Sections

ideals
Business Essentials for Professionals

Despite High Legal Bill, Indivior Confident About Its $1 Billion Anti-Addiction Injection


02/17/2018


Despite High Legal Bill, Indivior Confident About Its $1 Billion Anti-Addiction Injection
Britain’s Indivior was forced to earmark money for the legal disputes it faces even as the company hopes to make significant financial gains with its soon to be launched once-monthly injection to counter the U.S. opioid crisis.
 
The shares of the company dropped by 7 per cent after the company announced an increase of its provision from $185 million to $438 million to finance the legal cases related to investigative and antitrust litigation issues. The shares of the company have however more than tripled ever since company’s IPO in December of 2014.
 
There are allegations against the company of intentionally delaying the introduction of generic versions of a few of its products into the market and the marketing practices of the company is being probed by the U.S. Department of Justice.
  
There was no clarity about the possibility of a settlement to the legal issues due to the increased provisions from Chief Executive Shaun Thaxter.However, he said he was “very, very confident” about the future.
 
While anticipating that the initial sales of the its long-lasting Sublocade injection, would be slow, the company strongly believes that the introduction of the product in the U.S. market, scheduled for the week of Feb. 26, would turn out to be a hit.
 
“The net revenue potential of this product is well above $1 billion but we don’t want people to be unrealistic about what we will achieve in the first year,” Thaxter said in an interview.
 
A new approach is reflected in the treatment of addition by Sublocade. Doctors’ offices would be directly supplied with the injection to be administered to patients instead of the current way of getting Indivior’s tablets from a pharmacy or the under-the-tongue film.
 
Thaxter said: “We would expect to see some very noticeable sales growth by the last quarter (of 2018)” and added that for the setting of the new distribution system some time would be needed.
 
The company is anticipating that the sale of the new injection would be somewhere between $1.13 billion and $1.17 billion for the fiscal year 2018 from about $1.09 billion last year. This figure would be driven by an anticipated launch of a long-acting injection for schizophrenia during the later part of the year.
 
In the last five years, there has been a 10 per cent growth in the market for treatments with are aimed at suppressing the cravings for addiction which has assumed epidemic proportions in the United States which has further increased the demand for the products of Indivior.
 
In 2016, there were 63,000 deaths from overdoses in the U.S. which was a jump of 21 per cent and according to official figures, the overall life expectancy of Americans has been reduced due to the opioid crisis.
 
In late 2019, Canada, Australia and Europe could also see the launch of Sublocade in the present form and the new format of the medicine being set in the doctors’ office also allows elimination of any risk of diversion or misuse of the treatment.  
 
(Source:www.reuters.com)