Fresh setback for London as Indivior joins market exodus

INDIVIOR, the British drug maker, is to ditch its primary listing on the London Stock Exchange for New York in the latest blow to the Square Mile.

The company, which makes treatments for opioid addiction and schizophrenia, said it could move its primary listing to the United States as soon as this summer and is consulting shareholders over the switch.

Shares in Indivior surged by as much as 22pc on the announcement, the highest since late November.

The FTSE 250 company said it was proposing the move as there was more opportunity for its treatments in the US and almost half of its shares were already held by investors based there.

Indivior said: “The board is aware this is an important topic for shareholders

‘The board is mindful that a resolution to move forward requires the support of 75pc of shareholders’

and is mindful that a resolution to move forward requires the support of 75pc of shareholders present and voting.”

It plans to maintain a secondary listing in London if the US move proceeds.

It is the latest setback for the City, coming just a week after Tui shareholders backed a proposal to move the travel giant’s listing to Frankfurt.

Ministers are currently attempting to push through reforms to make London a better place for companies to be listed.

In 2020, Indivior’s former chief executive, Shaun Thaxter, pleaded guilty to a US charge related to the marketing of Suboxone, an opioid addiction treatment. He was jailed for six months.

Indivior was later hit by an investor revolt in London over a planned “good leaver” bonus for Thaxter, who was at the time in jail. However, the majority of shareholders voted in favour of the £900,000 payout.

Last year, Indivior reached a separate $385m (£305m) settlement with wholesalers over its marketing of Suboxone.

In recent years, there has been a boom in demand for opioid addiction treatments in America.