FTSE 250 movers: Indivior profit warning weighs on index

9th Jul 2024 14:36

(Sharecast News) - FTSE 250 (MCX) 20,646.12 -0.73%

Pharma group Indivior saw shares plummet on Tuesday after it issued a profit warning for 2024 on the back of "adverse market dynamics" affecting its Sublocade treatment, and announced it was discontinuing its Perseris product.

Indivior said it expects to generate $1,150-1,215m in revenues for 2024, down from earlier guidance of $1,240-1,330m, with adjusted operating profits pencilled in at $285-320m, compared with previous projections of $330-380m.

The downgrade was mainly due to lower expected sales of Sublocade, its treatment of moderate to severe opioid use disorder.

"Despite positive early performance trends at the start of the second quarter, Sublocade net revenue has continued to be impacted more than we expected by a combination of transitory factors, primarily the elimination of COVID emergency measures related to automatic Medicaid coverage renewals," explained chief executive Mark Crossley.

"Furthermore, as we look to the second half of the year, the U.S. government has extended renewal allowances for certain States which will further delay the annualisation of this significant headwind."

Meanwhile, the company said it was discontinuing the sales and marketing of Perseris, previously expected to generated $55-65m in sales this year, which it said was in the "best interests of shareholders due to the highly competitive market and impending changes that are expected to intensify payor management in the treatment category".

Indivior said that an analysis of forthcoming changes in the market suggests that "there is no longer a path forward for Perseris that is financially viable". The company will continue to supply the product for the foreseeable future to avoid disruption to patient care but will no longer deploy a dedicated sales force, which will result in 130 job losses. The company will book a charge of $65m from these changes.

Indivior also revealed it was paying $85m to settle antitrust claims ahead of an expected trial date on 15 July - bringing an end to litigation that has been pending since 2020.

Recruiter PageGroup warned on profits on Tuesday, citing geopolitical and macroeconomic uncertainty.

In a trading update for the second quarter, the company said gross profit fell 12% versus the same period a year earlier to £224m. PageGroup said it continued to see tough market conditions in the majority of its markets, with no immediate signs of improvement.

"As clients' recruitment budgets have tightened, they have become more risk averse which has slowed the recruitment process," it said. "Although salary levels remain strong, offers made to candidates were not as elevated as they were in 2022 and early 2023."

The recruiter also said it had seen a slower end to the quarter, with June gross profits down 18% on 2023 and a softening of activity levels through the quarter, particularly in terms of new jobs registered and number of interviews.

PageGroup said conversion of interviews to accepted offers remains the most significant challenge due to subdued client and candidate confidence.

"Given the weaker than expected trading in June, recent increased geopolitical and macroeconomic uncertainty and consequently a more cautious view for H2, the board now expects full year 2024 operating profit to be in the region of £60m," it said. This is down from £118.8m last year and below estimates of £90m.

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FTSE 250 - Fallers

Indivior (INDV) 720.50p -38.99%

Pagegroup (PAGE) 394.00p -6.77%

Hays (HAS) 89.45p -5.49%

Hiscox Limited (DI) (HSX) 1,219.00p -3.79%

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North Atlantic Smaller Companies Inv Trust (NAS) 3,950.00p -3.19%

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