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Indivior
(NASDAQ:INDV)
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Rating:57Neutral
Price Target:
$39.00
▼(-3.75% Downside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by weak cash flow generation and a balance sheet constrained by negative equity, despite improved profitability. Offsetting these risks, the latest earnings call was constructive with raised 2026 guidance, strong SUBLOCADE momentum, and significant margin expansion. Technicals are mixed/neutral and valuation is moderate, providing neither a strong tailwind nor a major drag.
Positive Factors
SUBLOCADE Commercial Momentum
Sustained double-digit SUBLOCADE volume and revenue growth, plus rising new patient starts and prescriber counts, imply durable market leadership in OUD. Scale across nearly 200k treated patients improves payor negotiating leverage and creates a recurring revenue base that supports predictable cash flows over months.
Negative Factors
Weak Cash Generation
Negative operating and free cash flow despite recent profitable quarters indicates weak cash conversion and working-capital volatility. Over 2–6 months this constrains the firm's ability to self-fund R&D, integration costs or the announced dividend, increasing reliance on external financing or planned capital actions.
Read all positive and negative factors
Positive Factors
Negative Factors
SUBLOCADE Commercial Momentum
Sustained double-digit SUBLOCADE volume and revenue growth, plus rising new patient starts and prescriber counts, imply durable market leadership in OUD. Scale across nearly 200k treated patients improves payor negotiating leverage and creates a recurring revenue base that supports predictable cash flows over months.
Read all positive factors
Indivior (INDV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.51B
Dividend YieldN/A
Average Volume (3M)1.70M
Price to Earnings (P/E)13.7
Beta (1Y)0.69
Revenue Growth13.55%
EPS Growth305.85%
CountryUS
Employees833
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)2.84
Shares Outstanding118,013,650
10 Day Avg. Volume1,540,079
30 Day Avg. Volume1,702,991
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
$50.75Price Target Upside25.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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
40.52
Price Trends
39.42
Negative
36.88
Positive
35.08
Positive
Market Momentum
-0.39
Positive
43.68
Neutral
49.82
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 40.52 is above the 20-day moving average (MA) of 39.34, above the 50-day MA of 39.42, and above the 200-day MA of 35.08, indicating a neutral trend. The MACD of -0.39 indicates Positive momentum. The RSI at 43.68 is Neutral, neither overbought nor oversold. The STOCH value of 49.82 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 | $15.33B | 21.66 | 21.13% | ― | 34.42% | 102.44% | |
71 Outperform | $43.18B | 56.52 | 9.28% | ― | 4.33% | ― | |
63 Neutral | $916.44M | 18.45 | 15.96% | ― | 14.31% | 34.35% | |
60 Neutral | $5.52B | 36.48 | -326.75% | ― | 9.28% | 4917.17% | |
57 Neutral | $4.51B | 13.74 | -216.13% | ― | 13.55% | 305.85% | |
56 Neutral | $2.74B | -25.12 | -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
39.01
15.55
66.28%
NBIX
Neurocrine
152.72
19.82
14.91%
SUPN
Supernus Pharmaceuticals
48.27
5.58
13.07%
TEVA
Teva Pharmaceutical
36.77
18.91
105.88%
COLL
Collegium Pharmaceutical
28.23
-9.51
-25.20%
AMRX
Amneal Pharmaceuticals
18.15
8.70
92.06%
Indivior Corporate Events
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...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Indivior Eliminates Chief Scientific Officer Role, Realigns Leadership
Neutral
May 15, 2026
Indivior Pharmaceuticals, Inc. will eliminate the role of Chief Scientific Officer effective June 1, 2026, with current CSO Dr. Christian Heidbreder shifting to an advisory role on special projects reporting to the CEO through year-end and his emp...
Business Operations and StrategyStock Buyback
Indivior Announces $175 Million Accelerated Share Repurchase
Positive
May 4, 2026
On May 4, 2026, Indivior Pharmaceuticals, Inc. announced it had entered into a $175 million accelerated share repurchase agreement with Barclays Bank PLC under its existing $400 million buyback program, signaling confidence in its long-term strate...
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.