The company has announced that it will be reducing its workforce by 300 individuals, with a focus on R&D and related roles. In addition to these layoffs, they have eliminated approximately 175 other positions by either not filling open vacancies or by not replacing employees who departed, separate from the layoffs. This decision follows the company’s prior announcement in July, where it indicated that it might need to eliminate up to 500 positions in a bid to reduce its expenses by 50% by early 2024.
As of the end of September, the company had 205 million Swiss francs ($229 million) on hand.
The main driving force behind these stringent fiscal measures is the sluggish sales performance of Idorsia’s insomnia medication, Quviviq. During the first three quarters of the year, Quviviq generated 20 million Swiss francs ($22.3 million) in revenue, with the majority stemming from the US market. Quviviq was initially launched in May 2022 and is anticipated to enter the Chinese market, with a phase 3 study underway in collaboration with partner Simcere.
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“In the third quarter we have implemented numerous measures to adapt the company. We sold our APAC (ex-China) business for 400 million Swiss francs, we reduced the workforce at headquarters by around 50%, we changed the leadership of our US commercial operations, and very importantly, we reacquired the worldwide rights to aprocitentan. I am fully aware that these measures need underpinning with additional funding in the coming months.”
– Jean-Paul Clozel, MD and Chief Executive Officer
To address its financial challenges, Idorsia made significant strategic moves. The company divested its Asia-Pacific business (excluding China) to Sosei Heptares for 400 million Swiss francs ($447 million), including rights to specific assets. Additionally, Idorsia reacquired the rights to aprocitentan from Janssen in a transaction valued at up to 306 million Swiss francs ($342 million). Notably, Janssen had previously opted into the asset in 2017, making a $230 million milestone payment.
Aprocitentan is currently under regulatory review worldwide as a treatment for resistant hypertension, with the FDA expected to make a determination by March 2024.
“With QUVIVIQ, we have a sleep therapy – which has demonstrated an outstanding safety and efficacy profile – on the market in the US and EU. With aprocitentan, we have the first antihypertensive working on a new pathway for 30 years under review with US and EU regulatory authorities, which we hope to see approved in the first half of 2024. With selatogrel and cenerimod, we have two compounds in Phase 3 development with the potential to transform treatment in their target indications, and we have several innovative assets in early development. All this gives us strategic flexibility and multiple avenues to explore potential fundraising.”
– Jean-Paul Clozel, MD and Chief Executive Officer
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Aside from aprocitentan and Quviviq, the future of other compounds in Idorsia’s pipeline remains uncertain. The company has disclosed its ongoing portfolio review, particularly in the context of potential partnership discussions, with a primary objective to prioritize assets that can be swiftly advanced with reasonable financial investment.
