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Indivior (INDV) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. Indivior disclosed 22 risk factors in its most recent earnings report. Indivior reported the most risks in the “Finance & Corporate” category.

Risk Overview Q4, 2023

Source: the company's latest filing for the period ended Dec 31, 2023, filed Mar 06, 2024

Risk Distribution
22Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

Indivior disclosed risks per quarterNo. of Risks22Q4Showing: Q4, 2023
Risks removedRisks addedRisks changedIndivior Risk Factors
No changes from previous report

Risk Highlights Q4, 2023

Main Risk Category
Finance & Corporate
With 15 Risks
Number of Disclosed Risks
22
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Dec 2023
Number of Risk Changed
0
S&P 500 Average: 1

Risk Word Cloud

risk factors—we are currently, in the past have been, and in the future may be, subject to substantial litigation and ongoing litigation that could cause us to incur significant legal expenses, divert management’s attention, and result in harm to our business.”risk factors—risk factors—we are currently, in the past have been, and in the future may be, subject to substantial litigation and ongoing litigation that could cause us to incur significant legal expenses, divert management’s attention, and result in harm to our business.”ongoing litigationfinancial statements—audited consolidated financial statements—financial statements—risk factors—we are currently, in the past have been, and in the future may be, subject to substantial litigation and ongoing litigation that could cause us to incur significant legal expenses, divert management’s attention, and result in harm to our business.”subject to substantial litigationrisk factors—we are currently, in the past have been, and in the future may be, subject to substantial litigation and ongoing litigation that could cause us to incur significant legal expenses, divert management’s attention, and result in harm to our business.”harm to our businessfinancial statements—audited consolidated financial statements—financial statements—audited consolidated financiaitem 3.d—risk factors—most of our pharmaceutical pipeline relies on collaborations with third parties, which may adversely affect the development and sale of our products.”sale of our productsacquisition of opiant”.acquisition of opiant”information on the company—b. business overview background—8. intellectual propertybusiness overview background—8. business combinations.”),business combinations

Risk Factors Full Breakdown - Total Risks 22

Accounting & Financial Operations5 | 22.7%
  • Accounting & Financial Operations - Risk 1
    Cash flow

    The following table summarizes the principal components of our cash flows for the periods under review: For the years endedDecember 31,(in millions)202320222021Net cash (outflow)/inflow from operating activities(315)(4)353 Net cash outflow from investing activities(98)(223)(14)Net cash outflow from financing activities(46)(100)(94)Exchange difference on cash and cash equivalents1 (1)(1)Net (decrease)/increase in and cash equivalents $(458)$(328)$244

  • Accounting & Financial Operations - Risk 2
    Net cash (used in)/provided by operating activities

    The net cash outflow from operating activities was $315 million in 2023, a decrease of $311 million, compared to the net cash outflow of $4 million in 2022. The decrease was primarily due to litigation settlement outflows of $610 million ,partially offset by increased accruals for government rebates and trade payables. The litigation settlement related outflows include the Antitrust MDL settlement payment of $103 million with States, transfer of $415 million into an escrow account for the settlement with the Antitrust MDL end payors and direct purchasers, subject to final court approval, settlement payments of $24 million for intellectual property-related and other legal matters, in addition to the Group's previously scheduled litigation settlement payments totaling $68 million for the Department of Justice (DOJ), Reckitt Benckiser (RB) and Dr. Reddy's Laboratories (DRL) matters. Refer to "

  • Accounting & Financial Operations - Risk 3
    Financial Statements—Audited Consolidated Financial Statements—

    Financial Statements-Audited Consolidated Financial Statements-

  • Accounting & Financial Operations - Risk 4
    Borrowings and other obligations

    As of December 31, 2023, the Group's gross borrowings under its Term Loan were $239 million. The table below sets out the current and non-current obligations of the Term Loan as presented in the balance sheet as of December 31, 2023, and December 31, 2022: Term loan (in millions)Dec 312023Dec 312022Term loan – current(3)(3)Term loan – non-current(236)(237)Total term loan $(239)$(240)________________* Total term loan borrowings reflect the principal amount drawn net of debt issuance cost s of $5 million in 2023 and $6 million in 2022.

  • Accounting & Financial Operations - Risk 5
    . Financial Statements—

    Financial Statements-

Debt & Financing5 | 22.7%
Corporate Activity and Growth5 | 22.7%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.