Scandal piles pressure on Reckitt’s £101m man

RECKITT Benckiser’s shares fell 6.5pc as it risked getting dragged into the scandal over sales of opioid addiction treatments by Indivior.

The consumer goods giant, which makes Durex condoms, Vanish detergent and Nurofen painkillers, owned Indivior during the period when American prosecutors say it fraudulently marketed its Suboxone product across the US.

Reckitt is not named as a defendant in the case. It spun off Indivior in 2014 and the two firms are now completely separate. But charges filed by the US Department of Justice alleged plans to fraudulently market the film version of

Suboxone as safer than tablets went back as far as 2009. They say this was done despite a lack of scientific evidence to back the claims up.

It is potentially embarrassing for Rakesh Kapoor ( pictured), who took over as chief executive of Reckitt in 2011 and stressed the benefits of Suboxone film in quarterly results calls. In addition to potentially wiping out Indivior, which faces a £2.3bn fine, analysts warned the charges could also put Reckitt in jeopardy.

In a note to investors, UBS analysts pointed to a warning in the company’s annual report, which said it was in discussions with the US

Department of Justice over Indivior but could not be assured it would reach a settlement.

Reckitt has set aside more than £300m for possible charges related to the scandal, but it said: ‘The final cost for the company may be substantially higher than this provision.’

It is the latest headache for outgoing boss Kapoor, 60, who also faces a possible investor revolt over his pay and lucrative pension payments. He has been paid £101m since taking the helm at Reckitt.