RBC, Jefferies affirm Indivior 'buy' rating after 'rollercoaster' court case
By Iain Gilbert
Date: Monday 16 Jul 2018
(Sharecast News) - Analysts at Jefferies and RBC Capital Markets reiterated their 'buy' rating on drugmaker Indivior as the company received a "major boost to sentiment" in the wake of a favourable US court decision in its case against rival Dr Reddy's.
The court issued a preliminary injunction against Dr Reddy's, restricting the firm from selling, marketing or importing a generic version of Indivior's Suboxone film, an opioid-addiction treatment.
RBC Capital referred to the case as "a rollercoaster".
The news comes just days after Indivior's stock dived by nearly a third after the firm issued a sales and profits when Dr Reddy's started selling its own version of the drug to patients before a restraining order could be imposed.
"We see this news as helping to protect its market-leading franchise but more importantly stop interference as it continues to launch what we perceive to be the best in class asset Sublocade," said RBC.
RBC felt the injunction would push generic challengers out of the market by four to six months given initial appeal timelines but, perhaps optimistically, by as much as 12-18 months.
"As long-term, we see Sublocade as the market-leading asset in a growing, high-profile, market," added RBC.
Jefferies downgraded its target price on Indivior to 545p from 630p, while RBC left its 550p target unchanged.
"For Indivior shareholders, recent events have been challenging but we would argue the reward is coming home, " concluded RBC.
(Writing by Frank Prenesti)
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