Introduction to Indivior PLC

Indivior PLC (LSE:INDV, NASDAQ:INDV) is a global pharmaceutical company specializing in treatments for substance use disorders (SUD), particularly opioid use disorder (OUD). With a strong focus on developing evidence-based treatments, Indivior aims to transform SUD from a global crisis to a recognized and treated chronic disease. The company's portfolio includes several key products, such as Suboxone Film and Sublocade, which are crucial in the fight against opioid addiction.

Recent Performance and Challenges

In recent financial reports, Indivior announced a solid performance for 2024, with total revenue increasing by 9% to $1.19 billion. This growth was largely driven by a 20% increase in sales of Sublocade, a long-acting treatment for opioid use disorder[1][2]. However, the company faces significant challenges in 2025, including a projected 17% decline in revenue due to intense generic competition for Suboxone Film and the discontinuation of Perseris, its schizophrenia drug[1].

Key Challenges:

• Generic Competition: Suboxone Film faces increasing competition from generic alternatives, which is expected to impact sales negatively.
• Discontinuation of Perseris: The decision to discontinue Perseris will further reduce revenue streams.
• Funding Challenges: The justice system, a key source of prescriptions for Sublocade, is experiencing funding challenges that could stall growth.

Strategic Moves to Offset Challenges

To address these challenges, Indivior is implementing cost-cutting measures, aiming to reduce expenses by over $100 million. Approximately $50 million of these savings will be reinvested in expanding its opioid treatment pipeline, demonstrating the company's commitment to innovation and growth[1].

Strategic Highlights:

• Cost Reductions: Over $100 million in cost savings to improve operational efficiency.
• Pipeline Expansion: $50 million reinvested in developing new treatments for opioid use disorder.
• Long-term Confidence: Despite short-term challenges, Indivior remains confident in Sublocade's long-term potential.

Stock Performance and Analyst Forecasts

Indivior's stock experienced a significant drop of 23% in early trading following the announcement of its 2025 performance expectations[1]. However, analysts have a more optimistic outlook for the stock's future. The average twelve-month stock price forecast is around $15.00, with some analysts predicting prices as high as $16.00[5].

Stock Forecast Highlights:

• Current Price Volatility: Indivior's stock is experiencing volatility, with a Fear & Greed Index indicating fear among investors[3].
• Analyst Forecasts: Average price target of $15.00, suggesting potential upside for investors.
• Long-term Potential: Despite short-term challenges, analysts see long-term growth potential in Indivior's portfolio.

Is Indivior PLC a Good Investment?

When considering whether Indivior PLC is the best small cap pharma stock to buy now, several factors come into play:

1. Innovation Pipeline: Indivior's focus on expanding its treatment pipeline for opioid use disorder positions it well for future growth.
2. Market Need: The ongoing opioid crisis ensures a consistent demand for effective treatments, making Indivior's products crucial.
3. Cost Efficiency: The company's efforts to reduce costs and reinvest in research and development are strategic moves to ensure sustainability.

However, investors must also consider the current challenges, including generic competition and funding issues in the justice system.

Conclusion

Indivior PLC presents a complex investment opportunity. While it faces significant short-term challenges, its long-term potential, driven by innovative products like Sublocade and a commitment to expanding its pipeline, is promising. Investors should weigh these factors carefully, considering both the risks and the potential for future growth in the pharmaceutical sector.