Indivior has announced its decision to delist from the London Stock Exchange, citing significantly greater liquidity on the Nasdaq in the United States compared to the UK market.

As part of this strategic shift, the anti-addiction pharmaceutical company intends to terminate its secondary listing in London next month, following its primary listing switch to New York, marking another setback for the UK capital markets.

This decision aligns with broader efforts by policymakers and leaders at Paternoster Square to enhance the global attractiveness of London’s financial markets, which have experienced a wave of delistings, particularly from the life sciences sector.

Indivior, known for its medications aimed at treating substance use disorders and serious mental health issues, listed on Nasdaq in June 2023 after previously moving its main listing to the same exchange last year.

The firm was established as a separate entity from Reckitt Benckiser, a major player in the FTSE 100 consumer goods sector, in late 2014, and its European headquarters is located in Slough.

Even though most of Indivior’s revenue is generated in the US, the company maintains a manufacturing facility and research hub in Hull, where the active ingredient in its widely-used Suboxone products, buprenorphine, was first discovered.

This announcement follows a significant reorganization of Indivior’s leadership in response to critiques from Oaktree Capital, a US activist investor, alongside a decline in stock price and a substantial shareholder opposition to the re-election of certain directors, including Chairman David Wheadon, at the recent annual meeting. Following this, Indivior also considered adopting a compensation structure for directors that mirrors practices in the US, which raised concerns from Glass Lewis, a shareholder advisory service, about possible “excessive payouts” at the AGM.

After moving its primary listing to New York, Indivior kept its secondary listing in London under review. On Monday, the company stated that eliminating the London listing would “fully align” with its most promising product opportunity, Sublocade, a new anti-opioid medication, and would “better represent the company’s revenue distribution,” given that over 80% of its net revenue emanates from the US.

The company added that this move would reduce costs and complexities linked with maintaining a secondary listing, acknowledging that Nasdaq liquidity “significantly exceeds” that of the LSE, and noting that most shareholders reside in the US, which would synchronize news releases with those of its competitors.

Wheadon, 67, remarked, “A sole primary listing on Nasdaq best reflects Indivior’s business profile. We appreciate the backing from shareholders for this initiative and look forward to leveraging the anticipated benefits of this transition, including lower costs and reduced complexity.”

Indivior’s global headquarters are located in Virginia, USA, where the management faces ongoing challenges related to the opioid crisis.

In November, Oaktree, based in Los Angeles and primarily owned by Brookfield, publicly criticized Indivior’s stock performance, deeming it unsatisfactory, and accused the management of “doubling down on a failing strategy, disregarding competitive threats, and allowing expenses to rise uncontrollably.”

Former CEO Mark Crossley had previously expressed Indivior’s commitment to its UK operations, asserting that “we don’t anticipate that decreasing.”

Indivior has faced a challenging history, including expensive patent disputes and a $600 million settlement with US authorities to address criminal and civil liabilities related to the marketing of its older opioid addiction treatment, Suboxone.

On Monday, Indivior’s shares fell by 28.5p, or 3%, closing at 916p in London, reflecting a decline of nearly one-third over the past year.