As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it might be a deeply undervalued gem.
The stock this week is:
Indivior PLC (INDV)
Indivior PLC is a global specialty pharmaceutical company focused on developing medications to treat addiction and serious mental illnesses. Best known for its leadership in opioid dependency treatment, Indivior’s flagship products target a critical public health crisis with significant global demand. With a strong position in a niche yet vital therapeutic area, the company benefits from durable brand equity, a specialized distribution network, and a long runway for product innovation.
A quick look at the share price history (below) over the past twelve months shows that the price is down 54.32%.
Source: Google Finance
One of the metrics we use in our screens is IV/P (Intrinsic Value to Price). Let us simplify what it means:
IV/P (Intrinsic Value to Price) tells you if a stock is a good deal or not based on how much value you’re getting for the price you pay.
The Calculation:
It combines the stock’s Earning Power, potential Growth, and Shareholder Yield to arrive at its Implied Value.
The Meaning:
If IV/P is greater than 1, the stock may be undervalued — a potential bargain.
If IV/P is less than 1, the stock may be overpriced.
In the case of Indivior, the IV/P currently stands at 2.0. That means:
For every $1 you invest, you’re potentially getting $2.00 of value.
This suggests that Indivior may be significantly undervalued, making it a strong candidate for further analysis by deep value investors.
Possible Reasons for This Undervaluation:
- Increased Competition in Opioid Addiction Treatments: Indivior’s flagship product, Sublocade, has faced intensified competition, notably from Camurus’ Brixadi. The rapid adoption of Brixadi has eroded Sublocade’s market share, leading to reduced sales.
- Discontinuation of Schizophrenia Drug Perseris: In July 2024, Indivior announced the discontinuation of its schizophrenia treatment, Perseris, due to underwhelming sales performance. This decision resulted in a reduction of the company’s product portfolio and included the elimination of approximately 130 jobs.
- Multiple Profit Warnings and Revised Financial Guidance: The company issued several profit warnings within a short period. In October 2024, Indivior lowered its revenue forecast for the year, attributing the adjustment to slower-than-expected growth of Sublocade and competitive pressures. Subsequently, in February 2025, the company projected a 17% decline in net revenue for 2025, primarily due to an anticipated decrease of over 50% in Suboxone film net revenue amid intensified generic pricing activity and the potential entry of a fifth generic competitor.
- Leadership Changes and Activist Investor Pressure: Amid declining financial performance and shareholder dissatisfaction, Indivior experienced significant leadership changes. Activist investor Oaktree Capital Management called for a board refresh in November 2024, leading to the appointment of new directors and the resignation of key executives, including the Chief Financial Officer. In February 2025, it was announced that CEO Mark Crossley would be replaced by Joe Ciaffoni, following pressure from Oaktree Capital.
These combined factors have contributed to the substantial decline in Indivior’s share price over the past year.
Conclusion:
With an IV/P of 2.0, Indivior PLC appears to be trading well below its calculated intrinsic value. The combination of a depressed stock price, double-digit buyback yield, and strong return on assets paints a picture of a company that is both profitable and misunderstood. For value investors willing to look beyond near-term volatility and sector-specific concerns, Indivior may offer a compelling contrarian opportunity with meaningful upside potential
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