Indivior Plc

 
Indivior Plc (LON: INDV) is a speciality pharmaceutical company which focuses on opioid addiction treatment drugs and has over 20 years of experience. The company was formed in 2014 after Reckitt Benckiser separated its speciality pharmaceuticals segment into an independent company, which focused on developing, manufacturing, and selling prescription drugs used for the treatment of opioid dependence.

The group will announce its Q1 results on 30^th April 2020.

Recent News
On23^rd March 2020, Indivior announced the publication of outcome for a 1-year study of RECOVER™. RECOVER™ is a real-world observational study for 24-month for Remission from Chronic Opioid Use-Studying Environmental and Socio-Economic Factors on Recovery.

Financial Highlights - Financial Year 2019 (31st December 2019, USD, million)

(Source: Annual Report, Company Website)

For the financial year ending 31^st December 2019, the company’s revenue declined by 22 per cent to USD 785 million as compared to USD 1,005 million in the financial year 2018. Operating profit during the year was USD 178 million, a decrease of 39 per cent, as compared to USD 292 million in the financial year 2018. During the financial year 2019, the company’s net income declined by 51 per cent to USD 134 million as compared to USD 275 million in the financial year 2018. The basic earnings per share stood at 18 cents in the financial year 2019 versus basic earnings per share of 38 cents in the financial year 2018. The diluted earnings per share stood at 18 cents in the financial year 2019 versus diluted earnings per share of 37 cents in the financial year 2018.

Share Price Performance

Daily Chart as of April 1^st, 2020, after the market close (Source: Thomson Reuters)

Indivior Plc shares were trading at GBX 43.66 at the time of writing after the market close on 1^st April 2020. Stock's 52 weeks High is GBX 106.40 and Low is GBX 20.98.

Conclusion
During the fiscal year 2019, the company witnessed a decline in financial performance. The Group further reduced its revenue guidance for the year 2020. Challenging macroeconomic conditions could deteriorate the business performance of the Group. Failure in the successful commercialization of its products could hamper the growth of the company. Failure in supply chain management could affect the operations of the company. Inability to cope up with regulatory norms and compliances could impact the overall business of Indivior. The Group's operations rely on complex processes and systems and strategic partnerships, failure to continuously maintain operational processes and systems could adversely impact products availability and affect the company’s business performance.


Based on the rationale as highlighted above, we recommend investors to “AVOID” taking fresh positions in the stock at the closing price of GBX 43.66 (as on 1^st April 2020).

CQS New City High Yield Fund Ltd

CQS New City High Yield Fund Ltd (LON: NCYF) is a closed-end investments company, which is involved in the business of investments in securities yielding fixed interest. The groups’ primary objective is to help investors in capital growth and dividend yield.

Financial Highlights – H1 Financial Year 2020 (31^st December 2019, GBP, thousand)

(Source: Interim Report, Company Website)
 
In the first half of the financial year 2020, driven by positive capital returns for the period, the groups’ total income stood at GBP 12,207 thousand versus negative total income of GBP 4,328 thousand in the H1 financial year 2019. The group reported a total profit before finance expenses and tax of GBP 10,775 thousand in the first half of the financial year 2020 versus a loss before finance expenses and tax of GBP 5,688 thousand in H1 FY2019. The PAT (profit after tax) stood at GBP 10,397 thousand in the H1 FY2020 versus a LAT (loss after-tax) of GBP 5,958 thousand in the first half of the financial year 2019. The earnings per share stood at 2.45 pence in H1 FY2020 versus a loss per share of 1.47 pence in the first half of the financial year 2019.

Share Price Performance

Daily Chart as of April 1^st, 2020, after the market close (Source: Thomson Reuters)

CQS New City High Yield Fund Ltd shares were trading at GBX 39.00 at the time of writing after the market close on 1^st April 2020. Stock's 52 weeks High is GBX 61.80 and Low is GBX 22.90.

Conclusion
The group has shown an increase in financial performance for the first half of the financial year 2020. Both the top-line and the bottom-line performance has improved for the period.The group need to manage its operating expenses more effectively as it can result in a decline in the profitability in the near future. With the outbreak of Covid-19, many countries imposed restrictions on travel and resulted in a sharp fall in the stock markets globally. The negative economic shock will keep downward pressure on the rate of interest, and central banks globally are cutting rates, including the bank of England for economic impact mitigation.The Covid-19 has resulted in increased volatility and reduced the liquidity, which has resulted in a decline shares of the company. Moreover, the company’s stock is trading on the higher side, raising doubts at its upside potential at the current price level.

Therefore, based on the above rationale, we have given a “Watch” recommendation at the closing price of GBX 39.00 (as on 1^st April 2020), while we look for any upcoming catalysts in the near term.

Disclaimer

PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.
References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.
This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332.
The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine is not responsible for material posted on this website and does not guarantee the content, accuracy, or use of the content in this site. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated.
Kalkine do not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional licensed financial planner and adviser.