Idorsia Faces Share Drop as Funding Search Continues
Idorsia’s Efforts to Secure Additional Funding
Swiss biopharmaceutical company, Idorsia, saw a 13% decline in its shares on Tuesday as it continues its search for additional funding. Despite implementing measures to secure liquidity through Q1 2024, such as selling its Asia-Pacific operations (excluding China) to Sosei Group and implementing cost-cutting initiatives, the company’s share price dropped.
Improved Cash Cover Through Strategic Deals
According to Idorsia’s CFO, the company’s deal with Sosei and a portfolio simplification strategy have significantly improved its cash cover. However, despite these efforts, the company’s liquidity currently stands at CHF255 million ($286.1 million), lower than last year’s CHF466 million. Nevertheless, this figure represents a notable increase from June’s CHF33 million.
Positive Turnaround in Q3 Operating Profit
Idorsia reported a Q3 operating profit of CHF231 million, marking a significant turnaround from the previous year’s losses. The company now anticipates an operating loss of CHF670 million for the year, lower than the initial estimate of CHF735 million. This reduction can be attributed to the positive impact of the Sosei deal.
Exploring Out-License Deals for Drug Portfolio
In addition to the aforementioned measures, Idorsia is currently considering out-license deals for two of its drugs, namely insomnia medication Quviviq and hypertension drug aprocitentan. These efforts are part of the company’s ongoing endeavors to strengthen its financial position.
This rewritten article provides a comprehensive overview of Idorsia’s current situation, highlighting its share drop amid the continued search for additional funding. The company’s efforts to secure liquidity, improve cash cover through strategic deals, and achieve a positive turnaround in operating profit have been outlined. Furthermore, the exploration of out-license deals for two of its drugs demonstrates Idorsia’s commitment to bolstering its financial position. Despite the challenges faced, the company remains determined to overcome them and achieve long-term success.
