Indivior shares bounce back after legal victory
Pharmaceutical pioneer Indivior was given a welcome shot in the arm yesterday after a US court banned one of its competitors from selling its cheaper generic products.
indivior had become embroiled in a legal row with indian firm Dr reddy’s laboratories when it began manufacturing a copycat version of indivior’s film-format drug, used to treat addiction to opioids such as heroin. the Us court had already granted indivior a temporary restraining order, meaning that Dr reddy’s was banned from selling, offering or importing its product. But the latest decision means this has been extended until the court decides whether to formally grant a patent to indivior’s drug.
Shaun thaxter, indivior’s chief executive, said: ‘ Protecting the integrity of our intellectual property is fundamental to our ability to deliver our vision, that all patients around the world have access to evidence-based treatment for addiction and its cooccurring disorders.’ the court added that indivior must still set aside an as-yet undecided amount to compensate Dr reddy’s in case the patent is not granted, for the loss the indian company will suffer from the ban.
indivior claimed last week that its 2018 revenue would take at least a £19m hit from the market share Dr reddy’s grabbed before the ban came into force.
the announcement wiped more than £800m off indivior’s market value as its shares sank by 29.5pc.
But it went some way to making that back yesterday as it climbed by 16.9pc, or 49.3p, to 340.5p.
aim-listed Integumen, which creates products to improve the appearance of skin, hair and nails, had less luck as its shares crashed 19.9pc, or 0.17p, to 0.68p.
it said a ‘slower than anticipated growth in sales’ had contributed to a £9.5m operating loss, in a year which has seen it acquire men’s brand Stoer Skincare and agree to buy a 9.3pc stake in biodegradable plastics company cellulac.
there was less drama in the blue-chip FTSE 100, which ended the day down 0.8pc, or 61.42 points, at 7600.45. investment platform Hargreaves
Lansdown weighed on the index after Britain’s financial regulator, the Financial conduct authority, said in a study that it was considering banning exit fees charged to customers. hargreaves lansdown’s chief executive chris hill said: ‘We welcome the work the Fca is doing in this area and the study recognises the key role that investment platform services play in helping people save and invest with confidence.’
after a sharp fall as markets opened, it recovered to end the day down 1.8pc, or 38p, at 2019p.
transport firm Go-Ahead, the largest operator of london bus services and the company behind Southeastern rail and Govia thameslink railway, was driven down by a note from analysts at hSBc.
they slashed Go-ahead’s target price from 2030p to 1700p, downgrading their recommendation to ‘hold’ from ‘buy’ due to rail franchise risks and a more cautious outlook on buses.
Go-ahead’s shares fell by 9.2pc, or 141p, to 1388p.
high Street department store chain Debenhams was also under pressure, following reports that some credit insurers had tightened their terms for it suppliers.
Suppliers use credit insurers to cover the risk that Debenhams might not pay them – a scenario which the insurers seem to believe is becoming more likely.
Debenhams, which is in the middle of a turnaround plan, had to assure investors and other stakeholders that its balance sheet and cash position were ‘healthy’. But shares still slipped 4.8pc, or 0.71p, to 14p.