After a 194% Surge, Here's Why a Top Fund Just Trimmed Its Biotech Stake

WhaleMinion · 2025-12-31T15:03:35+00:00

Indivior's stock surged 194% in a year, prompting Stonepine Capital to reduce its holdings, indicating a strategic rebalance rather than panic selling. Despite strong financials and guidance, the stock's rise reflects existing optimism, shifting focus to management's ability to sustain growth.

WhaleMinion

2025-12-31 15:03:35

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The Contrarian Move Behind the Numbers

Indivior (NASDAQ: INDV) has been on an absolute tear—up 194% over the past year while the broader S&P 500 crawled just 15% higher. But here’s where it gets interesting: Oregon-based Stonepine Capital Management just hit the brakes, offloading 250,000 shares worth approximately $2.75 million during Q3, according to an SEC filing from November 13.

The fund’s Indivior holding dropped from 350,000 shares to just 100,000, representing a dramatic pullback from 5.06% of reportable AUM down to a modest 1.96%. Yet Stonepine didn’t dump the position entirely—a telling sign that conviction remains even as the fund rebalances.

The Fundamentals Are Actually Getting Stronger

Here’s what makes the timing noteworthy: Indivior’s financial engine is firing on all cylinders. In Q3 alone, the specialty pharma company generated $314 million in revenue, with flagship drug SUBLOCADE racking up $219 million in sales—a 15% year-over-year jump that’s accelerating, not slowing.

Adjusted EBITDA climbed 14% to $120 million, signaling that profitability improvements aren’t just accounting tricks. Management raised full-year 2025 guidance substantially, now targeting $1.18-$1.22 billion in revenue paired with as much as $420 million in adjusted EBITDA. They’ve also outlined plans to cut $150 million in annual operating expenses starting next year.

Portfolio Math 101: When to Trim Winners

Stonepine’s move wasn’t panic selling—it was textbook portfolio rebalancing. After a 194% run, position sizing becomes critical for long-term wealth building. The fund still maintains meaningful exposure to biotech, with Indivior alongside holdings like ADMA, ZVRA, and EOLS, but with more measured conviction.

The Company Behind the Numbers

Indivior PLC develops buprenorphine-based treatments for opioid use disorder alongside therapies for substance use conditions, overdose prevention, and schizophrenia. Beyond SUBLOCADE, the portfolio includes SUBUTEX PRO, SUBOXONE, OPVEE, and PERSERIS—a arsenal targeting one of healthcare’s most critical challenges.

The numbers speak for themselves:

Market Cap: $4.53 billion
TTM Revenue: $1.18 billion
TTM Net Income: $124 million
Stock Price: $36.21 (as of Friday)

What’s Priced In Now

After years of turnaround uncertainty, Indivior finally has operational momentum. But here’s the reality: the stock’s 194% surge already reflects much of that good news. From this point forward, returns depend less on recovery narratives and more on whether management can sustain growth, maintain cost discipline, and execute beyond 2025.

Stonepine’s partial exit signals a shift from betting on turnaround upside to monitoring execution on delivered expectations—a smart move when fundamentals are improving but valuations have already caught up.

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