Pharmaceutical business departs from London following significant decrease in share value.
Indivior Ditches London Stock Exchange for Nasdaq 💔
After bottoming out, pharmaceutical titan Indivior has decided to wave goodbye to the London Stock Exchange (LSE) and plant its roots firmly in the heart of Wall Street, trading exclusively on the Nasdaq come July 25th.
Indivior's sizzling opioid addiction treatments have made them a powerhouse, but the London bourse couldn't keep up with its sizzling stock. The group, which switched its primary listing from the UK to the US last year, stated that the move aims to buttress its financial foundations by slashing operational costs.
London's woes include weak liquidity, lackluster trading volumes, and excessive administrative expenses when compared to the NASDAQ. Indivior, born in London after being spun-out from Reckitt Benckiser in 2014, soared from 725p to 2,450p by June 2018, but the party didn't last. Shares have plummeted over 60% since their peak, trading at 944.5p as of Friday last week.
Almost 80% of Indivior's net revenues are generated in the US, and around 70% of its investors call it home. The group's execs argue that a solo primary listing on the NASDAQ is a more accurate reflection of their operations, giving them the chance to cut costs and complexity.
Indivior's latest management shake-up, following the departure of its finance chief in a settlement agreement earlier this year, saw new faces step in, with David Wheadon assuming the role as chair and Joe Ciaffoni swooping in as CEO. Wheadon expressed that the delisting from London was a "key milestone" for the company.
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Indivior's decision to delist from the London Stock Exchange and trade exclusively on the Nasdaq is aimed at reinforcing its financial foundations by reducing operational costs. This move aligns with the company's primary operations and investor base, as almost 80% of its net revenues and around 70% of its investors are based in the United States.
