Indivior shrinks board following pressure from activist investor

(Sharecast News) - Indivior has further overhauled its board, including reducing its size, following pressure from activist investor Oaktree Capital Management. The US-based drugs group said it would reduce the size of the board to seven directors, all of whom will stand for re-election at May's annual general meeting.

According to Indivior's website, its board currently consists of 11 directors, including outgoing chief executive Mark Crossley.

Neither Peter Bains nor Jo LeCouilliard, chair of the compensation committee, will seek re-election at the AGM, Indivior said. The operational committee will also be discontinued.

In addition, independent non-executive direct Robert Schriesheim has stepped down with immediate effect, less than three months into the role.

Schriesheim's replacement will be subject to Oaktree's approval. If a replacement is not confirmed by 1 July, however, Oaktree will be able to nominate a further non-executive director to the board, bringing the total number of directors up to eight.

At the time of his appointment in December, Indivior praised Schriesheim's "extensive" experience in speciality pharmaceuticals

The owner of substance abuse treatment Sublocade has benefited from the US's opioid epidemic. But it has increasingly been hit by growing competition.

The firm warned on profits last year, sending shares sliding and prompting Oaktree - one of its largest shareholders - to demand change.

In a letter published last November, Oaktree accused Indivior of "doubling down on a failing strategy, ignoring competitive threats and allowing costs to spiral".

In response, Indivior agreed to a number of changes, including finance chief Ryan Preblick stepping down from his board role, to better align with US listed company practice.

Indivior, which was spun out of Reckitt Benckiser just over a decade ago, dual-listed on Nasdaq in 2023 before announcing last year it would switch its primary listing to New York. It is headquartered in the US but maintains research and development capabilities in the UK.

Crossley is being replaced by Joe Ciaffoni, who joined the board as a non-executive at the same time as Schriesheim, as part of an agreement with Oaktree. Formerly Indivior's finance director, Crossley has been chief executive since June 2020.

New chair David Weadon was appointed in January, replacing Graham Hetherington.

Indivior said on Tuesday: "In connection with these changes, Indivior and Oaktree have entered into an amended and restarted relationship agreement which contains, among other things, customary obligations and undertakings of mutual support."