Rodman & Renshaw sets $16 target on Indivior stock with Buy rating

Published 28/01/2025, 13:38
Rodman & Renshaw sets $16 target on Indivior stock with Buy rating

On Tuesday, Rodman & Renshaw initiated coverage on shares of Indivior (NASDAQ: INDV) with a positive outlook, assigning a Buy rating and setting a price target of $16.00. The firm's analysts see Indivior as a prominent player in the addiction medication sector, particularly with its next-generation opioid use disorder treatment, which they believe could significantly boost the company's revenue.

Sublocade, Indivior's flagship product, is a long-acting injectable treatment for opioid use disorder. Analysts at Rodman & Renshaw are optimistic about the market for long-acting opioid use disorder treatments, which they consider to be at an early stage of growth. They argue that the market dynamics are not a zero-sum game between Sublocade and its competitor Brixadi, expecting both products to exceed current market expectations due to the expanding market.

The analysts also addressed investor concerns regarding the competition from Brixadi and its impact on the growth trajectory of Sublocade. They believe that the market has overreacted to the competitive threat, resulting in an undervaluation of Indivior's stock. This presents what they consider an attractive investment opportunity, especially since the company has largely resolved its legal issues that previously weighed on its stock performance.

Rodman & Renshaw anticipates that disciplined expense management will lead to margin expansion for Indivior, contributing to further upside potential for the company's stock. They also expect that successful commercial execution of Sublocade will be a key driver for Indivior's stock performance throughout 2025.

In other recent news, Indivior PLC (LON:INDV) has revealed promising results in its research on SUBLOCADE, a medication aimed at aiding recovery from opioid use disorder (OUD). The data, disclosed during Substance Abuse Prevention Month, underscored the significance of access to long-acting injectable treatments like SUBLOCADE in supporting long-term recovery. Studies, including a phase 3 clinical trial, showed that SUBLOCADE's 300 mg dose significantly boosts opioid abstinence among users.

Indivior also reported its third-quarter results, which met revenue expectations and exceeded bottom-line projections. This led Piper Sandler to increase its price target for the company's shares. However, due to increased competition, Indivior revised its full-year 2024 revenue projections for Sublocade, expecting revenues to range between $725 million and $745 million.

The U.S. Food and Drug Administration (FDA) has granted Priority Review for a Prior Approval Supplement (PAS) for Sublocade, potentially enhancing treatment options. Additionally, Indivior secured an $8.7 million order from the Biomedical Advanced Research and Development Authority (BARDA) for Opvee, a medication designed to reverse opioid overdoses. These are some of the recent developments that investors may want to consider when evaluating Indivior's financial health.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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