Flying solo isn't always easy, as recent Reckitt Benckiser spinoff Indivior is learning firsthand. The drugmaker reported an 8% decline in 2014 revenues--and the pain won't end there.
|Indivior CEO Shaun Thaxter|
The addiction drug-focused company posted net revenues of $1.1 billion last year--down from $1.2 billion the year prior--and it's forecasting another drop this year as competition for heroin-addiction med Suboxone ramps up. Indivior's top line will sink to between $850 million to $880 million in 2015, CEO Shaun Thaxter said Wednesday.
It's not much of a surprise considering the struggles Suboxone has been through lately--struggles that helped prompt Reckitt's pharma spinoff in the first place. Back in early 2013, the FDA rejected the British consumer giant's petition to block rival copies of the therapy. The agency cleared two generics, prompting Reckitt to stop producing its Suboxone tablet versions and restrict sales to its film-strip format.
U.S. market share for Suboxone Film--which generates 80% of Indivior's business, Reuters notes--is now down to 58%, down from 67%, despite growing market demand.
But Indivior is confident that forthcoming products--such as Naloxone, which it's prepping for launch in 2016--can help right the ship. "Although we have near-term competitive pressures like any company, we'll work through these and have a very attractive growth profile in the future," Thaxter told FiercePharma in January.
Meanwhile, Reckitt isn't doing so hot itself in the sales department, the Financial Times reports. The company launched an organizational revamp aimed at streamlining its business and wringing £100 million to £150 million out of yearly costs. The company also took its annual growth target down a notch, after recording a 5% sales slump to £8.8 billion. "I don't expect a marked improvement this year," CEO Rakesh Kapoor said.