Indivior PLC (LON/NASDAQ: INDV), a leading addiction treatment company, announced that its subsidiary, Indivior Inc., has reached an agreement to resolve the claims brought by the direct purchasers in the In re Suboxone Antitrust Litigation multi-district litigation.
Indivior previously announced settlement agreements with two other groups of plaintiffs in the MDL, a class of End Payors (the “EPs”) and various State Attorneys General (the “States”). The agreement with the direct purchasers will mark the conclusion of the MDL, once the settlements for the Claimants and EPs are approved by the United States District Court for the Eastern District of Pennsylvania (the “Court”). The trial, which was scheduled to begin on October 30, 2023, will be canceled.
As part of the Agreement with the Claimants, Indivior will pay $385 million and will take a charge of $228 million in the third quarter, which will be excluded from adjusted earnings. This charge represents the additional amount above the current remaining provision of $157 million for the Antitrust MDL, which reflects the previously announced settlement agreements with the States and End Payors. The Agreement will become final once approved by the Court. Payment of the $385 million is expected to be made in November 2023 and funded from Indivior’s existing cash.
“We are pleased to achieve this settlement to conclude this legacy multi-district antitrust matter,” said Indivior Chief Executive Officer Mark Crossley. “The resolution of this litigation, which was filed over a decade ago, provides greater certainty for all Indivior stakeholders and allows us to continue focusing on our important work for patients suffering from opioid use disorder and mental health illnesses around the world.”
Indivior expects that Court approval of the Agreement will remove the previously disclosed material uncertainty related to Indivior’s going concern basis of accounting.
Preliminary Q3 and YTD 2023 Results:
Based on management’s current view, the below preliminary unaudited results are expected:
| $-in millions | Q3 2023 | YTD 2023 |
| Net revenue | $268m to $273m(+17% vs. Q3 2022 at the mid-point) | $797m to $802m(+21% vs. Q3 YTD 2022 at the mid-point) |
| SUBLOCADE net revenue | $165m to $170m(+55% vs. Q3 2022 at the mid-point) | $452m to $457(+57% vs. Q3 YTD 2022 at the mid-point) |
| Reported operating profit | ($178m) to ($188m) | ($60m) to ($70m) |
| Adjusted operating profit | $55m to $65m(+3% vs. Q3 2022 at the mid-point) | $197m to $207m(+17% vs. Q3 YTD 2022 at the mid-point |
Indivior will report Q3 and YTD 2023 results on November 9th.
