Idorsia (IDIA) H1 2024 earnings summary

Executive summary

• Leadership transition completed with new CEO and CFO, focusing on maximizing value from key assets and aligning R&D priorities with funding.

• Advanced key pipeline assets: selatogrel and cenerimod collaboration with Viatris, and aprocitentan (TRYVIO/JERAYGO) approvals in the US and EU.

• QUVIVIQ NDA submitted in Greater China; Clostridium Difficile vaccine entered Phase 1 clinical development.

• Major cost reduction initiative targeting a 50% reduction in headquarters cash burn, with up to 500 positions affected.

• Material uncertainty exists regarding ability to continue as a going concern due to insufficient liquidity for the next 12 months.

Financial highlights

• Revenue for H1 2024 was CHF 26 million, up from CHF 19 million proforma in HY 2023, but down from CHF 51 million in H1 2023 due to APAC divestiture.

• R&D costs reduced to CHF 61 million in H1 2024, mainly from cost-saving initiatives and Viatris deal.

• SG&A costs down to CHF 134 million in HY 2024 from CHF 216 million proforma in HY 2023.

• Non-GAAP operating loss at CHF 170 million, over 50% lower than H1 2023.

• Liquidity at June 30, 2024 was CHF 237 million, up from CHF 145 million at year-end 2023, but not sufficient for the next 12 months.

Outlook and guidance

• 2024 revenue guidance: CHF 70 million (global and partnered business combined).

• US GAAP operating loss for 2024 expected at CHF 320 million, including the Viatris one-off; non-GAAP operating loss forecasted at CHF 395–400 million, excluding one-offs.

• TRYVIO US commercial launch planned for early 2025, with supply, REMS, and MSL team preparations underway.

• Company is actively seeking additional funding through out-licensing, monetization, equity, or debt, but there is no guarantee of success.

• Amendments to the 2024 convertible bond extend maturity to January 2025, pending final approval.