To the annoyance of shareholders, shares in Idorsia were down 45% on Friday (Dec. 20) after the company announced delays to a rights deal related to its hypertension drug Tryvio. On November 27, 2024, the Allschwil-based company announced that it had entered exclusive negotiations with an undisclosed party for global rights to aprocitentan, sold under the brand name Tryvio, that resulted in an exclusivity fee of USD 35 million paid in early December. At that time, the company was targeting signing an agreement before the end of 2024 and closing in early 2025, with more details to be shared should a final agreement be signed. In addition, the company announced plans to streamline its business to reduce costs and restructure its outstanding debt.
Idorsia said on Friday that it believes signing will not be achieved in 2024. Negotiations with the undisclosed party continue, however the company cannot guarantee that an agreement can be reached. As a result, Idorsia is considering options to extend the company’s operational cash runway to bridge to a potential binding offer, as well as all strategic options.
André C. Muller, CEO of Idorsia, (Image credit: Idorsia LinkedIn)
“Signing the agreement for aprocitentan is a crucial first step to ensure the future of Idorsia. Based on our current liquidity forecasts, there are additional prerequisites to allow the company to continue to operate, which include the completion of the recently announced company restructuring; the restructuring of the company’s outstanding debt, including the 2025 and 2028 convertible bonds; and raising additional funding. As a result of these constraints and the delay to the completion of the aprocitentan agreement, we are also considering all strategic options beyond a deal for aprocitentan” André C. Muller, CEO of Idorsia, commented.
Idorsia expects to close 2024 with cash of at least CHF 70 million including the USD 35 million exclusivity fee. The company could end 2024 with cash of around CHF 100 million, should an additional deal close in the coming days.
Should the potential agreement for the rights to aprocitentan conclude in a timely manner, in-line with the upfront payment anticipated in the non-binding offer, and subject to the CB 2025 restructuring, Idorsia would be funded until mid-2025.
The biopharmaceutical company is diligently seeking additional funding of at least CHF 200 million to extend its operational cash runway into at least 2026. The company posted a net loss of Sfr180m ($204m) for the first nine months of 2024. Idorsia was listed on the SIX Swiss Exchange in June 2017.
Idorsia at a Glance
Founded: 2017 Headquarters: Allschwil, Switzerland Employees: 750 Assets in portfolio: >10 Market capitalisation: $151.7m
