Idorsia is on the restructuring path again as it looks to claw back outstanding debt after finishing a cost-reduction initiative earlier this year.
The Swiss pharma company has outlined around 270 positions globally that could become redundant, along with a potential sale of recently approved hypertension treatment Tryvio (aprocitentan), as per a 27 November press release. Idorsia said it plans to conclude restructuring by the end of this year, with the cost reduction becoming fully effective by Q2 2025.
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By GlobalDataShares in Idorsia opened 17.5% higher at market open compared to a pre-announcement market close. The company has a market cap of $151.7m.
Idorsia, which posted a net loss of Sfr180m ($204m) for the first nine months of 2024, has struggled with hitting its sales targets in recent years. Insomnia treatment Quviviq (daridorexant) is the company’s top-selling drug, bringing in revenue of $35.1m last year, though this has not been enough to consistently extend its cash runway since its US Food and Drug Administration (FDA) approval in 2022.
The company did have a regulatory win earlier this year, gaining FDA approval for Tryvio in March. At the time, Idorsia said it was the first oral anti-hypertensive therapy that works via a new therapeutic pathway to be approved in almost 40 years. Just eight months later, the company has entered into exclusive negotiations to sell global rights to the drug. The talks—with an undisclosed party —will see Idorsia receive an exclusivity fee of $35m, extending the company’s cash runway into 2025. An upfront payment, additional milestone payments, and tiered royalties on sales are also on the cards depending on the final deal reached.
Idorsia’s CEO André C Muller said: “We are targeting signing before the end of 2024 and closing in early 2025, more details will be shared should a final agreement be signed.”
Idorsia’s latest restructuring plan also focuses on curbing research & development (R&D) activity, with the approximately 270 at-risk positions “mainly” in this department, as well as support functions at headquarters. The company added it would minimise the number of potential redundancies such as allowing some employees to transfer along with Tryvio to the buying party.
“I am confident that our plan is achievable within the next few months, and that will allow us to shift our focus back to our products,” Muller added.
The current restructuring is just the latest in a long line of business changes made by Idorsia to stabilise financial performance. The company cut around 475 positions at its headquarters in Switzerland in July 2023, again mainly coming from the R&D department. In the same month, the company sold its operating businesses in the Asia-Pacific region to Sosei Heptares, now known as Nxera Pharm, for $453.4m. Then in February this year, the company sold global rights for two Phase III candidates to Viatris for $350m.
