Indivior shares skyrocketed on Tuesday morning after the pharmaceutical group said it was considering transferring its primary listing to New York.
The drugmaker believes the move would attract more American investors, who own nearly half its share capital, by elevating its profile among US capital markets for providing addiction treatments.
Indivior said the potential switch reflected the ‘current and future growth opportunities’ for its medicines, and would enable it to be potentially included on prominent US stock market indices.
Pondering new move: Indivior believes transferring its primary listing to Wall Street would elevate its profile among US capital markets for providing addiction treatments
Indivior shares jumped 16 per cent to £15.73 by the late morning, making them by far the FTSE 250 Index’s biggest riser.
Based in Virginia, Indivior produces medicines for people suffering from conditions like schizophrenia, as well as alcohol and opioid abuse.
The company must receive support from at least three-quarters of shareholders for the proposal to be accepted.
If that happens, the business will follow plumbing products distributor Ferguson, building materials supplier CRH Holdings, and mining group AngloAshanti Gold in recently changing their primary listing to New York.
Pearson is also under pressure from its biggest investor to make the switch, while travel operator Tui plans to have a sole listing on the Frankfurt Stock Exchange.
In a further blow to London’s reputation as a financial centre, Softbank chose to list semiconductor giant Arm Holdings on Wall Street last year despite extensive lobbying by the UK Government.
Russ Mould, investment director at AJ Bell, said: ‘The more companies that follow this path, the harder it will be to attract new names to the UK.’
The UK capital is struggling to attract new listings amid hefty foreign competition, issues with corporate governance rules and economic uncertainty.
Investors also bemoan a lack of liquidity, which typically keeps share prices depressed.
Indivior’s announcement came alongside the publication of its annual results, which showed the group’s net revenue jumped by 21 per cent to $1.1billion in 2023.
Trading was driven by strong demand in the US for the firm’s Sublocade and Perseris products and buprenorphine medication-assisted treatments.
For the current financial year, the business forecasts net revenue of $1.24billion to $1.33billion and adjusted operating profits of between $330million and $380million.
And over the longer term, Indivior expects long-term growth to be supported by legislation aimed at combatting the US opioid crisis.
