Indivior (INDV) moved up 11 positions on Monday into the 46th spot on Barchart’s Top 100 Stocks to Buy. The opioid-treatment pharmaceutical company was one of only eight stocks in the top 50 to gain at least 10 spots in yesterday’s trading.
The Barchart Technical Opinion is a Strong Buy. Up nearly 13% in the past month and 139% over the past 12 months, momentum is definitely on its side.
UK-based consumer products company Reckitt Benckiser (RBGLY) spun off Indivior in December 2015. Its shares began trading on Nasdaq in June 2023. Indivior dropped its secondary listing on the London Stock Exchange at the end of June.
While I’m not too familiar with Indivior, I am very intrigued by its mission to help treat opioid addiction, which continues to devastate families in the U.S. and elsewhere.
Profitable and growing, its momentum looks justified. Here’s why you might consider buying its stock.
As I Said, It’s Profitable
In the first six months of 2025, Indivior’s net profit was $65 million, 281% higher than a loss of $36 million in the same period a year earlier. On a non-GAAP basis, it earned $121 million in the first six months, down from $138 million.
However, the adjusted earnings from a year ago included $160 million in litigation expenses from its July 2020 settlement with the U.S. Department of Justice, the U.S. Federal Trade Commission, and U.S. state attorneys general. I’ll get into this further in the next section.
For all of 2025, it now expects top-line revenue of $1.055 billion at the midpoint of its guidance, up from its previous estimate of $990 million. The 2025 estimate is down from $1.18 billion in 2024. The decline is primarily due to increased competition leading to lower market share for its Suboxone products worldwide.
However, the company estimates its Sublocade revenue in 2025 will be $775 million, up 3% from 2024, and $3o million higher than its previous guidance.
On the bottom line, it expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $288 million, up from $240 million previously.
Indivior’s Transformation Progressing
The company’s multi-year plan to deliver value for shareholders while growing its business starts with its U.S. Sublocade revenue. Sublocade accounts for 70% of its annual revenue, with the U.S. accounting for 93% of Sublocade revenue.
The company brought in Pat Barry as the new Chief Commercial Officer (CCO) in May to oversee Indivior’s commercialization plan. Barry has worked in pharmaceuticals for over 30 years, with senior leadership positions with both Endo Pharmaceuticals and Sanofi (SNY). That should be an excellent addition to management.
As CEO Joe Ciaffioni said in the second-quarter conference call, this year is a transition year to get the company in a position to accelerate growth in 2026. This includes growing its injectable Sublocade product in the U.S. BMAT (buprenorphine medication-assisted treatment) market, generating increased cash flow through focused spending across its business, and growing its overall profitability.
Focused on three customers: Medicaid, Commercial, and the Criminal Justice system, it feels that the overall potential for Sublocade in the U.S. -- especially in the LAI (long-acting injectables) market, which only accounts for 8% of its total Sublocade revenue -- is tremendous.
Barry pointed out in the Q2 2025 conference call that although 60% of the patients served are commercial patients, they represent just 25% of the Sublocade volume. The CCO emphasized that the sales force will be focused on moving that percentage higher.
The Elephant in the Room
As mentioned earlier, the company resolved litigation in July 2020, agreeing to pay $600 million to federal and state authorities. This settlement was reached with several organizations, including the Department of Justice, following allegations that the company downplayed the risks of Suboxone for children to secure coverage for its product through the Massachusetts Medicaid program.
This settlement was on top of approximately $1.4 billion paid out by its former parent, Reckitt Benckiser. Indivior’s final payment of $200 million plus interest is due in December 2027. As of June 30, its total accrued litigation settlement expenses were $404 million. By the end of 2027, that will fall to zero. With $510 million in cash on its balance sheet, it should be able to make the final payment from its cash on hand.
Once this overhang goes away, the company’s financial position becomes much stronger.
The Bottom Line
All eight of the analysts covering Indivior stock rate it a Buy (4.88 out of 5), with a target price of $29.40, considerably higher than where it’s currently trading. If it continues to make progress on growing its U.S. business while maintaining overall financial discipline, that price target should increase in 2026.
The million-dollar question for anyone considering investing is whether it can generate enough cash flow from its business in the next few quarters to finance the development or acquisition of additional products beyond Sublocade down the road once the transformation is complete.
If it can, I don’t think there’s any question that an investment today will reap significant rewards over the next 3-5 years. With its operating income in the latest 12 months of $314 million, it’s never been higher, despite the litigation overhang.
Last November, Oaktree Capital Management, its largest investor with an 8.8% stake in the company, sent a letter to the board arguing that Indivior was pursuing a flawed strategy rather than focusing on Sublocade. Further, it did little to protect Sublocade’s competitive position, making a bad situation worse.
Ultimately, as part of Oaktree’s activism, Ciaffioni, who became a director last November, was made CEO in February. It is now on a better path to renewed growth and profitability.
I like its chances.
