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Indivior shares fall by 70% after allegations of fraud

Published on 10/04/19 at 11:18am
Image Credit: Jr de Barbosa

Shares in London-listed Indivior plummeted this morning after US Federal prosecutors said the British drugmaker had deceived doctors as to the dangers of its Suboxone opioid addiction treatment.

Indivior were alleged to have used their ‘Here to Help’ program “to connect patients to doctors it knew were prescribing Suboxone and other opioids to more patients than allowed by federal law, at high doses, and in suspect circumstances.”

The indictment, filed in Virginia, said patients were pointed towards doctors who prescribed opioids in a “careless and clinically unwarranted manner” as part of an effort to boost sales.

The indictment contains 28 counts of felony including one count of conspiracy to commit mail, wire and health care fraud; one count of health care fraud; four counts of mail fraud; and twenty-two counts of wire fraud.

In a statement to the stockmarket, Indivior said the allegations were “based on actions that occurred almost exclusively prior to Indivior becoming an independent company in its demerger from Reckitt Benckiser Group at the end of 2014.”  

Shares in Indivior fell by as much as 70% on announcement of the news. Shares in the Reckitt Benckiser Group were down 6%.

The Reckitt Benckiser Group was clear in stating: “This indictment is not against RB Group or any other group company.” Meanwhile Indivior said the allegations were “unsupported by the facts and the law.”

Louis Goss

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