Reckitt Benckiser's $1.4B settlement of Suboxone Film investigations

UK-headquartered consumer products giant Reckitt Benckiser (LSE: RB) today announced it has reached agreements with the US Department of Justice (DoJ) and the Federal Trade Commission to resolve the long-running investigation into the sales and marketing of Suboxone (buprenorphine and naloxone) Film by its former prescription pharmaceuticals business Indivior (LSE: INDV), a business that was wholly demerged in 2014.

Under the terms of the agreements, Reckitt will pay a total of up to $1.4 billion to fully resolve all federal investigations into Reckitt in connection with the subject matter of the Indivior indictment and claims relating to state Medicaid programs for those states choosing to participate in the settlement. The resolution will also protect the group’s participation in all US government programs.

Despite the size of the financial settlement, market reaction was positive, with Reckitt’s shares rising 2.24% to 6,570 pence by late morning trading. This settlement removes some uncertainty from the investment case," said Credit Suisse analyst Alan Erskine.