(Reuters) - Shares of drugmaker Indivior Plc fell as much as 10 percent on Wednesday, a day after the company lost a legal battle that will allow an Indian generic rival to sell a copycat version of its blockbuster film-based opioid addiction treatment.
The company stuck to its full-year forecast on Wednesday, but warned it could take a hit if the rival drug from Dr. Reddy’s Laboratories Ltd comes to market this year.
Indivior’s shares nearly halved in value on Tuesday and sank to an all-time low of 104.95 pence after a preliminary injunction blocking Dr. Reddy’s from selling the generic was lifted by a U.S. court.
But the company said its 2018 net revenue forecast of $990 million to $1.02 billion and net income forecast of $230 million to $255 million remained valid.
Indivior has been battling the introduction of a cheaper generic version of Suboxone, and has also faced distribution challenges with its new injectable opioid addiction drug, Sublocade.
“We acknowledge that the company faces challenges in the intervening period resulting from a potential material and rapid loss of market share to generic buprenorphine/naloxone sublingual film competition, including reduced earnings and cash flow,” Chief Executive Officer Shaun Thaxter said.
The UK-listed company, which spun-off from consumer products group Reckitt Benckiser in 2014, had earlier this month forecast a $12 million to $18 million hit to revenue for the year from the generic Suboxone launched by Dr.Reddy’s.
The company said it was in advanced stages of contingency planning to offset the hit from the generic competition and said it would now undertake a full review of its plans.
Indivior shares were down 5.2 percent in early trade.
Reporting by Shashwat Awasthi in Bengaluru; Editing by Bernard Orr