Will be renamed Indivior and continue to concentrate on treatments for opioid addiction
Reckitt Benckiser Group plc (RB) aims to spin-off its RB Pharmaceuticals business (RBP), a move first announced on 28 July, and plans to list the addiction control specialist as a stand-alone company on the London Stock Exchange.
The business will be renamed Indivior, initially with a head office in Slough, Berkshire, and if the demerger is approved at a General Meeting to be held on 11 December, will start trading on 23 December.
The Board of RB has unanimously recommended shareholders to vote in favour of the demerger, stating that it is in 'the best interests of both RB and Indivior and will result in a stronger future for both companies'.
RB will continue its focus as a consumer health and hygiene company.
Howard Pien, Chairman of Indivior, said the company has 'a profitable opioid addiction business and a strong pipeline that has the potential to revolutionise how the chronic disease is treated worldwide'.
Shaun Thaxter, Chief Executive of Indivior, added: 'Our full team – from the Executive Committee to the Board to our employees – is energised by the opportunity to continue leveraging our unique patient-focused leadership model to expand availability of addiction treatment and improve patient lives across the globe.'
Indivior will be best placed as a stand-alone business within the field of addiction and related mental health disorders
In October 2013, Reckitt Benckiser began a review of its pharmaceutical business, which has experienced declining sales and market share in recent quarters. The bulk of its drug sales are from Suboxone, which is used to treat dependence on heroin and other opiates.
Following the review, Reckitt Benckiser said it believed that Indivior would be best placed as 'a stand-alone business within the field of addiction and related mental health disorders' and undertook the spin-off.
The pharmaceutical business had revenue of US$1.2bn and profit of $489m in 2013, with about 80% of its revenue from the US.
Suboxone Film remains the leading treatment for opioid addiction in the US market with approximately 60% market share of the buprenorphine market by volume.
Indivior has a strong pipeline of products for the treatment of opioid addiction with new formats designed to improve outcomes and reduce abuse and diversion, including a monthly depot injection and the first swallowable tablet.
The company also has a pipeline of products in closely related areas, including treatments for opioid overdose, cocaine overdose and alcohol dependence, as well as a monthly depot treatment for schizophrenia.