MARKET REPORT: Indivior shares rise after £24m Suboxone handout

Indivior shares rose after the pharma firm agreed to pay £24m to settle claims over the marketing of its product Suboxone in the US.

The FTSE 250 company, which makes Suboxone to treat opioid addiction, was accused of using illegal tactics to shield it from generic competition.

The firm initially set aside £228m to cover claims from dozens of states, insurers and individuals.

In June, Indivior agreed to pay £83m to 41 states and the District of Columbia.

That left the group with £145m of the money it set aside.

The FTSE 250 company, which makes Suboxone to treat opioid addiction, was accused of using illegal tactics to shield it from generic competition

The £121m now left will be used to fund further settlements with individuals.

Indivior is preparing to go to court at the end of October over these claims, but the company does hope to reach a settlement before then.

Boss Mark Crossley said: ‘We remain focused on helping those suffering from substance use disorders and mental illness.

‘Resolving these legacy legal matters at the right value helps us further our mission for patients and creates greater certainty for our stakeholders.’

Analysts at Stifel said the £24m settlement was ‘lower than we were anticipating’.

Morgan Stanley analysts said: ‘We believe that a full settlement remains possible ahead of the trial, unlocking short-term upside for investors.’

Shares climbed 4pc, or 70p, to 1829p yesterday.

The FTSE 100 started the session on the front foot following six days of decline. But it later slid 0.06pc, or 4.6 points, to 7257.82. The FTSE 250 dropped 1.1pc, or 197.61 points, to 17898.99. Last week the blue-chip index fell 3.5pc as worries about rising interest rates, soaring inflation and the health of China’s economy plagued markets.

Oil majors rose despite the price of Brent crude edging lower. BP added 1pc, or 4.85p, to 478.3p and Shell gained 0.4pc, or 9.5p, to 2369.5p.

Stock Watch – Redx Pharma

 Shares in Redx Pharma rose as US regulators backed the biotech group’s development of an oral drug to treat a severe lung disease.

The FDA granted orphan drug designation – a measure aimed at providing firms with incentives to produce treatments that can prevent or diagnose a rare condition which affects less than 200,000 people in the US.

Redx hopes its drug Zelasudil will help those with idiopathic pulmonary fibrosis (IPF). Shares soared 12.8pc, or 3p, to 26.5p.

Retailers were back in fashion following Friday’s sell-off when official figures showed retail sales fell 1.2pc in July as wet weather took its toll on the High Street.

JD Sports – the self-styled ‘King of Trainers’ – climbed 0.4pc, or 1.4p, to 151.1p and bargain store B&M rose 0.9pc, or 5.2p, to 571.2p.

Tesco received a vote of confidence from analysts at UBS who maintained their ‘buy’ rating and target price of 300p, while also raising profit forecasts for Britain’s biggest supermarket.

Shares edged up 0.9pc, or 2.3p, to 252p.

Insurance giant Direct Line is reportedly on the cusp of poaching a chief executive from one of its rivals. Adam Winslow, boss of Aviva’s UK and Ireland general insurance division, is among those who could replace Penny James, according to Sky News.

Shares in Direct Line fell 1.4pc, or 2.2p, to 156.3p and Aviva sank 1.3pc, or 4.8p, to 378p.

Lee Tappenden, who has worked at Walmart and Asda, will take over at cookware retailer ProCook on September 18.

His appointment, announced at the start of July, comes as the group co-founder and chief executive Daniel O’Neill plans to move to a non-executive director role.

Shares steamed ahead 2.2pc, or 0.5p, to 23.3p.

Software business Idox bought the geospatial data specialist Emapsite in a deal worth up to £15.75m.

David Meaden, chief executive of Idox, said: ‘Emapsite is an important acquisition for Idox and one that strengthens our existing geographic information systems, mapping and data capabilities.’

Shares in Idox rose 2.3pc, or 1.4p, to 63p.

This post first appeared on Dailymail.co.uk