Indivior share price dives in wake of US market competition
Shares prices in pharmaceuticals giant Indivior plummeted as much as 35 per cent in early morning trading after the firm scraped its full-year guidance in the wake of a growing US market rivalry.
The FTSE 250 UK company warned that its projections for 2018 are "no longer valid" as the addiction treatment specialist faces stiff competition from the launch of generic versions of its bestselling opioid addiction treatment in the US.
Indian firm Dr Reddy’s Laboratories and U.S.-based Mylan NV won approval last month from the Food and Drug Administration (FDA) to launch a generic version of Suboxone Film, which generates 80 percent of Indivior’s revenue.
Revenue could be hit by $25m (£18.8m) for the 2018 financial year, with the firm also expecting at least $50m in revenue being impacted from discounting in generic tablets.
Read more: Indivior edges lower as it loses market share in the US to generic rivals
Shaun Thaxter, chief executive of Indivior, said: "We are continuing to monitor US market developments to better gauge [Dr Reddy’s] launch impact."
Thaxter added: "We know that they are skilled in rapid distribution in quantity and, as such, there is a range of uncertainty around the amount of product they were able to ship before the temporary restraining order was granted by the court."
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Indivior, which develops opioid addiction treatments, warned that its level of discounting of generic tablets has now resulted in pricing of 75 to 80 per cent below its list price.