The Lemon Fool

http://www.investegate.co.uk/indivior-p ... 00094858X/

The market seemed disappointed. Maybe because of:

The Company recorded a charge of $220m in the third quarter of 2016 for the investigative and antitrust litigation matters disclosed under Litigation Update on pages 8-9. The Company continues in discussions with the Department of Justice about a possible resolution to its investigation. The Company cannot predict with any certainty whether it will be able to reach ultimate resolution with the Department of Justice or any or all of the other parties, or the ultimate cost of resolving all of the matters. The final cost may be materially higher than this reserve.

As announced before, no dividends for now.

In the full year, the Group repaid $78m (2015: $112m) of its term loan as part of its commitment under the syndicated debt facility. The final dividend for 2015 was $69m, paid in July 2016 (2015: interim dividend of $23m). The Board has determined that it does not expect to pay further dividends in the foreseeable future.

The initial shareholders resolved, by a special resolution, passed on October 30, 2014, to reduce Indivior PLC's share capital by decreasing the nominal value of each Indivior Ordinary Share from $2.00 to $0.10. This created distributable reserves on the balance sheet that will provide Indivior with, among other things, capacity for the payment of future dividends.

Until now they have had a good run up in the price. Will it continue? If not, maybe time to exit.

TJH

http://www.iii.co.uk/research/LSE:INDV/ ... t=LSE:INDV

First quarter results - published 2nd May 2018.
I have been watching this company with a view to investing, but for me, the Litigation update remains a downer, although the share price is on a confident upward trend.

INDV is taking a pounding today after competitor Dr. Reddy's received U.S. approval to introduce a generic version of suboxone film. Down 19% to 400.2 pence as of this posting.

(I have never held.)

Another big drop for INDV today, after the company issued new FY18 revenue and income guidance yesterday. The stock is down about 60% this year, mainly due to concerns about competition from generics after generic versions of INDV's Suboxone Film treatment for opioid use received U.S. approval in June. In addition to the lowered guidance, INDV said yesterday the takeup of Sublocade (a once-a-month injection to treat opioid use) has been slower than expected, but the company still sees it bringing in annual revenue of $1 billion down the road.

There's no doubt at this point that opioid abuse is a serious public health emergency in the U.S., which would seem to be a very favourable backdrop for INDV. And if the company can emerge from the current turbulence in reasonable shape and Sublocade comes through as envisaged, I can see this making a potentially attractive distressed purchase. (The stock is cheap as chips as measured by its relative strength index.) But boy, is it risky.

(I don't hold.)