Deutsche Bank adjusts Indivior shares target amid revised profit guidance

Published 10/07/2024, 10:40
Deutsche Bank adjusts Indivior shares target amid revised profit guidance

On Wednesday, Deutsche Bank revised its price target for Indivior Plc (INDV:LN) (OTC: INVVY) shares, a global pharmaceutical company, decreasing it to £15.00 from the previous £23.50. Despite the reduction, the bank maintained its Buy rating on the stock.

The adjustment follows Indivior's recent business update, which was released earlier than anticipated. The company projected second-quarter sales to be between $295 million and $303 million, with Sublocade sales estimated between $188 million and $196 million. These figures align with Deutsche Bank's own model, which predicted $293 million in overall sales and $193 million from Sublocade.

Indivior has also revised its operating profit guidance for the fiscal year 2024, lowering it from the range of $330 million - $380 million to $285 million - $320 million. This represents a 12% growth at the midpoint compared to the previous fiscal year. The adjustment is attributed to several challenges that the company is facing with its products Sublocade, Perseris, and OPVEE.

The key issues impacting Indivior include stocking and renewals/coverage challenges for Sublocade, which is now expected to grow by 25% at the midpoint, a decrease from the previously estimated 32%. This is partly due to increased competition, notably from Brixadi.

Additionally, Perseris has encountered obstacles due to changes in payor management following the Inflation Reduction Act, leading to the conclusion that the product is no longer economically viable.

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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