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Home News Indivior report third quarter profit drop
NEWSIndivior report third quarter profit drop
By Ishen Patel -
31/10/2019
Indivior PLC (LON: INDV) have reported a third quarter profit fall, after their third quarter trading update was released Thursday morning.
Revenue hurt by the launch of a generic competitor to its opioid addiction treatment drug Suboxone Film.
The loss comes at an important time for those in the pharma industry as competitors such as RA Pharmaceuticals (NASDAQ: RARX) and Belgian firm UCB (EBR: UCB) recently completed a merger, placing their dominance in the market.
Additionally, British based Reckitt Benckiser Group Plc (LON: RB) have seen similar struggles to Indvior after they cut their full year forecastearlier this month.
The firm reported that net revenue had dropped 19% to $199 million from $245 million.
Additionally, the company posted a $56 million pretax profit for the three months ended September 30, 18% lower than the $68 million profit posted the year before.
Selling, General & Administrative expenses fell 21%, while research & development expenses fell 31% to $11 million from $16 million.
For the nine months ending September 30th, pretax profit fell 14% to $222 million, versus $257 million.
Net revenue was down 15% at $652 million from $768 million, which creates worries for investors and shareholders.
The US based firm have their operating headquarters in Virginia, and 2019 has represented a tough period for the medical supplier outside of trading figures.
The Federal Grand Jury in Virginia, charged Indivior for the for a number of charges including “” health care fraud, wire fraud, mail fraud, and conspiracy”.
The charges related to Indivior’s marketing, promotion, and safety claims around its addiction drug Suboxone – as well as overprescription of the drug by doctors.
At present, the US Department of Justice intends to recover $3 billion worth of forfeitures from Indivior.
“The company believes it has strong defences to the government’s charges and will vigorously defend itself. It is not possible to predict with any certainty the potential impact of this litigation on the group or to quantify the ultimate cost of a verdict or resolution,” said Indivior
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