Indivior Pharmaceuticals, Inc. (INDV)

Price$33.62Cached quoteAs of 2026-10-16 11:41 UTC

AI: Undervalued

Price checkThe shares look undervalued if recent profit gains and the planned merger broadly hold.

Using the latest completed session, Indivior's stock-market value is about $4.1 billion and June net debt, meaning debt minus cash, was about $287 million. That values the business at roughly six times the midpoint of management's $700-$740 million 2026 adjusted EBITDA guidance; adjusted EBITDA is profit before interest, tax and certain non-cash or unusual items. Earnings per share over the last four quarters, including potential share dilution, were about $2.79, or roughly thirteen times earnings. Those are modest multiples for current growth, supporting an undervalued view despite merger risk.

Big pictureProfit has rebounded sharply, but cash generation and the balance sheet still need proof.

Revenue climbed from $791 million in 2021 to $1.24 billion in 2025, but profit and cash were uneven. Net income fell from $205 million in 2021 to losses in 2022 and 2023, then recovered to $210 million in 2025. Operating cash flow was negative $27 million in 2025; in the first half of 2026 it was positive $220 million. After $27 million of capital spending, free cash flow, meaning cash left after running and investing in the business, was about $193 million. At June, cash was $222 million, debt was $509 million, and liabilities exceeded assets by $208 million.

Business strengthSublocade is growing quickly and lower costs are turning sales growth into much stronger profits.

SUBLOCADE supplied 74% of first-half 2026 revenue, so Indivior depends more on one medicine than on the economic cycle. Second-quarter SUBLOCADE revenue grew 21%, U.S. dispense units grew 18%, and total company revenue grew 14%, while operating expenses fell. The 2025 annual filing lists key U.S. SUBLOCADE patents extending from 2031 into later years, supporting a runway, but BRIXADI is an approved competing long-acting buprenorphine injection. The bull case is continued unit growth and cost discipline; the bear case is concentration causing a large earnings hit if uptake, pricing or market share weakens.

What could change the storyThe merger can unlock value, but it also adds debt and makes execution more important.

In the first half, Indivior spent $300 million buying back 8.64 million shares, reducing shares outstanding to 118.0 million from 125.1 million at year-end, while debt rose to $509 million from $351 million. The proposed merger would give Indivior holders a $1.0 billion special cash dividend and 56.5% of the combined company; Supernus holders would own 43.5%. The companies target $125 million of annual cost savings, with financing including a new $650 million loan. This returns capital but also dilutes ownership and raises leverage. Value improves if the deal closes and savings arrive.

AI: News

Supernus merger announcedThe proposed all-stock merger adds diversification and a large cash payout, but also adds execution and financing risk.

On August 3, Indivior and Supernus announced a merger expected to close in the fourth quarter, subject to shareholder and regulatory approvals. Indivior holders would receive a $1.0 billion special cash dividend and own 56.5% of the combined company; the companies target $125 million of annual cost savings. Reuters reported Indivior shares up nearly 10% in premarket trading, but the same morning also brought stronger earnings, so the market move cannot be cleanly attributed to the merger alone.

Guidance raised againStrong second-quarter growth led management to raise full-year sales and profit expectations for the second time.

On August 3, second-quarter revenue reached $343 million, up 14%, while SUBLOCADE revenue rose 21% to $253 million and net income reached $122 million. Management raised 2026 revenue guidance to $1.295-$1.365 billion and adjusted EBITDA guidance to $700-$740 million. MT Newswires reported that adjusted earnings beat analyst estimates and the shares were 1.7% higher in premarket trading, but the merger had been announced the same morning, so that move cannot be assigned to earnings alone. The operating results still strengthened the fundamental case before any merger savings are counted.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$1.24B	$1.19B	$1.09B	$901.0M	$791.0M
Gross profit	$994.0M	$957.0M	$919.0M	$749.0M	$664.0M
Gross margin	80.23%	80.56%	84.08%	83.13%	83.94%
Research & development	$97.0M	$107.0M	$116.0M	$74.0M	$52.0M
Operating expenses	$732.0M	$919.0M	$1.07B	$831.0M	$451.0M
Operating income	$262.0M	$38.0M	−$152.0M	−$81.0M	$213.0M
Operating margin	21.15%	3.20%	−13.91%	−8.99%	26.93%
EBITDA	$272.0M	$54.0M	−$137.0M	−$65.0M	$228.0M
EBITDA margin	21.95%	4.55%	−12.53%	−7.21%	28.82%
Net income	$210.0M	$7.0M	−$126.0M	−$44.0M	$205.0M
Net profit margin	16.95%	0.59%	−11.53%	−4.88%	25.92%
Basic EPSper basic share	$1.68	$0.05	-$0.92	-$0.32	$1.41
Diluted EPSper diluted share	$1.64	$0.05	-$0.92	-$0.32	$1.35

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈15.85%of listed shares

BlackRock, Inc.18.71M shares · Jun 30, 2026

View holders

Top 20 reported holders of INDV
Holder	% owned
BlackRock, Inc.	≈15.85%18.71M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈6.42%7.57M shares
OAKTREE CAPITAL MANAGEMENT LP	≈5.19%6.13M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.66%5.5M shares
STATE STREET CORP	≈4.23%4.99M shares
FULLER & THALER ASSET MANAGEMENT, INC.	≈3.91%4.62M shares
Two Seas Capital LP	≈2.95%3.48M shares
MORGAN STANLEY	≈2.88%3.4M shares
FRANKLIN RESOURCES INC	≈2.81%3.32M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.68%3.16M shares
Assenagon Asset Management S.A.	≈2.61%3.08M shares
Madison Avenue Partners, LP	≈2.44%2.87M shares
MANGROVE PARTNERS IM, LLC	≈2.27%2.68M shares
CITADEL ADVISORS LLC	≈2.26%2.67M shares
Driehaus Capital Management LLC	≈1.95%2.3M shares
MILLENNIUM MANAGEMENT LLC	≈1.78%2.1M shares
DIMENSIONAL FUND ADVISORS LP	≈1.61%1.9M shares
Invesco Ltd.	≈1.56%1.84M shares
DEERFIELD MANAGEMENT COMPANY, L.P.	≈1.40%1.65M shares
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	≈1.39%1.64M shares

Percentages use 118.01M shares of this listed class outstanding on Jul 28, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Oct 29, 2026 · Quarterly data

Insider buys & sells

Oct 1, 2024–Sep 30, 2026

Buys10$311.6K disclosed value

Sells (SEC code S)3$2.83M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Aug 27, 2026Form 4	Anderson Woodrow DChief Accounting Officer	BuyCommon Stock	1.5K	$35.69	$53.5K	27.6K
Aug 5, 2026Form 4	Anderson Woodrow DChief Accounting Officer	BuyCommon Stock	1.5K	$36.28	$54.4K	26.1K
Jul 10, 2026Form 4 · 10b5-1	Heidbreder ChristianChief Scientific Officer	SellCommon Stock	18.6K	$41.14	$764.6K	209.3K
Jun 11, 2026Form 4 · 10b5-1	Heidbreder ChristianChief Scientific Officer	SellCommon Stock	18.6K	$38.06	$707.4K	227.9K
Jun 8, 2026Form 4 · 10b5-1	Preblick RyanChief Financial Officer	SellCommon Stock	36.0K	$37.70	$1.36M	284.8K