Indivior to Divest Interest in China
Slough, UK and Richmond, VA, February 4, 2019 - Indivior PLC (LON: INDV) (“Indivior” or the “Company”) today announced that it has entered into a definitive agreement to divest its rights related to the Sai Bo Song™ (buprenorphine, naloxone) tablet in China to Zhejiang Pukang Biotechnology Co., Ltd. (“Pukang”) for a total consideration of up to $122.5 million
Pukang is a privately held company focused on vaccines and headquartered in Hangzhou, China that is seeking to diversify into small molecule therapies.
“The divestiture of the Sai Bo Song™ tablet in China is consistent with Indivior’s efforts to prioritize efforts on the long-term growth opportunities with our new depot assets, SUBLOCADE™ and PERSERIS™,” said Shaun Thaxter, Chief Executive Officer of Indivior. “This transaction helps us focus our resources on the highest return opportunities in the regions we know best, while ensuring patients in China have access to an important and transformational treatment.”
Thaxter continued, “With its knowledge of the local environment and scientific heritage, we believe Pukang is well suited to advance the science of addiction treatment in China.”
Terms of the Transaction
The transaction is subject to the designation of the Sai Bo Song™ tablet as a Class II psychotropic drug by Chinese regulators, Chinese outbound investment approvals, and other closing conditions.
The foregoing regulatory hurdles will occur throughout 2019 and the transaction is targeted to close by end of Q4, 2019.
Terms of the transaction include a signing payment of $1.5 million, $3.5 million upon designation of the Sai Bo Song™ tablet as a Class II psychotropic drug by Chinese regulators, and $12.5 million upon closing of the transaction, for a total of $17.5 million in near-term payments. Indivior is also entitled to royalties and may receive an additional $105.0 million based on certain technical assistance to be provided by Indivior to Pukang and the achievement of certain sales milestones during a ten-year period following the first commercial sale of the product in China, for a total consideration of up to $122.5 million.
Advisors
Torreya is acting as financial advisor to Indivior on the transaction. Covington & Burling LLP is acting as its legal advisor.
About Indivior
Indivior is a global specialty pharmaceutical company with a 20-year legacy of leadership in patient advocacy and health policy while providing education on evidence-based treatment models that have revolutionized modern addiction treatment. The name is the fusion of the words individual and endeavour, and the tagline “Focus on you” makes the Company’s commitment clear. Indivior is dedicated to transforming addiction from a global human crisis to a recognized and treated chronic disease. Building on its global portfolio of opioid dependence treatments, Indivior has a strong pipeline of product candidates designed to both expand on its heritage in this category and address other chronic conditions and cooccurring disorders of addiction, including alcohol use disorder and schizophrenia. Headquartered in the United States in Richmond, VA, Indivior employs more than 800 individuals globally and its portfolio of products is available in over 40 countries worldwide. Visit www.indivior.com to learn more.
Forward thinking statements
This press release contains certain statements that are forward-looking and which should be considered, amongst other statutory provisions, in light of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements involve risk and 6 uncertainty as they relate to events or circumstances that may or may not occur in the future. Actual results may differ materially from those expressed or implied in such statements because they relate to future events. Forward-looking statements include, among other things, statements regarding the Indivior Group’s financial guidance for 2019 and its medium- and long-term growth outlook, its operational goals, its product development pipeline and statements regarding ongoing litigation.
Various factors may cause differences between Indivior's expectations and actual results, including: factors affecting sales of Indivior Group’s products; the outcome of research and development activities; decisions by regulatory authorities regarding the Indivior Group’s drug applications; the speed with which regulatory authorizations, pricing approvals and product launches may be achieved; the outcome of post approval clinical trials; competitive developments; difficulties or delays in manufacturing; the impact of existing and future legislation and regulatory provisions on product exclusivity; trends toward managed care and healthcare cost containment; legislation or regulatory action affecting pharmaceutical product pricing, reimbursement or access; claims and concerns that may arise regarding the safety or efficacy of the Indivior Group’s products and product candidates; risks related to legal proceedings, including the ongoing investigative and antitrust litigation matters; the Indivior Group’s ability to protect its patents and other intellectual property; the outcome of patent infringement litigation relating to Indivior Group’s products, including the ongoing ANDA lawsuits; changes in governmental laws and regulations; issues related to the outsourcing of certain operational and staff functions to third parties; uncertainties related to general economic, political, business, industry, regulatory and market conditions; and the impact of acquisitions, divestitures, restructurings, internal reorganizations, product recalls and withdrawals and other unusual items.
This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or otherwise acquire or dispose of shares in the Company to any person in any jurisdiction to whom it is unlawful to make such offer or solicitation.
Media Contacts
US
IndiviorMediaContacts@indivior.com
+1 804-594-0836
UK
Tulchan Communications
+44 207-353-4200
Investor Contact
Jason Thompson
Indivior Vice President, Investor Relations
+1 804-402-7123
Jason.Thompson@indivior.com