Indivior gets FDA approval for Sublocade, Redefine rebrands as RDI REIT

London open

The FTSE 100 is expected to open flat on Friday, having closed down 0.9% at 7,326.67 on Thursday.

Stocks to watch

Indivior has received approval from the US drug regulator to market its once-monthly injectable treatment for moderate to severe opioid use disorder, which analysts believe could lift company sales north of $1bn. The US Food and Drug Administration has approved what Indivior has branded Sublocade, an extended-release form of buprenorphine, meaning it is expected to be available to patients in the US in the first quarter of 2018.

Redefine International marked a “significant event” in its history on Friday, as it changes its name rebranded to RDI REIT - an acronym for Real Estate Diversified Income REIT. The FTSE 250 company said the new brand was synonymous with its intention to become the UK's leading income-focussed REIT, delivering “superior, sustainable and growing” income for shareholders, supported by a diversified portfolio and tenant base.

Barclays has sold a 7.0% stake in Barclays Africa Group Limited to bring down its total shareholding to 14.9%. The transfer, which is expected to occur on 5 December 2017, will increase Barclays' pro-forma CET1 ratio as at 30 September by 12 basis points.

Newspaper round-up

Raising productivity is a far bigger economic challenge for Britain than Brexit, senior officials at the Office for Budget Responsibility said yesterday as they hit back at allegations of bias. Leave supporting politicians have accused the office of producing excessively gloomy forecasts that cast Brexit in a bad light but Robert Chote, chairman of the government’s fiscal watchdog, said the claims were “without any foundation whatsoever”. - The Times

The world’s major oil producers have extended production cuts through to the end of 2018, in a bid to tackle a global glut of crude and keep prices buoyant. Members of Opec, the oil cartel, and other major producers including Russia agreed that the curbs, which started in January and have lifted a barrel of Brent crude from $40 to $50 last year to more than $60 now, will continue for a further nine-months. - Guardian

Britain cannot afford to borrow more without jeopardising the country’s financial stability, a senior Bank of England official has warned. Richard Sharp said the Government had already borrowed an extra £1 trillion since the 2008 financial crisis. - Telegraph

Labour has accused the transport secretary of misleading parliament over the early termination of the East Coast rail franchise as it emerged that the operator, Stagecoach, had been due to pay the Treasury more than £2bn in the final four years of its contract. A new rail strategy announced by Chris Grayling on Wednesday contained plans to replace the Virgin Trains East Coast (Vtec) contract running to September 2023 with a model of a partnership between track and train operators from 2020. - Guardian

The London Stock Exchange has been forced to set out the rationale for the departure of chief executive, Xavier Rolet, citing his “operating style” and questions from shareholders about how long he intended to stay. The exchange provided the explanation in a 20-page circular setting the date for the shareholders’ meeting demanded by an activist investor which wants to oust the company’s chairmanover his handling of Rolet’s departure. - Guardian

British Airways owner IAG is reportedly considering once again bidding for Austrian airline Niki, as Lufthansa faces pushback from competition authorities over its purchase. Lufthansa signed a €210m (£184m) deal to buy half of the assets of collapsed carrier Air Berlin in October, which included the Niki and LG Walter businesses, together with around 20 planes. - Telegraph

US close

Wall Street continued to push higher on Thursday, amid greater optimism over the likelihood of US tax reforms and the potential impact they might have on stocks.

The Dow Jones Industrial Average finished up 1.39% at 24,272.35 and the S&P 500 added 0.82% to 2,647.58, with the Nasdaq 100 ending the session 0.86% firmer at 6,365.56.

Investors spent much of the day waiting for a final vote on the Republicans' tax bill, which could take place later on Thursday evening.

“The Senate is on track to pass its version of tax reform later today or Friday,” noted economists at Oxford Economics.

“The next step would be to reconcile differences with the House version passed earlier this month.

“Tax reform has gained momentum and we think the odds that legislation will pass before year end have increased to 60-70%.”

The Oxford Economics team did not one possible wrinkle being that at least one key Republican vote could hinge on the passage of legislation to shore up the Affordable Care Act.