Indivior shares surge on US court ruling
Indivior shares soared over 32% in morning trade.
Shares in pharmaceuticals group Indivior rocketed after a US court imposed a preliminary injunction on a rival firm selling or importing a generic version of one of its key drugs.
The group said on Monday that the US District Court in New Jersey granted the restriction against Indian pharmaceutical company Dr Reddy’s Laboratories from selling its version of buprenorphine/naloxone sublingual film, used for the treatment of opioid addiction.
Indivior shares soared over 32% in morning trade following the update.
It marks a comeback for the stock, which was battered last week when Indivior warned that it will take a minimum 25 million US dollars hit following an “abrupt loss of market share” as a result of Dr Reddy’s selling the medicine.
Indivior said at the time that its full-year financial guidance is “no longer valid” and that it “cannot reliably provide” updated revenue and income guidance until the impact is better understood.
Neil Wilson, chief market analyst at Markets.com, said: “Today’s announcement is a positive but it amounts to only a temporary ban on Dr Reddy’s and management still won’t be able to provide any real clarity until later in the year.
“Betting on a court ruling is like tossing a coin, so it may be wise to treat this drug maker with some caution.”
It is not the first time the FTSE 250 firm, which specialises in drug addiction treatment, has been involved in a patent battle.
Earlier this year a US court ruling found that a medicine developed by its rival Alvogen, a copycat version of Suboxone, had not infringed Indivior’s patents.
Chief executive Shaun Thaxter said: “Protecting the integrity of our intellectual property is fundamental to our ability to deliver our vision that all patients around the world have access to evidence-based treatment for addiction and its co-occurring disorders.
“For more than 20 years, we have worked together with stakeholders to educate on the disease of opioid addiction, advocate for access to evidence-based treatment, and progress our pipeline of innovative treatments for substance use disorders.”