FTSE 250 movers: Indivior hammered after warning; Spoons gets frothy
A sharp fall in Indivior shares pulled the FTSE 250 index lower on Wednesday after the company issued a profit warning due to a slower than expected launch of a new product and changes in the US market for its main money-spinner, including challenges from a rival generic treatments.
On 15 June, rival Dr Reddy's Laboratories won approval from the US drug regulator for its generic version of Indivior's Suboxone Film for the treatment of opioid addiction and said it planned a launch imminently.
The company applied for an injunction against Dr Reddy's to stop it from launching its generic version, pending the outcome of the recently filed litigation by the UK company related to its US patent number 9,931,305, but Indivior now "seeing the market impact" of Dr Reddy's generic sublingual film sold into the US market. But it does not know the exact quantity of product sold prior to the issuance of a temporary restraining order.
Until the impact of the rival launch is "better understood", Indivior said it now cannot reliably provide updated guidance, retracting the previously indicated expected revenue of $1.13-1.17bn and net profit of $280-320m.
To make matters worse, Numis downgraded its stance on the stock to 'hold' from 'buy' on the back of the warning.
Travel company Thomas Cook saw its shares fly lower after the company admitted a data breach exposed the names, email addresses and flight details of a number of customers.
A Norwegian security researcher discovered it was possible to retrieve the data using just a reference number, after booking a flight through the Cook-owned travel agency.
TP Icap shares were still under the cosh after the ousting of the company's CEO on Tuesday and a warning on rising costs and lower savings targets.
The company, formed from the £1.6bn merger of Tullett Prebon and Icap two years ago, added that the synergy savings target from the deal would be cut to £75m from £100m
Equiniti shares were also taking a beating from investors after yesterday's long and severe note from Peel Hunt calling the stock "materially overvalued using multiple methodologies".
Pub group JD Wetherspoon fizzed higher after reporting a jump in like-for-like sales in the 10 weeks to 8 July and saying results for the year should be in line with previous expectations. Further assistance came via an upgrade from broker Peel Hunt.
Builders' merchant Grafton Group was higher as it posted a rise in first-half revenue thanks to the warm weather.
Market Movers
FTSE 250 (MCX) 20,603.60 -1.19%
Wetherspoon (J.D.) (JDW) 1,305.00p 4.90%
Hikma Pharmaceuticals (HIK) 1,524.00p 3.67%
Superdry (SDRY) 1,373.00p 2.16%
Grafton Group Units (GFTU) 821.00p 1.99%
Clarkson (CKN) 2,358.23p 1.87%
Contour Global (GLO) 248.00p 1.64%
Softcat (SCT) 771.74p 1.41%
Fisher (James) & Sons (FSJ) 1,774.00p 1.37%
Travis Perkins (TPK) 1,404.50p 1.26%
Daejan Holdings (DJAN) 5,760.00p 1.05%
FTSE 250 - Fallers
Indivior (INDV) 253.60p -32.93%
Thomas Cook Group (TCG) 98.85p -6.75%
Ferrexpo (FXPO) 163.25p -6.74%
Kaz Minerals (KAZ) 795.60p -5.73%
TP ICAP (TCAP) 254.10p -5.64%
Playtech (PTEC) 491.80p -4.76%
Alfa Financial Software Holdings (ALFA) 154.20p -4.46%
Equiniti Group (EQN) 210.50p -4.32%
Sophos Group (SOPH) 486.54p -3.85%
Cairn Energy (CNE) 237.40p -3.81%