FTSE 250 movers: Indivior tanks on profit warning; Auction Technology surges

10th Oct 2024 15:20

(Sharecast News) - FTSE 250 (MCX) 20,723.35 -0.48%

Shares in Indivior plunged on Thursday after the pharma group cut its full-year revenue forecast for the second times following a weaker-than-expected third-quarter performance from Sublocade, its treatment of moderate to severe opioid use disorder.

The company said it is seeing faster initial adoption among treatment providers of a competing long-acting injectable (LAI) to Sublocade, as well as "variability in the timing of funding among certain Criminal Justice System accounts and incremental lower trade stocking".

As a result, third-quarter sales of Sublocade would be between $302m and $309m, up just 13% on last year at the midpoint of the range. This means that full-year sales of the treatment are now expected to be between $725m and $745m, up 17% on last year at the midpoint.

The company had said in July that 2024 Sublocade sales would be between $765m and $805m, representing 25% growth at the midpoint.

As a result, full-year net revenues are now expected to total $1,125m-1,165m, lower than July's already downgraded guidance of $1,150m-1,215m. This equates to just 5% growth on last year.

The downgrade - alongside a new forecast of no improvement to margins - means adjusted operating profits will be flat year-on-year at around $260m-280m, compared with July's $285m-320m target.

"We are seeing faster than expected initial adoption of the competitive product to SUBLOCADE," said chief executive Mark Crossley.

"In addition, looking to the year ahead, as the US market adjusts to two LAI products, pressure on SUBLOCADE volume growth is expected from continued initial competitor adoption. Therefore, we no longer expect that SUBLOCADE will exit 2025 at a $1 billion net revenue run rate," he said.

Volution Group shares fell despite reporting a 6.1% increase in full-year revenue and an 8.7% rise in adjusted pre-tax profit.

Auction Technology Group said it expects full-year revenues to be slightly shy of earlier guidance as it announced the resignation of its chief financial officer.

In a trading update for the financial year ended 30 September, the online auction marketplace operator said annual revenues would likely rise 5% to $174m.

Back in May at the time of its interim results, the company said it was expecting revenues in the range of $175-180m, targeting revenue growth of 7% at the mid-point of the range.

ATG also said that adjusted EBITDA margins would be between 45% and 46% for the year, marginally lower than earlier guidance of 46%.

The company said it has made good progress during the year, though gross merchandise value declined as "headwinds in the underlying end markets have yet to reverse".

In a separate statement, ATG said that Tom Hargreaves was stepping down as CFO to take up a new position at a private equity-backed company. His departure comes just two months after chair Breon Corcoran stepped down to focus his other role as IG Group chief executive.

"Tom has been with ATG for almost eight years and played a key role in the ATG journey. On behalf of myself and the board I want to thank Tom for his many contributions to ATG's success and wish him the best in the next phase of his career," said ATG chief executive John-Paul Savant.

Canadian investment form Brookfield has trumped Segro's effort to buy warehouse owner Tritax EuroBox with an agreed £557m offer.

Brookfield is offering 69p a share, a 6% uplift on Segro's offer of 65.1p. Including debt, the deal is worth £1.1bn Brookfield said on Wednesday.

"The terms of the acquisition represent an attractive premium for ... shareholders over the terms of the Segro offer and accordingly Tritax EuroBox shareholders are encouraged to take no action in respect of the Segro offer," Tritax said.

Brookfield said Tritax had traded at a "persistent discount" to its net asset value since it became a public company "which has limited its ability to grow, in particular from further equity capital raises".

It added that bringing Tritax under private ownership "will both better position it for further investment into existing assets, coupled with the benefits that accrue from being part of a scaled, better capitalised and actively growing real estate platform".

FTSE 250 - Risers

Auction Technology Group (ATG) 442.00p 7.28%

Hochschild Mining (HOC) 191.20p 6.34%

Lancashire Holdings Limited (LRE) 651.00p 3.99%

Centamin (DI) (CEY) 149.70p 3.81%

Raspberry PI Holdings (RPI) 395.10p 3.76%

Wood Group (John) (WG.) 129.80p 3.02%

Tritax Eurobox (GBP) (EBOX) 71.00p 2.75%

Endeavour Mining (EDV) 1,708.00p 1.97%

Aston Martin Lagonda Global Holdings (AML) 114.20p 1.87%

TBC Bank Group (TBCG) 2,580.00p 1.78%

FTSE 250 - Fallers

Indivior (INDV) 589.50p -17.95%

Bytes Technology Group (BYIT) 471.00p -7.01%

Genus (GNS) 2,065.00p -4.18%

Volution Group (FAN) 588.00p -3.92%

Primary Health Properties (PHP) 97.65p -2.84%

CMC Markets (CMCX) 295.00p -2.80%

Chemring Group (CHG) 358.00p -2.59%

Supermarket Income Reit (SUPR) 72.30p -2.56%

Bodycote (BOY) 556.00p -2.46%

Crest Nicholson Holdings (CRST) 177.40p -2.42%