Indivior shares tumble after firm loses patent case
Shares in pharmaceuticals group Indivior tumbled on Friday after the firm lost a patent case in the US that could enable rivals to better compete.
The FTSE 250 firm, which specialises in drug addiction treatment, said in a stock market announcement that a US court ruling found that medicines developed by its rivals have not infringed Indivior's patents.
The ruling, by the District Court of Delaware, means rival Dr Reddy's can make a generic version of Indivior's key Suboxone Film treatment, used to treat heroin addiction.
The company said that if the US Food and Drug Administration approves Dr Reddy's alternative treatment, it could lose up to 80% of its market share "within a matter of months".
Indivior shares collapsed more than 35% in morning trading to 262p.
Neil Wilson, senior market analyst at ETX Capital, said: "The company is facing a mammoth struggle. The company has previously warned that revenues and operating profits of the company will significantly decline.
"Indeed, it all hangs on this case as revenues are primarily derived from sales of the Suboxone Film."
Indivior added that it will "continue vigorously defending its intellectual property" and believes it has grounds to appeal against the ruling.