Indivior’s top shareholder — one of the largest institutional investors in the City — is unlikely oppose its plans to move to the United States.
Indivior, a company that specializes in treating substance abuse disorders and serious illnesses, announced last month it would consult its shareholders on the possibility of switching from the London Stock Exchange (LSE) to Nasdaq.
Plans to move the headquarters of a number large UK listed companies to New York have been announced at a time when London is under pressure.
Indivior would no longer be eligible to be a part of the FTSE 250 Mid-Cap Index and certain institutional shareholders might no longer be allowed to hold the stock. This, in turn, could “cause our ordinary share price to become more volatile”, the company warned in a recent report filed with the US Securities and Exchange Commission.
The top ten shareholders, who requested anonymity, stated that they were unlikely to vote against this switch, as Indivior would keep its UK listing, and the investor believed it could continue to hold the shares.
Indivior was dual listed on Nasdaq in June last year and plans to only have a secondary listing at the London Stock Exchange.
Investors also stated that Indivior was doing most of its business in the US where the management is based. The company’s shareholders are shifting more towards the US and it makes sense to list the company in the US.
Around 83 percent of Indivior group’s revenues are generated in America, and approximately half of its share capital is held by US investors.
In late 2014, Indivior, a spin-off from Reckitt Benckiser (the FTSE 100 consumer products group), was formed. Its European headquarters is located in Slough. Its manufacturing and research center is located in Hull. This is where buprenorphine was discovered, which is the active ingredient of its most popular Suboxone products.
Investors also believe that there could be modest benefits due to better peer multiples, if the company is listed in America.
Indivior’s global headquarters is located in Virginia. The company believes that a US primary listing will “reflect current and future growth potential” of its treatments, including Sublocade its anti-opioid oral drug, and Perseris for schizophrenia.
The group also hopes to attract more American equity analysts and investors “by elevating its leadership profile in addiction treatments in US capital markets”.