FTSE-250 drug firm looking pale after $220m litigation charge

 
Shruti Tripathi Chopra
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The drug firm saw pre-tax profit fall to $98m from $285m (Source: Getty)

FTSE-250 drug company Indivior's full-year pre-tax profits have taken a beating from a $220m (£176m) litigation charge.

The drug firm, which makes addiction treatment drugs, saw pre-tax profit fall to $98m from $285m for the year to the end of December.

The company recorded a charge of $220m in the third quarter of 2016 for investigative and antitrust litigation matters related to its addiction drug Suboxone Film in the US.

Despite the charge, net revenue was up four per cent to $1.06bn and adjusted operating profit was up three per cent at $387m.

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At the time of writing, shares in the firm had dipped nearly 11 per cent at 369.60p

Indivior said it expects full-year 2017 net revenue of between $1.05bn and $1.08bn and net income in a range of $200m-$220m, "assuming no material change to current market conditions in the US".

It also plans to reinvest an additional $40m to $60m in driving future organic growth priorities.

Chief executive officer Shaun Thaxter said: "Indivior had a strong second year as a public company. We outperformed our financial plan for the year and we made significant strategic progress against our objectives. The treatment market in the US grew by high single digits, with many new doctors certified, and more patients in treatment."​

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