For my penultimate Barchart article in 2025, I wanted to revisit Indivior (INDV), a Virginia-based developer of opioid addiction treatments that I last covered in early September.
At the time, INDV stock had just moved up 11 spots into the top 50 on Barchart’s Top 100 Stocks to Buy list. On Monday, the stock rose 12 spots to 38th, eight places higher than in early fall.
In the past 364 days, Indivior’s share price has risen nearly 200%, with 47% of the gains in the three-plus months since my September article.
There is no question that INDV is on the move. The issue for investors is whether it can maintain momentum in 2026.
As the company becomes more profitable and adds new treatments to its lineup, its price-to-earnings ratio continues to fall. That’s a win/win if you’re a shareholder.
While it’s impossible to know what 2026 holds, here’s why Indivior stock has an excellent chance to keep moving higher in the next 12 months.
When I last wrote about Indivior, it had six months in the books for fiscal 2025, generating a GAAP profit of $65 million, 281% higher than a $36 million loss in the six months a year earlier.
Most of the profits were from Sublocade — 68% of its $568 million in six-month net revenue — the company’s once-monthly injection to treat opioid addiction, releasing a little bit of buprenorphine daily throughout the month, virtually eliminating the ups and downs from treatment.
For all of 2025, the company expects revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $1.055 billion and $287.5 million, respectively, at the midpoint of its guidance.
In late October, it released its Q3 2025 results. It reports fourth-quarter and year-end results in mid-February.
The company’s 2025 guidance, issued in late October, raised both revenue and adjusted EBITDA projections. It now expects revenue of $1.2 billion, up $145 million from late July, and an adjusted EBITDA of $410 million, $122.5 million higher than its earlier estimate.
The new guidance implies 1% revenue growth and 15% adjusted EBITDA growth over 2024. More importantly, its adjusted EBITDA margin should improve by 757 basis points to 34.17% in 2025.
While revenues haven’t moved too much, non-GAAP profitability sure has. Furthermore, its GAAP loss in 2024 of $48 million should be its last annual loss in the near future. As of Sept. 30, its nine-month net profit was $108 million, up from a $ 14 million loss a year earlier.
What’s not to like?
On Dec. 22, Indivior was added to the S&P SmallCap 600 Index, arguably the small-cap index with higher quality companies than the Russell 2000. But I digress.
“We are committed to growing SUBLOCADE®, our number one prescribed, first-in-class long-acting injectable treatment for moderate to severe opioid use disorder, as we leverage our new and simplified operating model,” stated CEO Joe Ciaffoni in the press release marking the inclusion.
As I mentioned in September, Ciaffoni has said that 2025 is a transition year, positioning the company for growth in 2026. Part of this transition included hiring Pat Barry as CCO (Chief Commercialization Officer), a 30-year veteran in the pharmaceuticals industry, to accelerate its commercialization plan.
A key part of this plan is to capture a larger share of the U.S. LAI (long-acting injectables) market. As of the second quarter, only 8% of its Sublocade revenue was from the LAI market.
Barry discussed the company’s Sublocade plans extensively during the Q3 2025 conference call.
“We also saw 11% year-over-year growth in the number of active SUBLOCADE prescribers and 11% growth in those prescribing for five or more patients. The number of SUBLOCADE patients over the trailing 12 months also grew 5% year-over-year. These results are important early indicators of our commercial execution,” Barry stated.
As Ciaffoni said in the conference call, the company’s moves to simplify its business will pay dividends in 2026. A $150 million reduction of its annual operating expenses will ensure its operating budget doesn’t exceed $450 million. Its 2025 plan was between $510 million and $520 million.
It will do more for Sublocade while spending less. That’s what you like to see.
Analysts expect Indivior to earn $2.86 a share in 2026. Its share price is 12.5 times this estimate. The stock’s trailing 12-month P/E ratio is 37.1x, according to S&P Global Market Intelligence.
While only seven analysts cover INDV stock, all rate it a Buy, with an average 12-month target price of $37.86, just over $2 above its current share price.
As Indivior delivers further progress on its commercialization plans in 2026, there’s a good possibility that existing analysts covering its stock will raise their targets, bringing additional analyst coverage to the company. That should produce higher multiples and a higher share price.
I typically don’t get excited about healthcare stocks. However, Indivior’s opioid focus and push into LAIs suggest this is one time where maybe I should.
In 3-5 years, buying at $36 should be a winning hand.
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
