward is to promote and develop both sublocade and perseris. They need to do far better with perseris to satisfy their future ambitions. It's important that INDV are not regarded as a "one drug" company - so the perseris message was probably quite damaging for investor confidence.
Some other messages - they want to grow sublocade to over 1.5 billion p.a - not sure timescales were given but maybe 2-3 years? Current FY guidance on sublocade is $610m to $630m. It goes without saying that to ensure no further erosion of investor confidence, they need to be nearer the $630m mark.
Other takeouts - developing a pipeline of approx 5 products, AELIS AEF0117 being the most furthest developed. $774m of cash - obviously c£350m of that required for latest legal settlement. They have also acquired a manufacturing operation/ site in N Carolina for the production of perseris and sublocade.
The market is probably regarding INDV as a wait and see company, and if it can deliver on its ambitions on sublocade whilst maintaining a reasonable cost base, and show some improvements wrt perseris and get some more OPVEE contracts, they may well return. But for now, its jam tomorrow and that's probably where the negative market sentiment is coming from, combined with the "will there be any more shocks"?
Ryan Preblick (CFO) stated that
I suspect it's due to a multitude of factors;
- Sublingual revenues seeing a rapid decline YoY, offsetting Sublocade increases
- Below expectations performance of Perseris
- No detail on Opvee launch / revenue expectations
- Market digesting the balance sheet impact of the massive final settlement & not liking what it sees
Ultimately, operating profit is running at ~$225m PA, what we don't know is how much of that is related to sublingual. If revenues continue to decline there as expected, then without a major Opvee launch the top line growth will stall.
Essentially things are in the balance, however sentiment has turned negative due to the above factors. Downtrend support sits at ~£11.80 as far as I see it.
Anyone understand why the earnings report made the stock sell off? Baffling
Any thoughts on this would be appreciated
I wonder if it’s due to USD strengthening….USD bottomed in July and is up 7-8% against most major currencies since then.
If you look at the numbers presented in the settlement PR today, Sublocade revenue growth remains strong but overall revenue growth has slowed down. Which means they’ve lost revenue somewhere outside of Sublocade. And operating profit is barely above Q3 2022. I hope this is due to the expenses involved with ramping up OPVEE for Q4.
They had a good chance to score something significantly lower than what they just paid out based on precedent and the history of antitrust charges similar to what they were being charged with. I’m disappointed they didn’t score something lower relative to the remaining initial provision, but I guess we can finally move on at least.