Oregon-based Stonepine Capital Management disclosed a sale of 250,000 shares of Indivior PLC, reducing its exposure by approximately $2.75 million. This transaction was reported in a Securities and Exchange Commission (SEC) filing dated November 13, reflecting activity during the third quarter of the fiscal year.
Following the sale, Stonepine's remaining stake in Indivior stands at 100,000 shares, carrying a market value of $2.41 million as of the end of the quarter. This adjustment represents a decline from the fund's previous exposure, with Indivior shares now composing 1.96% of Stonepine's assets under management (AUM), down from 5.06% in the prior quarter.
The trade appears to be a strategic portfolio decision amid Indivior's remarkable stock performance. The firm's shares closed at $36.21 on the preceding Friday, marking a 194% increase over the last year, significantly outpacing the approximately 15% return of the S&P 500 index in the same timeframe.
Beyond Indivior, Stonepine's leading holdings include Vaxxinity (NASDAQ:VSTM) valued at $23.58 million, accounting for 19.17% of the fund's assets; ADMA Biologics (NASDAQ:ADMA) with $10.83 million (8.81%); Eton Pharmaceuticals (NASDAQ:EOLS) at $9.43 million (7.67%); Zavante Therapeutics (NASDAQ:ZVRA) holding $7.70 million (6.26%); and Nektar Therapeutics (NASDAQ:NKTR) valued at $4.84 million (3.93%).
Indivior PLC is a specialty pharmaceutical company primarily focused on developing and marketing buprenorphine-based prescription medications aimed at addressing opioid dependence. The company offers a portfolio targeting substance use disorders, opioid overdose, and schizophrenia treatment. Key products include SUBLOCADE, SUBUTEX PRO, SUBOXONE, OPVEE, and PERSERIS.
The company's business model centers on generating revenue through sales of branded pharmaceutical products, particularly long-acting injectable therapies and sublingual formulations designed for opioid use disorder and related behavioral health conditions. Its principal clients encompass healthcare providers, treatment centers, and government agencies in both domestic and international markets committed to tackling opioid addiction and associated mental health disorders.
Recent operational indicators suggest Indivior is gaining momentum. In its latest quarterly report, the company posted revenues of $314 million, propelled by a 15% year-over-year growth in SUBLOCADE sales to $219 million. Adjusted EBITDA for the quarter rose 14% to $120 million, confirming improving profitability.
Supporting this positive trajectory, Indivior's management upgraded its full-year 2025 financial outlook, projecting revenues between $1.18 billion and $1.22 billion alongside adjusted EBITDA reaching as high as $420 million. The strategy includes implementing cost-saving measures expected to cut operating expenses by at least $150 million annually from the following year.
Within this context, Stonepine Capital's decision to reduce its Indivior holding is understood less as a reflection of diminished confidence and more as prudent portfolio management amid substantial gains. Despite trimming its stake, Indivior remains a notable exposure for Stonepine relative to other investments, underscoring its continued significance in the fund's strategy.
Looking ahead, the sustainability of Indivior's strong performance will depend on maintaining growth momentum, exercising cost discipline, and executing operational plans effectively beyond the near term. The stock's current valuation already incorporates much of the turnaround progress, shifting future returns' emphasis from recovery prospects to consistent financial performance and execution.
Key Points:
- Stonepine Capital Management sold 250,000 shares of Indivior, reducing its holdings by approximately $2.75 million.
- Indivior's stock has surged 194% in the past year, driven by strong revenue growth and improved earnings.
- Management raised 2025 guidance, projecting revenues up to $1.22 billion and adjusted EBITDA as high as $420 million while planning significant operating cost reductions.
Risks and Uncertainties:
- Future returns depend on sustained operational growth and effective cost management beyond the current year.
- The stock’s elevated valuation may limit upside potential if execution falters relative to expectations.
- Exposure concentration within small and mid-cap biotechnology firms like Indivior could pose portfolio risk.