Reckitt Benckiser Says It Isn't Part of Indivior Indictment
10 April 2019 - 8:36PM
Dow Jones News
By Carlo Martuscelli
Reckitt Benckiser Group PLC (RB.LN) on Wednesday disassociated
itself from its former business Indivior PLC (INDV.LN) after the
latter was hit with charges brought by U.S. prosecutors.
Indivior, a Reckitt spinoff that manufactures drugs to treat
opioid addiction, is accused of using fraudulent methods to
increase sales. FTSE 250-listed Indivior maintains that the
accusations relate to events that occurred while it was still part
of its former parent company.
Reckitt, in turn, notes that the indictment wasn't brought
against it, but against Indivior.
"We currently have no additional or new information in respect
of this matter, apart from what has been publicly issued by the
Department of Justice and Indivior Plc," Reckitt said.
The FTSE 100-listed company said it has already recognized a
$400 million provision relating to the case in its 2018
accounts.
In the indictment, the U.S. Justice Department accused Indivior
of setting up a telephone and online program intended to connect
callers with doctors that Indivior knew were prescribing Suboxone
or opioids in a "careless and clinically unwarranted manner."
The Justice Department is seeking at least $3 billion and
control of other property from Indivior. The drug-maker, which
became a standalone business in 2014, denied the charges.
Shares of Reckitt Benckiser at 1005 GMT were down 6.3%, while
Indivior's plummeted 76%.
--Maria Armental contributed to this story.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com
(END) Dow Jones Newswires
April 10, 2019 06:21 ET (10:21 GMT)
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