NEW YORK, NY / ACCESSWIRE / September 19, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Indivior PLC ("Indivior" or the "Company") (NASDAQ:INDV) and certain officers. The class action, filed in the United States District Court for the Eastern District of Virginia (Richmond Division), and docketed under 24-cv- 00554, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Indivior securities between February 22, 2024 and July 8, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officers.
If you are a shareholder who purchased or otherwise acquired Indivior securities during the Class Period, you have until October 7, 2024 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Indivior is a global pharmaceutical company that develops, manufactures, and markets drugs to treat opioid use disorders ("OUD") and serious mental illnesses. Indivior's flagship drug is SUBLOCADE, a monthly injection used to treat moderate to severe OUD. In 2023, sales of SUBLOCADE generated net revenue of $630 million, which accounted for 58% of Indivior's net revenue in 2023.
Indivior also sells PERSERIS, which is an injection to treat schizophrenia in U.S. adults. In 2023, PERSERIS sales generated net revenue of $42 million.
In October 2023, Indivior launched OPVEE, a nasal spray to reverse opioid overdoses on an emergency basis.
In February 2024, Indivior announced its fourth quarter and full year ("FY") 2023 results and provided the following net revenue guidance for FY 2024: (i) net revenue guidance in a range of $1.24-$1.33 billion; (ii) SUBLOCADE net revenue guidance in a range of $820-$880 million; (iii) OPVEE net revenue guidance in a range of $15-$25 million; and (iv) PERSERIS net revenue guidance in a range of $55-$65 million. Indivior reaffirmed the foregoing net revenue guidance, in whole or in part, multiple times in April, May, and June 2024.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants (i) grossly overstated their ability to forecast the negative impact of certain legislation on the financial prospects of Indivior products, which forecasting ability was far less capable and effective than Defendants had led investors and analysts to believe; (ii) overstated the financial prospects of SUBLOCADE, PERSERIS and OPVEE, and thus overstated the Company's anticipated revenue and other financial metrics; (iii) knew or recklessly disregarded that because of the negative impact of certain legislation on the financial prospects of Indivior's products, Indivior was unlikely to meet its own previously issued and repeatedly reaffirmed FY 2024 net revenue guidance, including its FY 2024 net revenue guidance for SUBLOCADE, PERSERIS and OPVEE; (iv) knew or recklessly disregarded that Indivior was at a significant risk of, and/or was likely to, cease all sales and marketing activities related to PERSERIS; and (v) knew or recklessly disregarded that, as a result of the foregoing, the Company's public statements were materially false and misleading at all relevant times.
On July 9, 2024, Indivior issued a press release "announc[ing] a business update encompassing [its] outlook for [second quarter (‘Q2')] and FY 2024 financial performance" ("July 9 Update"). The July 9 Update reduced FY 2024 (i) total net revenue guidance to $1.15-$1.215 billion from the previous range of $1.24-$1.33 billion; (ii) SUBLOCADE net revenue guidance to $765-$805 million from the previous range of $820-$880 million; and (iii) OPVEE net revenue guidance to $9-14 million from the previous range of $15-25 million. The July 9 Update also shockingly advised that the Company would immediately cease all sales and marketing activities related to PERSERIS.
The July 9 Update explained that the reduction in guidance of SUBLOCADE net revenue for FY 2024 resulted in major part from accelerated Medicaid disenrollments at the end of Q2 2024. The July 9 Update further explained that the cessation of the marketing and sale of PERSERIS was due to the highly competitive market "and impending changes that are expected to intensify payor management in the treatment category in which PERSERIS participates," which led the Company to conclude that "there is no longer a path forward for PERSERIS that is financially viable." Finally, the expected adoption of OPVEE had lagged expectations.
Upon the above news and further commentary by Defendants on a subsequent conference call, Indivior's stock price fell $5.15 per share, or 33.57%, to close at $10.19 per share on July 9, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP