Indivior lifted by trial results By Geoff Foster
SPUN out of Reckitt Benckiser in December after the Dettol-to-Vanish household goods giant apparently failed to find a buyer for its pharmaceuticals arm, probably because its drugs face stiff competition from copycat versions, Indivior appears in excellent health.
Floated at 120p, the shares closed a further 17.3p or 8.5pc higher at 220.4p following positive clinical trial results of RBP-700, an investigational drug in development for the treatment of schizophrenia.
In the study, both doses of RBP-700 tested, 90mg and 120mg administered once-monthly, met the primary end point with statistically and clinically significant reductions in the symptoms of acute schizophrenia over an eight-week treatment period.
Indivior, or RB Pharma as it was, began life with the goal of addressing the lack of treatment for the worldwide problem of addiction. It is based on the lucrative heroin addiction medication, Suboxone. It made revenues of £794m and pre-tax profits of £324m in 2013 but in 2014 saw rising competition for generic unbranded rivals which brought about an 8pc dent in sales. It had to cut prices to defend its market share of Suboxone, which lost patent protection in 2009.
Reckitt Benckiser shareholders were given one new share in Indivior for each existing share in Reckitt when the split took place. Reckitt’s shares have jumped from a predemerger level of £52 to trade as high as 6130p. Profit-taking left yesterday’s close 72p lower at 5728p.
The day’s takeover rumour involved Aveva, the maker of design software, much of which goes to the oil and gas industry. Punters chased the shares up to 1782p at one stage on growing speculation of a possible privateequity cash offer in the region of £24 a share. The close was 28p better at 1750p. Aveva has indicated that full-year 2015 trading is in line with market expectations. Results are due on May 19.
The fragile Footsie gave up a 68 point gain to finish 58.37 points down at 6927.58 amid fears that with Labour and the Conservatives virtually tied in the polls, a minority government, and a possible second General Election, would bring months of political limbo and uncertainty in markets.
Sentiment in London was not helped by an early 77 point fall on Wall Street following news of the largest US trade deficit ($51.4bn) figure in March since 2008. It took the gloss off much better-than- expected quarterly profits from Dow Jones constituent Walt Disney following increased spending by visitors at its theme parks. Its shares touched a record $113.30 in early dealings.
Still reflecting Citigroup’s upgrade last week, Coca Cola HBC advanced 41p to 1417p.
Following the closure of some hefty short positions ahead of today’s results, supermarket Sainsbury’s put on 3.3p to 275p. Fresh from his Egyptian travels, chief executive Mike Coupe is expected to wheel out the group’s first annual profit fall since 2005.
Imperial Tobacco slumped 109p to 3120p on nervous selling ahead of today’s secondquarter results. Investors will be focusing on any comments from management on the Reynolds American-Lorillard merger in the US. Recent speculation suggests the deal will soon get the green light from the authorities, paving the way for Imps to significantly increase its operations in America. Rival
Bats lost 92.5p to 3547.5p. After HSBC upgraded the stock to hold from underweight, betting shop group Ladbrokes cantered 3.5p forward to 105.4p. Yet Peel Hunt warns that it is most exposed to Labour’s plans to give Local Authorities increased powers over betting shops, including development and machines within shops. The Liberal Democrats also want to reduce maximum stake on B2 machines, currently £100. Hochschild Mining, the UK-based silver and gold mining business operating in North, Central and South America, attracted renewed support and closed 9.25p up at 107.5p. The stock has soared 75pc since mid-April much to the delight of billionaire Peruvian businessman, Eduardo Hochschild, who is chairman and major shareholder.
Fusionex International jumped 17.5p to 340p after the international provider of enterprise software specialising in Analytics and Big Data Solutions, announced a new partnership for its Big Data platform with Mesiniaga, one of Malaysia’s leading ICT solutions providers.
Further consideration of the £33m loan facility from Oberland Capital which will be used primarily to expand the manufacturing capacity for Novartis’ clinical development programme, helped Oxford BioMedical firm 0.25p to 11.5p. The monies will also help fund OB’s pipeline development and for product acquisitions. ÷ STRIDE Gaming is legging it to AIM. Chairman Nigel Payne is floating the multibranded online bingo business on the junior market and plans to go on the acquisition trail. He is raising £10m and believes the time is right to capitalise on the opportunities afforded by regulatory changes, which is forcing consolidation in the industry. Its online bingo brands includes Kitty Bingo, Lucky Pants Bingo and King Jackpot.