Reckitt Benckiser Says It Isn't Part of Indivior Indictment

Date : 04/10/2019 @ 11:36AM
Source : Dow Jones News
Stock : Reckitt Benckiser PLC (PK) (RBGLY)
Quote : 15.68  0.465 (3.06%) @ 9:59PM
Reckitt Benckiser (PK) share price Chart

Reckitt Benckiser Says It Isn't Part of Indivior Indictment

Reckitt Benckiser (LSE:RB.)
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   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)

Copyright (c) 2019 Dow Jones & Company, Inc.

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