Zurich (awp) – The Rhine laboratory Idorsia has entered into exclusive negotiations on the global rights to its treatment for resistant hypertension aprocitentan, approved in the United States under the brand Tryvio and Jeraygo on the Old Continent. The exclusivity bonus of $35 million agreed for this purpose should enable the company, which is struggling with its liquidity, to cover its financial obligations until next year. Further drastic cuts in the workforce are also being considered.
If applicable, the agreement should also include the usual initial payment, milestone payments and commissions on sales, specifies a press release released on Wednesday. The talks also concern a transfer of Idorsia employees working on aprocitentan. The Allschwil firm hopes to sign an agreement before the end of the current year and finalize the transaction at the start of the next.
A transfer of rights to this duly approved treatment would, however, only constitute a step on the road to the company’s recovery. “We are also deploying cost reduction initiatives and a program to restructure our debt,” indicates general manager (CEO) André Muller, quoted in the publication.
New cuts in sight
Management has already launched a consultation process on a new workforce reduction plan, to the tune of 270 positions in the areas of research and development, as well as in support functions. Natural departures, early retirements and transfers to a buyer of aprocitentan should reduce the number of layoffs to be made.
Cost management will also involve a reduction in the number of projects under active development and new transfers of rights.
Plagued by financing concerns for two years now, Idorsia has already sold a research building in the fall of 2022 for 164 million Swiss francs, its activities in Asia-Pacific in the summer of 2023 for 400 million, or even the development and marketing rights for selatogrel, developed in the cardiac field, as well as cenerimod, against systemic lupus erythematosus at the start of the year for 350 million dollars.
Already 475 positions eliminated
A first part of restructuring announced in July 2023 involved the elimination of 475 positions at the Allschwil headquarters, out of a workforce of 1,300 employees at the time. Idorsia also obtained from its creditors at the beginning of May 2024 a revision of the conditions for a convertible loan of 200 million Swiss francs, pushing back the maturity to mid-January 2025 and reducing the conversion price.
Founder, director and then general manager (CEO) of the company, Jean-Paul Clozel had put his hand into his pocket in June 2023, granting a bridging loan of 75 million Swiss francs.
Noting that the exclusivity bonus should allow Idorsia to survive the year which is ending, Stefan Schneider notes that the horizon is not yet clear. The proceeds from a transfer of the rights to aprocitentan will largely return to Janssen, which had transferred the said rights to Idorsia in September 2023.
Although he appreciates the efforts to reduce costs and restructure debt, analyst Vontobel still struggles to identify future sources of income and prefers to refrain from any recommendation on the company’s stock.
At 9:49 a.m., the Idorsia registered stock rebounded by 11% to 84.5 cents, a level far removed from the more than 20 Swiss francs posted by the title at the start of 2022.
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