BUZZ-Indivior: Citi tips spinoff to outperform parent

** Indivior (Other OTC: INVVY - news) initiated at "Buy" by Citi, expects co to outperform former parent Reckitt Benckiser (Xetra: A0M1W6 - news)

** High risk/reward: says market pricing in high probability (> 90 pct) of negative litigation outcome on main product Suboxone (c. 75 pct revenues)

** Citi says any impact unlikely to be felt until 2019, allowing co time to replace lost revenues

** Pharma demergers (Abbvie (Xetra: 4AB.DE - news) , Zoetis (NYSE: ZTS - news) , Mead Johnson ) tend to outperform parents, bank points out. Chart on pharma demergers: http://link.reuters.com/vek73w

** Citi values stock at 10.2x 2016 earnings, below peer group figure of 19.4, according to Thomson Reuters data

** Reckitt Benckiser up 1.6 pct

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)