Switzerland-based Idorsia is selling the majority of its Asia Pacific business operations, including Pivlaz (clazosentan) and regional licensing rights to daridorexant, to Sosei Group Corporation for SFr400m ($461m).
The deal excludes operations in China.
Idorsia will have transition service agreements with Sosei for regulatory, developmental and other activities. Furthermore, it will supply Pivlaz and daridorexant to Sosei.
Additionally, the Swiss company will review its research and development pipeline and product portfolio to access its commercial viability. Those deemed unviable in accordance with the company's priorities will be either paused or out-licensed.
The company reported a substantial reduction in research and development investment citing lower-than-expected sales for its poor financial status. It also launched a cost reduction initiative, starting in 2024, to halve cash burn.
Idorsia CEO Jean-Paul Clozel said: “Idorsia’s immediate objective is therefore to maximise the time the company has to deliver commercial success with its products. This means making any funds that are raised last as long as possible by significantly reducing our global cash burn.
“The cost reduction initiative together with potential collaborations will give the company the time it needs to realise the value we have created. I deeply regret having to launch such an initiative, but we simply cannot sustain current investment levels.”
To that end, the company is also planning layoffs for up to 500 positions. This is consistent with the current atmosphere in the pharmaceutical sector, with Pieris Pharma laying off 70% of its workforce due to AstraZeneca terminating the research partnership, and Amarin restructuring to reduce costs due to low profits.
