April 15, 2019 / 10:06 AM / 5 months ago

BUZZ-Indivior: $3 bln U.S. fine may reduce - Bernstein

** British drugmaker Indivior’s shares up 14.5 pct to 40.3p

** U.S. DoJ indicted Indivior for illegally increasing prescriptions for its opioid addiction treatment Suboxone and demanded at least $3 bln in fines; stock sank ~72 pct on Thursday

** Suboxone Film generated $2.9 bln in total in the investigated years (2010-2014) - This suggests that the $3 bln headline fine is extremely aggressive, and there is potential for it to be reduced: Bernstein

** Bernstein: With respect to timings, precedent cases suggest that a final decision is unlikely to be reached very quickly, given it involves lengthy negotiations between the parties

** In 2012, GSK was fined $3 bln on 3 of its best-selling drugs that together generated more than $25 bln in sales during the years covered by the settlement (Wellbutrin and Paxil from 1999-2003, Avandia from 2001-2007)

** In 2013, J&J was fined $2.2 bln fine for improperly promoting its antipsychotic drug Risperdal between 1999-2005; drug had sales of over $18 bln in the period

** Bernstein expects the final court decision to take up to 2 years before a final verdict is made

** Stock lost over half a billion pounds in market value on Thursday; Indivior, which was valued at 3 bln pounds a year ago, is now valued at 257 mln pounds ($1 = 0.7637 pounds) (Reporting By Justin George Varghese in Bengaluru)

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