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Indivior
(NASDAQ:INDV)
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Rating:56Neutral
Price Target:
$35.00
▼(-2.70% Downside)
Action:Reiterated
Date:09/17/26
INDV’s score is held back primarily by financial quality concerns—especially negative TTM operating/free cash flow and a balance sheet constrained by negative equity—despite improved profitability. Technicals are also weak with bearish trend signals (below key moving averages, negative MACD). Offsetting these, valuation appears moderate (P/E ~12) and the latest earnings call outlined a potentially value-accretive merger with strong pro forma margins and defined cost synergies, though execution and concentration risks remain.
Positive Factors
SUBLOCADE IP and market position
Long-dated patent protection and manufacturing complexity can preserve SUBLOCADE’s commercial differentiation and reduce near-term generic pressure. This supports pricing power, sustained physician and payer adoption, and a durable foundation for investment in the company’s largest growth product.
Negative Factors
Weak cash conversion and negative equity
Negative operating and free cash flow despite positive TTM net income points to uneven earnings conversion and reduced self-funding capacity. Combined with a persistent equity deficit, this can limit financial flexibility and make the business more exposed when operating conditions or investment needs deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
SUBLOCADE IP and market position
Long-dated patent protection and manufacturing complexity can preserve SUBLOCADE’s commercial differentiation and reduce near-term generic pressure. This supports pricing power, sustained physician and payer adoption, and a durable foundation for investment in the company’s largest growth product.
Read all positive factors
Indivior (INDV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.23B
Dividend Yield22.77%
Average Volume (3M)1.89M
Price to Earnings (P/E)12.5
Beta (1Y)0.68
Revenue Growth13.55%
EPS Growth305.85%
CountryUS
Employees833
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.84
Shares Outstanding118,031,940
10 Day Avg. Volume1,930,335
30 Day Avg. Volume1,885,562
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-45.77
Price to Sales (P/S)3.62
P/FCF Ratio-47.71
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.50Price Target Upside26.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)4.04
Revenue Forecast (FY)$1.30B
Indivior Business Overview & Revenue Model
Company Description
Indivior Pharmaceuticals Inc. operates as a holding company, primarily engaged in the research, production, and distribution of buprenorphine-based prescription medications designed to treat opioid dependence. Its product lineup features key pharm...
How the Company Makes Money
Indivior makes money primarily by selling prescription medicines, with revenue recognized from product sales to wholesalers, specialty distributors, and other customers in markets where it has commercialization rights. The largest revenue stream i...
Indivior Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
Overall the call presents a constructive and optimistic view of the merger: management emphasized scale, a diversified portfolio (~$2.2B pro forma revenue), strong pro forma profitability (adjusted EBITDA $888M; ~41% margin), and $125M of near-term cost synergies, while retaining balance sheet strength and highlighting SUBLOCADE as a durable, large growth driver (~44% of revenue) supported by IP and commercial momentum. Noted risks include revenue concentration in SUBLOCADE, increased pro forma net debt (~$878M, ~1x leverage), absence of quantified revenue synergies, and standard integration and regulatory execution risks. On balance, the positives (scale, margins, synergies, product durability) outweigh the lowlights.Positive Updates
Pro Forma Scale and Revenue
Combined company pro forma net revenue of approximately $2.2 billion (trailing 12 months ended June 30, 2026), creating a scaled CNS leader across addiction, ADHD, depression, and Parkinson's disease.
Negative Updates
Concentration Risk Around SUBLOCADE
SUBLOCADE represents ~44% of pro forma revenue, creating revenue concentration risk if growth slows or competitive/market dynamics change.
Read all updates
Q2-2026 Updates
Positive
Negative
Pro Forma Scale and Revenue
Combined company pro forma net revenue of approximately $2.2 billion (trailing 12 months ended June 30, 2026), creating a scaled CNS leader across addiction, ADHD, depression, and Parkinson's disease.
Read all positive updates
Company Guidance
Management outlined detailed deal and financial guidance: an all‑stock, tax‑free merger of equals (1.5401 Indivior shares per Supernus share) with a pre‑closing $1.0B dividend, leaving Indivior holders ≈56.5% and Supernus ≈43.5% pro forma and an expected close in Q4 2026; combined board will be 4 Supernus / 4 Indivior (Tony Kingsley non‑exec chair), Jack Khattar will be CEO and the HQ will be Rockville. On a pro forma trailing‑12‑month basis (6/30/26) combined net revenue ≈ $2.2B, adjusted EBITDA ≈ $888M (≈41% margin) — which includes expected annual cost synergies of $125M to be realized within 12 months — pro forma net debt ≈ $878M (net leverage ≈1x) and roughly 215M shares outstanding. Standalone metrics cited: Supernus TTM revenue $830M, adj. EBITDA $150M (18% margin), cash ≈ $372M/no debt; Indivior TTM revenue $1.3B, adj. EBITDA $613M (46% margin), net debt $251M (net leverage ≈0.4x). SUBLOCADE is expected to be the largest contributor (~44% of pro forma revenue) with stable ~76% market share, record new patient starts, LAI penetration near 10%, and 12 Orange‑Book patents through 2031–2038 (additional filings could extend to 2042–2044). Management reiterated priorities to drive growth of key products (SUBLOCADE, Qelbree, ZURZUVAE, Gocovri, Onapgo), continue mid/late‑stage CNS/women’s‑health BD, maintain disciplined leverage (roughly 2.5–3x guideline for future transactions), and use the combination to accelerate profitability, cash flow and BD firepower.Indivior Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.24B | 1.19B | 1.09B | 901.00M | 791.00M |
| Gross Profit | 1.12B | 993.00M | 957.00M | 919.00M | 750.00M | 664.00M |
| EBITDA | 432.00M | 304.00M | 84.00M | -99.00M | -46.00M | 238.00M |
| Net Income | 355.00M | 210.00M | 2.00M | -129.00M | -44.00M | 205.00M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.20B | 1.32B | 1.76B | 1.78B | 1.83B |
| Cash, Cash Equivalents and Short-Term Investments | 222.00M | 195.00M | 320.00M | 410.00M | 897.83M | 1.10B |
| Total Debt | 509.00M | 351.00M | 375.00M | 283.00M | 277.00M | 286.00M |
| Total Liabilities | 1.44B | 1.30B | 1.67B | 1.96B | 1.73B | 1.63B |
| Stockholders Equity | -208.00M | -98.00M | -348.00M | -191.00M | 51.28M | 203.00M |
Cash Flow | ||||||
| Free Cash Flow | -111.00M | -94.00M | 5.00M | -353.00M | -9.00M | 319.00M |
| Operating Cash Flow | -40.00M | -27.00M | 36.00M | -300.00M | -4.00M | 353.00M |
| Investing Cash Flow | -71.00M | -66.00M | 69.00M | -95.00M | -222.00M | -14.00M |
| Financing Cash Flow | -174.00M | -30.00M | -102.00M | -64.00M | -101.00M | -94.00M |
Indivior Technical Analysis
Negative
35.97
Price Trends
36.92
Negative
37.83
Negative
35.73
Negative
Market Momentum
-0.13
Negative
45.60
Neutral
53.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDV, the sentiment is Negative. The current price of 35.97 is above the 20-day moving average (MA) of 35.28, below the 50-day MA of 36.92, and above the 200-day MA of 35.73, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 45.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDV.
Indivior Risk Analysis
Indivior disclosed 22 risk factors in its most recent earnings report. Indivior reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Indivior Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $14.42B | 19.95 | 21.13% | ― | 34.42% | 102.44% | |
62 Neutral | $710.36M | 14.50 | 15.96% | ― | 14.31% | 34.35% | |
61 Neutral | $46.48B | 65.54 | 9.18% | 5.80% | 4.40% | ― | |
58 Neutral | $6.43B | 40.46 | -326.75% | ― | 9.28% | 4917.17% | |
56 Neutral | $4.23B | 12.52 | -216.13% | 22.77% | 13.55% | 305.85% | |
53 Neutral | $2.51B | -22.15 | -10.42% | ― | 24.85% | -264.42% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
INDV
Indivior
35.38
12.21
52.70%
NBIX
Neurocrine
140.71
3.68
2.69%
SUPN
Supernus Pharmaceuticals
42.18
-6.17
-12.76%
TEVA
Teva
39.31
19.30
96.45%
COLL
Collegium Pharmaceutical
21.84
-12.77
-36.90%
AMRX
Amneal Pharmaceuticals
20.07
9.68
93.17%
Indivior Corporate Events
DividendsM&A Transactions
Indivior Announces Special Dividend Ahead of Supernus Merger
Positive
Sep 17, 2026
On September 17, 2026, Indivior’s board declared a special cash dividend of $8.13 per share for shareholders of record as of October 30, 2026, and for certain equity award holders upon vesting. The dividend is contingent on the closing of In...
Business Operations and StrategyRegulatory Filings and Compliance
Indivior accelerates transition from RB manufacturing agreement
Neutral
Sep 15, 2026
On September 9, 2026, Indivior UK Limited and Reckitt Benckiser Healthcare (UK) Limited agreed to a Deed of Variation and Termination that accelerates the end date of their Copacker Supply Agreement for SUBOXONE and SUBUTEX Tablets to January 15, ...
Business Operations and StrategyDividendsM&A Transactions
Indivior and Supernus announce tax-free merger of equals
Positive
Aug 3, 2026
Indivior Pharmaceuticals, Inc. is a biopharmaceutical company focused on central nervous system disorders, particularly addiction treatment, while Supernus Pharmaceuticals, Inc. develops and commercializes CNS therapies in areas such as ADHD, post...
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
Indivior boosts outlook amid record SUBLOCADE-driven growth
Positive
Aug 3, 2026
Indivior reported on August 3, 2026, that second-quarter 2026 net revenue rose 14% year-on-year to $343 million, driven by a 21% increase in SUBLOCADE sales to a record $253 million and strong U.S. volume growth. The company posted record GAAP net...
Business Operations and StrategyExecutive/Board ChangesDividendsM&A TransactionsPrivate Placements and Financing
Indivior Announces Merger Agreement to Acquire Supernus
Positive
Aug 3, 2026
On August 1, 2026, Indivior and Artemis Merger Sub entered into a merger agreement with Supernus under which Merger Sub will be folded into Supernus, leaving Supernus as a wholly owned subsidiary of Indivior and creating a combined company renamed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.