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(Alliance News) - Indivior PLC on Monday said it has reached an agreement to settle a US multi-district Suboxone litigation case, forking out USD385 million in the process.
Indivior shares rose 6.5% to 1,607.42 pence each in London on Monday morning, among the best FTSE 250 performers.
The litigation was centred on the claim that the pharmaceutical company stymied generic competition for the opioid addiction treatment Suboxone, in order to preserve its dominance.
Indivior will pay USD385 million and book a charge of USD228 million in the third quarter, which will be excluded from adjusted earnings.
"This charge represents the additional amount above the current remaining provision of USD157 million for the antitrust multi-district litigation, which reflects the previously announced settlement agreements with the states and end payors. The agreement will become final once approved by the court. Payment of the USD385 million is expected to be made in November 2023 and funded from Indivior's existing cash," the company said.
The settlement marks the end of the multi-district litigation, once approved by the United States District Court for the Eastern District of Pennsylvania. A trial, which was set to begin this time next week, has been cancelled.
Chief Executive Officer Mark Crossley: "We are pleased to achieve this settlement to conclude this legacy multi-district antitrust matter. The resolution of this litigation, which was filed over a decade ago, provides greater certainty for all Indivior stakeholders and allows us to continue focusing on our important work for patients suffering from opioid use disorder and mental health illnesses around the world."
Indivior was formerly part of Reckitt Benckiser Group PLC, before being spun out in late 2014.
Indivior also set out third-quarter and full-year guidance. It predicts net revenue between USD268 million and USD273 million for the third quarter, which at the mid-point, would be a 17% year-on-year increase.
It expects to swing to a reported operating loss between USD178 million and USD188 million for the third quarter, from a profit of USD56 million. Adjusted operating profit is to range from USD55 million to USD65 million, an outcome which ranges from a roughly 5.2% fall to a 12% rise from USD58 million a year prior.
By Eric Cunha, Alliance News news editor
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