Oaktree Capital Management, the investment fund, has urged British drugmaker Indivior (NASDAQ: INDV) to cooperate with the fund in refreshing its board of directors, it said in a letter dated November 6 and published in a filing on Thursday.
The request from the fund, which became the company’s second-largest shareholder in July, comes weeks after Indivior issued its second profit and revenue warnings in a span of three months, citing lower-than-expected sales from its opioid addiction treatment.
The company’s opioid addiction treatment Sublocade has been losing market share due to the rapid adoption of Brixadi, a competing drug developed by Swedish pharmaceutical firm Camurus.
“The company essentially disregarded Brixadi’s entrance into the market by failing to take basic steps to protect Sublocade’s competitive position,” Oaktree said in the letter.
Indivior (NASDAQ: INDV) shares have slumped about 30% year-to-date.
Oaktree, which specializes in providing rescue funding to struggling firms, had a 7.37% stake in the drugmaker, according to data compiled by LSEG.
Investment manager Two Seas Capital is the top shareholder with a 10.25% ownership.
In a statement, Indivor said it has actively engaged with Oaktree in recent weeks and remains “open-minded” to all proposals.
In July, the drugmaker had taken a $86 million hit in a settlement over its alleged role in spreading opioid addiction across the United States.
(Source: Reuters)
