INDV to Merge With Supernus, Beats on Q2 Earnings, Raises '26 Outlook

Under the agreement, Indivior shareholders will own approximately 56.5% of the combined company, while Supernus shareholders will hold the remaining 43.5%. The transaction is expected to close in the fourth quarter of 2026, subject to shareholder and regulatory approvals and customary closing conditions. Following completion, the combined company will be headquartered at Supernus' existing headquarters and will continue trading on Nasdaq under the ticker SUPN.

On a pro forma basis, the merged entity is expected to generate approximately $2.2 billion in annual revenues, $888 million in adjusted EBITDA and achieve $125 million in annual cost synergies.

The proposed merger with Supernus is expected to strengthen the combined company's research and development capabilities by integrating Indivior's leadership in addiction medicine with Supernus' broader CNS expertise. The merged organization also plans to advance Supernus' innovative pipeline programs while pursuing additional business development opportunities to further expand its CNS portfolio.

Indivior also announced its second-quarter 2026 results. Adjusted earnings were $1.15 per share, up 125.5% year over year, and beating the Zacks Consensus Estimate of 97 cents.

Total revenues rose 13.6% year over year to $343 million, primarily driven by strong U.S. Sublocade performance. The metric beat the Zacks Consensus Estimate of $308 million.

Despite the better-than-expected quarterly performance, INDV shares declined by 6.6%, likely as investors reacted negatively to the merger announcement.

Year to date, shares of Indivior have risen 4.1% against the industry’s 4.4% decline.

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INDV's Q2 Earnings in Detail

Total Sublocade net revenues increased 21% year over year to a quarterly record of $253 million.

U.S. Sublocade revenues increased 22% to $238 million, driven by strong dispense unit volume growth, favorable price/mix and gross-to-net adjustments.

Dispense unit volume increased 18% year over year, supported by strong market demand and commercial execution.

The quarter saw record new patient starts for the company, with roughly 32,816 patients beginning Sublocade treatment. As of June 30, 2026, more than 545,000 U.S. patients had been prescribed Sublocade since launch. U.S. sublingual and other product revenues increased to $57 million compared with $52 million in the prior-year quarter. Perseris revenues declined to $5 million from $8 million, while Rest of World revenues declined 6.5% year over year to $43 million.

In the second quarter of 2026, overall U.S. revenues rose to $300 million, up from $256 million a year ago.

INDV's Cost Base Lifts Profitability

Indivior continued to improve profitability through disciplined cost management. Adjusted operating expenses declined 33% year over year to $112 million.

Adjusted EBITDA surged 111% to $186 million.

INDV's Balance Sheet & Share Repurchases

Indivior ended the quarter with $249 million in cash and investments, up from $201 million as of March 31, 2026. During the quarter, the company repurchased about 4.7 million shares for $175 million at an average price of $37.52.

Indivior Raises 2026 Outlook

Reflecting stronger-than-expected commercial performance, Indivior increased its full-year 2026 financial guidance.

The company expects net revenues of $1.295-$1.365 billion, up from its previous guidance of $1.215-$1.285 billion.

Indivior also lifted its total Sublocade net revenue forecast to $1.01-$1.05 billion from $950-$990 million, implying approximately 20% year-over-year growth at the midpoint.

The increase in guidance reflects stronger-than-expected dispense-unit growth and improved commercial dispense yields, supported by favorable product mix trends.

Adjusted EBITDA is projected at $700-$740 million, up from the prior range of $620-$660 million. The adjusted operating expense outlook was maintained at $430-$450 million.

INDV's Zacks Rank & Stocks to Consider

Indivior currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 90 days, earnings per share estimates for Harmony Biosciences have decreased from $3.34 to $3.30 for 2026. Over the same period, estimates for earnings per share increased from $3.79 to $3.87 for 2027. HRMY shares have lost 4.9% year to date.

Harmony Biosciences missed on earnings in each of the trailing four quarters, delivering an average negative surprise of 25.16%.

Over the past 90 days, estimates for Liquidia’s 2026 earnings per share have increased to $3.02 from $1.50. Over the same period, EPS estimates for 2027 have risen to $5.31 from $2.91. LQDA shares have gained 143.1% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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