UK firm Reckitt Benckiser has confirmed detailed of its plans to demerge its pharmaceuticals business.
The RB Pharmaceuticals (RBP) unit will be spun-off with a separate UK listing as Indivior, which will be UK domiciled and traded on the London Stock Exchange’s main market for listed securities.
The new company will be led by RBP CEO Shaun Thaxter, who said: “I look forward to partnering with the Indivior executive committee and board to further build upon the strong foundation set by Reckitt Benckiser Pharmaceuticals under the guidance of RB as we transition to a sustainable, stand-alone organisation.
“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.”
The decision to spin-out its pharma business was part of a strategic review of Reckitt’s wider business and will allow it to focus on its core aim of being a global leader in consumer health and hygiene.
The company’s pharma sales shrank 8% in the first half of this year to £344m, while the remainder of the group saw net revenues decline 7% to £4.67bn.
RBP generates nearly all its revenues from Suboxone (buprenorphine and naloxone), used for the treatment of opioid dependence, and – while prescription volumes for the product grew in the US – downward pricing pressure and a reduction in market share took their toll.
Meanwhile, RBP has been on the acquisition trial to boost its consumer health unit, busying Schiff Nutrition, OTC products from Bristol-Myers Squibb and Johnson & Johnson (J&J) subsidiary K-Y, although it was unable to secure a deal for Merck & Co’s OTC business.
If the demerger – which has the full backing of Reckitt Benckiser’s board – proceeds, RB shareholders will receive one Indivior ordinary share for each RB ordinary share held.
Subject to shareholder approval the demerger is expected to be completed on December 23 of this year.