Indivior shares fell over 35 per cent this morning after the pharma company warned that sales and profit for the year would be lower than expected.
The company lowered its annual adjusted operating profit forecast to between $285m to $320m from $330m to $380m.
The pharma company also announced the discontinuation of sales of its schizophrenia drug Perseris and cut about 130 jobs.
It said net revenue has been impacted “more than expected by the elimination of COVID emergency measures related to automatic Medicaid coverage renewals,” chief executive officer of Invidior, Mark Crossley, said.
Despite the forecast downgrade, the firm remained upbeat for its long-term outlook “given the scale of the US opioid epidemic, which is now being driven by misuse of fentanyl and other synthetic opioids” adding that “its opportunity to help patients and deliver value for shareholders”.
“Importantly, despite the disproportionate disruption to our patient base, we expect Sublocade [a drug used to treat opioid use] to grow by 25 per cent at the mid-point of our new guidance range, reflecting strong underlying demand,” Crossley continued.
“We continue to be confident that Sublocade will achieve a net revenue run rate of $1bn as we exit 2025 and ultimately meet our target of greater than $1.5bn in peak annual net revenue, underpinning the successful delivery of our medium-term profitable growth ambitions,” Crossley added.
The news comes after Indivior moved its primary listing to the United States last month to capitalise on US market opportunities and investor base.