Shares Of Indivior PLC Left The Penny Stock Station Over The Last Few Days; What Happened?
It’s something everyone hears about but rarely sees in real-time. Penny stocks that run thousands of percentage points within days or even hours. We saw that happen earlier this year with Liberty TripAdvisor Holdings Inc. B Shares (LTRPB Stock Report). But as we saw, just as quickly as it jumped, it came crashing back to earth. After running as high as $134 a share, the stock now trades just over $26.50.
That’s still considerably higher than its sub-$5 levels prior. Needless to say, a pullback from $134 to under $30 is aggressive. Over the last few days, we caught wind of a penny stock that began trading actively after reporting earnings. At the time, Indivior PLC (INVVY Stock Report) was trading around $3.
It’s also worth mentioning that the day it actually reported earnings, INVVY stock traded less than 15,000 shares. However, about a week later, INVVY began surging. On May 19th, the penny stock traded more than 2.8 million shares and rallied to highs of $15 from a $3.20 open. Over the next 4 sessions to follow, INVVY stock ran as high as $40 with similar above-average trading volume behind it.
So What Happened With INVVY Stock?
As stated above, Indivior reported earnings on May 14th. Specifically, the net revenue of its SUBLOCADE came in at $29m compared to Q1 2019 of $11m. Total SUBLOCADE units dispensed were 23,400 or a 19% increase vs. Q4 2019 and 148% vs. Q1 2019. However, overall the earnings results weren’t great when it came to the bottom line.
Total net revenue in Q1 2020 decreased by 36% to $153m (Q1 2019: $238m) at actual exchange rates. U.S. net revenue decreased 48% to $105m (Q1 2019: $200m). Growth in the overall U.S. BMAT market improved to a low-teens rate as discussed above. What’s interesting is that this “former” penny stock didn’t start trading like this until far-after these results came out.
The company’s stock also trades on the London Stock Exchange under the symbol “INDV”. There, it’s actually a $61 stock. What’s also interesting is that it appeared to be one of the penny stocks on Robinhood. This is unusual because the Robinhood platform typically doesn’t entertain OTC listed penny stocks. But I can say that some users appear to have been “locked out”. While this came after the fact, it continues to show why certain brokers are experiencing trust issues.
As of the time of this writing, INVVY stock has crashed hard. However, it’s a very prominent question especially among penny stock traders so we wanted to take a closer look. Given the parabolic movement, it is a very risky name as its chart might suggest.
What Is Indivior PLC?
Indivior PLC is a specialty and generic drug manufacturing company. The company is focused on the development, manufacture, and sale of prescription drugs based on buprenorphine for the treatment of opioid dependence. The majority of Indivior’s revenue is generated in the United States according to the company. Indivior considers merger and acquisition investment to be “a potential component of its operational growth strategy” for expanding its research, development, manufacturing, and marketing capabilities.
The company, spun-off from Reckitt Benckiser (RBGLY Stock Report) in 2014. However, it faces a $3 billion fine under criminal charges pressed by the United States for illegally marketing Suboxone, its best-selling opioid addiction treatment. The company had denied the allegation. But said its selling, general and administrative expenses in the quarter nearly tripled.
It increased litigation and antitrust provisions to $621 million from $438 million previously. Given the fact that this is ongoing, it’s hard to say with any certainty that the company can overcome such a situation. Do you think there’s hope for Indivior or is this the end of the line? Comment below.
Can Indivior Stock Go Higher?
This was an incredible penny stock breakout to watch. But given the current situation with the DOJ and the mounting losses due to it, it’s not surprising that the breakout has been a bit fleeting. Shares have plummeted over 70% since reaching $40 highs. Can INVVY stock rebound? That’s a tough question to answer right now. Depending on the potential fall-out from shareholders who’ve been “locked out” from selling shares, it is a unique situation.
Earlier this month the company announced that the Swedish Medical Products
Agency approved Subutex® prolonged-release solution for injection. The 100 and 300mg is designed for substitution treatment of opioid dependence in adults and adolescents over 16. Shaun Thaxter, Chief Executive Officer of Indivior said, “The approval of Subutex® prolonged-release solution for injection in Sweden is an important step, and we look forward to continuing to partner with the local treatment community to help those with opioid use disorder.”
The next upcoming date to keep in mind is June 2. This is when the company’s CEO, Shaun Thaxter and CFO Mark Crossley will participate in the Jefferies Virtual Healthcare Conference. However, given the fact that it barely trades in the U.S., the social media blitz behind it may also raise a few questions. Moreover, the timing of the press release compared to when INVVY stock began breaking out could also come into question as well. But I’ll ask you, if INVVY stock is on your watch list, what are your thoughts on the move and the future of this former penny stock? Will it rebound and continue higher or is it destined to become a penny stock once again?