REUTERS: Indivior Plc lost three-quarters of its stock market value on Wednesday and former parent Reckitt Benckiser also fell after the U.S. Justice Department accused the British drugmaker of illegally boosting prescriptions for its blockbuster opioid addiction treatment.
Shares, however, had already been hurt by expectations of a slump in Suboxone sales with the arrival of new generic competition this year and the company has struggled to convince analysts and financial investors that it has an adequate replacement. Its chief executive Rakesh Kapoor, who oversaw several acquisitions and divestitures with the aim of turning Reckitt into a global consumer healthcare company, will retire this year, even though a major undertaking - splitting Reckitt into two business units - is unfinished.In an indictment which charged Indivior and its subsidiary Indivior Inc with conspiracy, health care fraud, mail fraud and wire fraud, the government said it would seek to have it forfeit at least US$3 billion.
Indivior said in a statement it was"extremely disappointed" by the department's decision to charge it, and added it would vigorously contest it. The spin-off, and the 2017 sale of Reckitt's food unit, let Reckitt focus on expanding its consumer health business, which targets ageing populations and those interested in health and wellness in the West and rising incomes in developing markets.
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