The Indivior share price is smashing the FTSE 250. Should I buy now?

The Indivior share price has been leading the FTSE 250 for days, on the back of great 2020 results. I’m trying to decide whether to buy.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

I have my eyes open for recovery stocks for 2021, and Indivior (LSE: INDV) has come storming into view. The FTSE 250 as a whole is sitting on a 6% loss over the past 12 months. But the Indivior share price has jumped by more than 250% in the same period.

It’s still way down on a 2018 peak, with the shares going into tailspin in 2019. But what’s this new lease of life all about? And are we looking at long-term sustainable growth? The surge of the past few days is down to the company’s latest update.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Indivior is a pharmaceuticals company, specialising in opioid addiction treatment. The tragic opioid addiction crisis is big, especially in the USA. Sad though that is, any improvements in 2020’s profit outlook is good news for the firm. And that’s exactly what it delivered on 15 January. I could tell it was good just by looking at the Indivior share price, which jumped nearly 10% on the day.

Indivior share price soaring

My Motley Fool colleague Manika Premsingh made a prediction: “I reckon that the latest news will provide continued impetus for INDV’s share price.” And how prescient that seems now. On Tuesday, it leads the FTSE 250 again, up another 9% at the time of writing. After a solid Monday too, the Indivior share price has now climbed 24% since the update was released.

Indivior had previously indicated full-year revenue in the range of $595m to $620m. The results have easily exceeded that, with new expectations put at $645m to $650m. The company’s Sublocade product plays a big part in that, with net revenue now expected to come in between $128m and $130m (up from guidance of $120m to $125m). Other product revenue looks to be largely in line with guidance.

On top of better-than-expected revenue, Indivior reported operating expenses slightly below guidance. Overall, the company “now expects to deliver adjusted pre-tax income ahead of its previous expectations.” Quite how far ahead we don’t yet know, so we’ll have to wait until full results are delivered on 18 February.

Should I buy now?

This all sounds good. But with the Indivior share price having more than trebled over the past year, would I buy now? Well, my portfolio might benefit from a growth stock or two. As far as future demand goes, I can’t see an end to the opioid crisis any time soon. Not when the majority of drugs-related deaths around the world are down to opioids.

But I remain cautious for several reasons. One is that Indivior’s results have been a bit erratic. And I really like to see at least a slightly longer-term positive run before I buy a stock. The other is a £1bn claim brought against the company in November, by former parent Reckitt Benckiser

Indivior reckons the claim is baseless, but I’d rather wait and see. I might be missing some top growth profits by turning away from the Indivior share price right now. But I prefer to minimise risk these days, and there are many lower-risk investment candidates out there.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Here’s a FTSE 250 stock to buy to benefit from the construction boom!

Jabran Khan details a FTSE 250 stock that could be primed to benefit from the infrastructure and construction boom.

Read more »

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Is the Royal Mail share price a buying opportunity?

With a 6% dividend yield and a price-to-earnings ratio of 3, is the Royal Mail share price in buying territory?…

Read more »

Scene depicting the City of London, home of the FTSE 100
Investing Articles

3 FTSE 100 shares! Should I buy them?

I'm searching for the best FTSE 100 stocks to buy following recent market volatility. Are these blue-chip UK shares too…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Should I buy one of the cheapest shares on the FTSE 100 index?

This Fool explores one of the cheapest stocks on the FTSE 100 index by share price and decides if he…

Read more »

Asian Indian male white collar worker on wheelchair having video conference with his business partners
Investing Articles

With trading suspended, where could the Eurasia Mining (LON:EUA) share price go next?

This morning, the EUA share price was suspended pending an announcement - so could improving sales send the share price…

Read more »

Hand holding pound notes
Investing Articles

Are the FTSE 100’s top income stocks a bargain?

The FTSE 100 is renowned for its value and dividend stocks. So, are the index's top income stocks worth a…

Read more »

Compass pointing towards 'best price'
Investing Articles

Scottish Mortgage shares have slumped 40%. Time to buy now?

Scottish Mortgage Investment Trust (LON: SMT) shares have rewarded shareholders well in recent years. I'm thinking of buying now they're…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

3 recession stocks I’d buy in a hurry

With the economic outlook getting worse, our writer highlights a trio of recession stocks he would consider buying for his…

Read more »