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UK's Indivior shares jump over 13 percent on higher financial year guidance

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UK's Indivior shares jump over 13 percent on higher financial year guidance

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(Reuters) – Shares of Indivior PLC <INDV.L> jumped more than 13 percent on Thursday after the UK drug maker raised its 2017 profit and revenue forecasts, on the back of expected lower legal and research expenses. The maker of drugs that treat opioid addiction raised its full-year revenue forecast to a range of $1.09 billion to $1.12 billion, from its previous guidance of $1.05 billion to $1.08 billion. The company also said it expected adjusted net income of $265 million to $285 million, above its previous range of $200 million to $220 million. Indivior’s shares were up 12.1 percent at 355.6 pence as of 0842 GMT, after the company reported a 4-percent increase in revenue for the first half, driven by higher sales in the United States of an oral version of a drug used to treat patients addicted to heroin and other painkillers. Revenue rose to $553 million for the six months ended June 30, from $531 million a year ago. Operating profit was up at $244 million, from $198 million a year earlier. Sales of Suboxone Film, the dissolvable oral strip form of the anti-addiction drug, were higher in the reporting period, although its market share fell slightly from a year ago, hurt by competition from generic versions. In the United States, its biggest market, growth was also driven by a regulatory change to allow qualified physicians to treat up to 275 patients from 100 patients at a time. The company said its research and development expenses fell by 32 percent to $19 million in the second quarter, while it also recorded a $25 million one-time charge to settle an antitrust litigation with Amneal Pharmaceuticals LLC. Last year, the company incurred legal costs of $220 million to defend itself in lawsuits, hurting profits.

(Reporting by Justin George Varghese in Bengaluru; Editing by Biju Dwarakanath)
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