Shares in FTSE 250 drugmaker Indivior dropped today after the firm said it was forced to set more money aside for legal disputes.
Indivior increased provisions for investigative and antitrust litigation matters by $185m (£131m) to $438m, sending its shares down as much as nine per cent.
However, Indivior said its full-year profit before tax increased to $137m from $98m the previous year, while net revenue rose three per cent to $1.09bn, mainly due to stronger market growth in the US.
The company expects group sales of between $1.13bn and $1.17bn in 2018.
Why it's interesting
Indivior is banking on the success of its Sublocade opioid addiction treatment, which is set to be launched in the US at the end of the month. Although it expects peak annual net sales of at least $1bn, it said initial net revenue is set to be "relatively modest" in the early stages of the launch.
The company is embroiled in a number of patent lawsuits with other pharmaceutical companies and it is also being investigated by the US Department of Justice over its marketing practices and claims it tried to delay entry of generic versions of some of its products.
"Because these matters are in various stages, Indivior cannot predict with any certainty the ultimate resolutions, costs or timing of the resolutions of any of the matters," the company said.
What Indivior said
Shaun Thaxter, Indivior's chief executive, said
2017 was a year of significant accomplishment for Indivior. By executing strongly across the business, we continued to build our leadership position in treating addiction and its co-occurrences.
Our 2017 achievements have continued to de-risk our business, enhance our compliance programmes, and placed Indivior on a solid path to deliver long-term shareholder value.