Pharmaceutical company Indivior has decided to delist from the London Stock Exchange, effective July 25, while maintaining its primary listing on the Nasdaq. The move is aimed at reducing costs and aligning with its U.S.-centric business model. Indivior, known for its opioid addiction treatment, is one of the many firms opting to leave London due to lower valuations and a lack of investor interest, with its shares dropping by over 60% since 2018.
Having initially listed in London in 2014 after being spun off from Reckitt Benckiser, Indivior shifted its primary listing to the U.S. last year. The decision to delist from London is seen as a strategic move to streamline operations. This trend of firms moving their primary listings away from the UK market is not unique to Indivior, as other companies like Flutter have also made similar shifts.
Despite efforts to overhaul listing rules and boost its capital markets, London has been struggling to attract major initial public offerings (IPOs). Even with rule changes, the appeal of London as a listing destination remains subdued. Chinese retailer Shein, for instance, opted for Hong Kong over London for its IPO, underscoring the ongoing challenge of attracting significant IPOs to the UK market.
Several London-listed companies, including DS Smith and Darktrace, have recently delisted following takeovers. Indivior’s decision to delist from London comes at a time when over 80% of its revenue is generated in the U.S., with the Nasdaq accounting for a significant portion of its trading volumes.
Following a management restructuring earlier this year, with David Wheadon appointed as chair and Joe Ciaffoni as CEO, Indivior’s CFO stepped down in December under pressure from top shareholder Oaktree Capital. The company’s financial outlook for 2025 includes a projected 17% drop in net revenue, citing weak sales of its medication-assisted therapy for opiate addiction.
The pharmaceutical sector’s shift away from the London Stock Exchange reflects broader trends in the industry, where companies are seeking to optimize costs and align with their primary revenue sources. Indivior’s move underscores the challenges facing London in attracting and retaining companies amidst a competitive global market for listings.
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