Global pharmaceutical firm Indivior plc is cutting an unspecified number of jobs and reducing spending by as much as $70 million as the company shifts emphasis away from its addiction treatment drug Suboxone.
The Chesterfield County-based Indivior said Thursday that it will focus on two of its other drugs — Sublocade, an injection drug used in the treatment of moderate to severe opioid use disorder, and Perseris, an extended-release injectable drug used for the treatment of schizophrenia in adults.
Part of the restructuring will mean the company will hire and redirect some employees to work in those areas.
But Indivior also said the plan also calls for streamlining certain corporate functions and reducing discretionary spending, including suspending merit-based pay increases.
It also said it will reduce its workforce, but the company declined to provide a number of jobs affected. The company was in the process of telling affected employees globally.
“These actions, unfortunately, will impact our workforce as we are reorganizing and reallocating healthcare practitioner-facing resources in the U.S. toward organized health systems, streamlining certain corporate functions and reducing discretionary expenses,” Indivior CEO Mark Crossley said in a statement.
“While some teams will remain unchanged, others will be reduced in size to align with our strategic priorities,” he said. “We are taking the right strategic actions on organizational focus and cost management to better align our capabilities and resources with the group’s near- and medium-term priorities, while also supporting our long-term growth ambitions.”
Indivior said it was taking the actions to enhance its commercial and research and development focus while protecting its financial and operational flexibility in response to ongoing challenges posed by the COVID-19 pandemic.
While some of the expected savings will be reinvested to support the continued growth of Sublocade and Perseris, Crossley said the company “will retain a large portion of the expected savings to preserve the group’s flexibility through the COVID-19 pandemic.”
Indivior has its corporate headquarters on Midlothian Turnpike in Chesterfield and has major operations in Slough, England. The company declined to say how many people work at its corporate offices here.
United Kingdom-based Reckitt Benckiser Group Plc spun off its Chesterfield-based pharmaceutical unit and renamed it Indivior in December 2014.
Indivior’s restructuring comes as the company has a new CEO — the founding CEO resigned in late June — while the company faces legal issues.
Shaun Thaxter, who served for 10 years as its top executive, pleaded guilty in federal court to a misdemeanor charge related to the company’s sales of Suboxone. Thaxter has agreed to pay $600,000 in fines and forfeitures and could serve up to a year in prison.
Later in July, the company agreed to pay $600 million to settle criminal and civil claims related to the marketing of its Suboxone. In April 2019, a federal grand jury in Virginia indicted Indivior for allegedly using fraudulent marketing practices to increase profits. The company has denied wrongdoing.