Indivior announced on Monday that it has reached an agreement to settle a multi-district Suboxone litigation case in the United States, agreeing to pay $385 million to resolve the claims.
The litigation at the center of this case revolved around allegations that Indivior engaged in practices to impede generic competition for Suboxone, an opioid addiction treatment, in an effort to maintain its market dominance.
Indivior is prepared to disburse $385 million, and this will result in a charge of $228 million during the third quarter, which will be excluded from the adjusted earnings.
In a statement, the company explained, “This charge represents the additional amount above the current remaining provision of $157 million for the antitrust multi-district litigation, 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.”
Read more: Indivior Must Face Opioid Antitrust Suit
This settlement brings the multi-district litigation to a close, contingent on approval by the United States District Court for the Eastern District of Pennsylvania. Consequently, a trial, which had been set to commence in the near future, has been canceled.
Mark Crossley, the Chief Executive Officer of Indivior, commented, “We are pleased to achieve this settlement to conclude this legacy multi-district antitrust matter. 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.”
It’s worth noting that Indivior was previously part of Reckitt Benckiser Group PLC before being spun out as an independent company in late 2014.
In addition to this settlement news, Indivior also provided guidance for the third quarter and full year. They anticipate net revenue between $268 million and $273 million for the third quarter, representing a 17% year-on-year increase at the midpoint.
Source: AJ Bell