LONDON (Reuters) - Newly listed pharmaceuticals company Indivior Plc (L:INDV) posted an 8 percent fall in 2014 revenues and forecast a drop this year as competition for its addiction treatment drug eroded its market share and drove down prices.
The firm, which was spun off from consumer goods giant Reckitt Benckiser (L:RB) in December, lost its exclusive patent for the Suboxone opiate addiction drug in 2009 and the medicine has gradually lost market share to competitors.
Net revenues of $1.1 billion (£720 million) in 2014 were down from $1.2 billion in 2013. Operating profit fell 16 percent to $586 million from $695 million, reflecting the firm's decision to cut prices to defend market share.
Indivior shares were down 10 percent at 154.5 pence by 0854 GMT, after touching a seven-week low of 132.7 pence.
Chief Executive Shaun Thaxter said 2015 revenues were likely to fall to $850 million to $880 million.
"The outlook for 2015 is very uncertain as to the timing, extent and impact of tablet price erosion," he said.
The U.S. market share for Suboxone Film, which is sold on prescription and administered orally, fell to 58 percent from 67 percent even though overall demand in the market, which provides four-fifths of Indivior's business, grew 13 percent.
"The underlying growth in the market is a very healthy low double digit... We have a very good track record of expanding the number of doctors providing the treatment," Thaxter said.
Finance chief Cary Claiborne said new treatments under development would begin to generate revenue in 2016.
Naloxone, an opioid overdose treatment administered nasally, is due to be launched in 2016. Thaxter said the treatment would be distributed to police and other first responders to help prevent some of the 20,000 deaths a year caused by overdoses.
An injectable form of the opiate addiction treatment is due to be launched in 2017.