(Alliance News) - Indivior PLC shares jumped on Wednesday after it reported a swing to profit in 2021 and annual revenue moved closer to its eventual target of USD1 billion.
Indivior also said the board is considering an additional share listing in the US, given that 80% of its revenue is generated there. Such a move would provide "optionality to pursue a potential primary or sole US listing over the longer-term", the company said, and formal consultations with shareholders will start in the spring.
Indivior shares were trading up 11% to 252.80 pence each in London on Wednesday morning.
The Virginia, US-based pharmaceutical company reported it had swung to profit in 2021, with pretax profit of USD190 million, compared to a loss of USD173 million the year before. In the final quarter, pretax profit was USD39 million, turning from a loss of USD14 million a year ago.
Selling, general and administrative expenses had been cut by over a third, to USD431 million in 2021 from USD666 million in 2020.
Total annual net revenue grew by 22% year-on-year to USD791 million from USD647 million, with fourth quarter growth of 20% to USD222 million from USD185 million.
Indivior said this was primarily driven by Sublocade, following investment in its Organized Health Systems channel and increased new patient enrolments. The opioid addiction treatment brought in USD244 million in the year, up 88% from USD130 million in 2020.
Basic earnings per share for 2021 was 28 cents, swinging from a loss per share of 20 cents in the prior year. Indivior also boosted its year-end cash equivalents to USD1.1 billion, up from USD858 million at the end of 2020.
The company also suggested it was keeping an eye out for potential acquisition targets.
"With over USD1 billion in cash on our balance sheet, we have the financial strength and flexibility to pursue a balanced capital allocation strategy. Our primary focus remains on reinvesting in the business, but we also have the potential for additive inorganic growth opportunities and consideration of other value enhancement options," said Chief Executive Officer Mark Crossley.
Looking to 2022, the pharmaceuticals company expects to grow revenue for Sublocade to a range of USD360 million to USD400 million.
This will help boost the group's total revenue for the year to between USD840 million to USD900 million, also aided by relative market share stability for Suboxone film. It expects adjusted operating income to be "broadly similar" to the USD187 million seen in 2021.
The company is also hoping its Perseris treatment, an extended-released injection of risperidone for schizophrenia, will hasten its diversification and provide future growth opportunities beyond addiction treatment. It expects its revenue to grow around 74% on 2021 to a range of USD27 million to USD32 million.
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Indivior (INDV)