Highlights

  • Indivior shows 227.70% one-year basic EPS growth, a P/E of 12.46 and PEG of 0.00.
  • Second quarter net income was $122 million, against $18 million a year earlier.
  • Indivior agreed on August 1, 2026 to an all-stock merger of equals with Supernus.
  • The company has repurchased $300 million of shares; $100 million remains under its program.

Basic earnings per share growth of 227.70% over one year, a trailing twelve-month P/E of 12.46 and a PEG of 0.00 on an expected basis define Indivior (NASDAQ:INDV) as an undervalued growth stock, with shares trading at USD 34.35 on October 28, 2026, down 1.07%. Alongside those figures, the maker of long-acting injectable treatments for opioid use disorder completed a $500 million convertible notes offering on March 17, entered a merger agreement with Supernus on August 1, and reported second quarter 2026 net income of $122 million in early August.

Indivior Pharmaceuticals is based in North Chesterfield, Virginia, and is incorporated in Delaware, having completed a redomiciliation to the United States on January 26, 2026. It describes itself as the market leader in long-acting injectable medications for opioid use disorder. Its core products are SUBLOCADE, a buprenorphine extended-release monthly injection, and SUBOXONE Film. The company operates as one business segment, predominantly the manufacture and sale of buprenorphine-based prescription drugs.

Growth: Second Quarter Earnings, SUBLOCADE Revenue and Operating Expenses

Net income was $122 million in the second quarter of 2026 against $18 million a year earlier, and $211 million for the first six months against $65 million. Second quarter basic earnings per share were $1.02 against $0.15, and diluted earnings per share were $0.98 against $0.14. Six-month diluted earnings per share were $1.67 against $0.52.

Net revenue was $343 million against $302 million, up 14%, and $660 million for the six months against $568 million, up 16%. Total SUBLOCADE net revenue was $253 million against $209 million, up 21%. The company said U.S. SUBLOCADE net revenue rose 22% and dispense unit volume grew 18%. Gross margin was 85% against 83%.

Operating income was $160 million against $72 million. Selling, general and administrative expenses were $122 million against $158 million, which the company attributed primarily to headcount reductions and cost savings.

Valuation: P/E of 12.46, PEG of 0.00 and Cash Flow

The P/E ratio of 12.46 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 is on an expected basis. Net cash provided by operating activities was $220 million for the first six months against $233 million. Income tax expense was $38 million, an effective tax rate of 24%.

Capital Returns and Balance Sheet

The board authorized a share repurchase program of up to $400 million in February 2026, over a period of up to 18 months. The company repurchased 3,974,153 shares for $125 million in the first quarter and 4,664,540 shares for $175 million in the second quarter. Indivior said $100 million remains and it intends to use that amount opportunistically.

The company issued $500 million of 0.625% Convertible Senior Notes due 2031 and used a portion of the proceeds to repay the $333 million balance of its original term loan in full, recording an $18 million loss on debt extinguishment. Cash and cash equivalents were $222 million at June 30, 2026, against $195 million at December 31, 2025, and long-term borrowings were $487 million.

Under the merger agreement, Indivior will declare a special cash dividend of $1,000 million, and Citibank, N.A. has committed to a $650 million senior secured term loan facility.

Disclosed Risks and Outlook

Current liabilities exceed current assets by $142 million and total liabilities exceed total assets by $208 million, which the company attributed to the timing of rebate payments relative to collections. It said it must sustain sales volume with no material change in collection and rebate timing to maintain liquidity. Rest of the World net revenue was $43 million against $46 million, reflecting exits from certain non-U.S. markets.

Approximately 1,967 cases naming approximately 26,307 plaintiffs are consolidated in the SUBOXONE Film dental injury litigation, and the company said no estimate of possible loss can be made. Bellwether trials would not occur before the end of the first quarter of 2028. A U.K. shareholder multiparty action has a first trial scheduled for the fourth quarter of 2028, and False Claims Act and opioid litigation remain pending. The company ceased Phase 3 development of INDV-6001, will not advance INDV-2000 internally and is not pursuing pipeline activities.

The company expects the Supernus merger to close in the fourth quarter of 2026, subject to stockholder and regulatory approvals. Indivior stockholders are expected to own approximately 56.5% of the combined company, and termination fees of $174 million or $101 million may apply in limited circumstances. It expects $10 million to $15 million of capital expenditures in the second half of 2026.