SAN DIEGO, Sept. 13, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of purchasers or acquirers of Indivior PLC (NASDAQ: INDV) (“Indivior” or the “Company”) securities between February 22, 2024 and July 8, 2024, inclusive (the “Class Period”), charging the Company and certain senior executives with violations of the federal securities laws (collectively, “Defendants”).
Indivior investors have until October 1, 2024, to seek appointment as lead plaintiff of the Indivior class action lawsuit.
If you purchased or otherwise acquired Indivior securities between February 22, 2024 and July 8, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/indivior/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or at investors@dicellolevitt.com. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased or acquired.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Indivior is a pharmaceutical company that develops, manufactures, and markets drugs to treat opioid use disorders and serious mental illnesses. Indivior’s flagship drug is SUBLOCADE, a monthly injection used to treat moderate to severe OUD. In 2023, sales of SUBLOCADE generated net revenue of $630 million, which accounted for 58% of Indivior’s net revenue in 2023. In October 2023, Indivior launched OPVEE, a nasal spray to reverse opioid overdoses on an emergency basis.
In February 2024, Indivior announced its fourth quarter and full year (“FY”) 2023 results and provided the following net revenue guidance for FY 2024: (i) net revenue guidance in a range of $1.24-$1.33 billion; (ii) net revenue guidance for SUBLOCADE in a range of $820-$880 million; (iii) OPVEE net revenue guidance in a range of $15-$25 million; and (iv) PERSERIS net revenue guidance in a range of $55-$65 million. Indivior reaffirmed the foregoing net revenue guidance, in whole or in part, multiple times in April, May, and June 2024.
The Indivior lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants: (i) grossly overstated their ability to forecast the negative impact of certain legislation on the financial prospects of Indivior products, which forecasting ability was far less capable and effective than Defendants had led investors and analysts to believe; (ii) overstated the financial prospects of SUBLOCADE, PERSERIS and OPVEE, and thus overstated the Company’s anticipated revenue and other financial metrics; (iii) knew or recklessly disregarded that because of the negative impact of certain legislation on the financial prospects of Indivior’s products, Indivior was unlikely to meet its own previously issued and repeatedly reaffirmed FY 2024 net revenue guidance, including its FY 2024 net revenue guidance for SUBLOCADE, PERSERIS and OPVEE; (iv) knew or recklessly disregarded that Indivior was at a significant risk of, and/or was likely to, cease all sales and marketing activities related to PERSERIS; and (v) knew or recklessly disregarded that, as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times.
On July 9, 2024, Indivior issued a press release “announc[ing] a business update encompassing [its] outlook for [second quarter (‘Q2’)] and FY 2024 financial performance.” The update reduced FY 2024 (i) total net revenue guidance to $1.15-$1.215 billion from the previous range of $1.24-$1.33 billion; (ii) SUBLOCADE net revenue guidance to $765-$805 million from the previous range of $820-$880 million; and (iii) OPVEE net revenue guidance to $9-14 million from the previous range of $15-25 million. The Company’s update also shockingly advised that Indivior would immediately cease all sales and marketing activities related to PERSERIS.
Indivior further explained in its update that the reduction in guidance of SUBLOCADE net revenue for FY 2024 resulted in major part from accelerated Medicaid disenrollments at the end of Q2 2024. And the Company explained that the cessation of the marketing and sale of PERSERIS was due to the highly competitive market “and impending changes that are expected to intensify payor management in the treatment category in which PERSERIS participates,” which led the Company to conclude that “there is no longer a path forward for PERSERIS that is financially viable.” Finally, the expected adoption of OPVEE had lagged expectations.
Upon the above news and Defendants’ further commentary on a subsequent conference call, the price of Indivior’s common stock plummeted 33.57%, falling $5.15 per share to close at $10.19 on July 9, 2024.
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