Idorsia | Financial Information

The company reports on its financial performance on a quarterly basis starting its financial year on January 01.

Highlights

Viatris collaboration: Global research and development collaboration, focused on the development and commercialization of two innovative compounds, selatogrel and cenerimod.
Adapted governance: On June 13, 2024, Jean-Paul Clozel retired from his position as CEO of Idorsia and was elected as Chairman. André C. Muller was appointed as CEO.

QUVIVIQ™ (daridorexant): ): Total net sales of CHF 23.6 million in HY 2024.
QUVIVIQ in the US: Sales increase despite a substantial reduction in sales representatives.
QUVIVIQ in Europe: Sales acceleration due to increased demand.

TRYVIO™ (aprocitentan): Approved by the US FDA in March 2024.
JERAYGO™ (aprocitentan): Approved by the European Commission in June 2024.
Daridorexant: Positive topline results in Phase 4 study in patients with insomnia and comorbid nocturia – to be presented at upcoming scientific congresses.
Daridorexant: Positive Phase 3 by Simcere in Greater China – NDA submitted.
IDOR-1134-2831: First healthy participant entered Phase 1 program for Idorsia’s first synthetic glycan vaccine, targeting Clostridium difficile infection.

Net revenue HY 2024 at CHF 26.4 million.
US GAAP operating expenses HY 2024 at CHF 94 million benefiting from extraordinary income from Viatris deal with non-GAAP operating expenses HY 2024 at CHF 200 million.
US GAAP operating loss HY 2024 of CHF 64 million and non-GAAP operating loss of CHF 170 million.
Convertible bond 2024: Higher cantonal composition authority approved the amendments to the terms of the 2024 convertible bonds.

Financial Guidance

“We have tightly controlled our expenses in the first half enabling us to slightly reduce the R&D OPEX guidance, improving the overall outlook for 2024. The actions we’ve taken in the first half of 2024, namely the Viatris deal and the restructured convertible bond, have given us the time to ensure we have the optimal deal for aprocitentan.”

Arno Groenewoud (July 2024)
Chief Financial Officer

For 2024 – excluding unforeseen events – the company expects QUVIVIQ net sales of around CHF 55 million; SG&A expenses of around CHF 300 million; R&D expense of around CHF 145 million for Idorsia-led pipeline assets; non-GAAP operating expenses of up to CHF 455 million. This performance would result in a non-GAAP operating loss of around CHF 400 million (excluding contract revenues and the one-off benefit from the Viatris deal).

The company expects US GAAP operating loss for 2024 to reach CHF 320 million which includes a one-off benefit of CHF 125 million from the Viatris deal.

Financial Result

US GAAP results

	First Half
in CHF millions, except EPS (CHF) and number of shares (millions)	2024	2023
Net revenues	26	51
Operating expenses	(94)	(426)
Operating income (loss)	(64)	(375)
Net income (loss)	(79)	(405)
Basic EPS	(0.44)	(2.28)
Basic weighted average number of shares	179.5	178.1
Diluted EPS	(0.44)	(2.28)
Diluted weighted average number of shares	179.5	178.1

Net revenue of CHF 26 million in the first half of 2024 is the result of QUVIVIQ product sales and contract revenue recognized in connection with Owkin (CHF 3 million). This compares to CHF 51 million in the first half of 2023, which included CHF 32 million sales of PIVLAZ in Japan (assigned in the meantime to Nxera Pharma as part of a transaction, more details can be found in the dedicated press release) and CHF 2 million revenue share from Johnson & Johnson related to ponesimod sales (revenue-sharing agreement now eliminated as part of the reacquisition of aprocitentan, more details can be found in the dedicated press release).

US GAAP operating expenses in the first half of 2024 benefited from extraordinary income of CHF 125 million from the Viatris deal resulting in an expense of CHF 94 million (CHF 426 million in the first half of 2023), of which CHF 4 million related to cost of sales (CHF 5 million in the first half of 2023), CHF 71 million to R&D expenses (CHF 172 million in the first half of 2023), and CHF 142 million to SG&A expenses (CHF 249 million in the first half of 2023).

US GAAP net loss in the first half of 2024 amounted to CHF 79 million (CHF 405 million net loss in the first half of 2023). The decrease of the net loss is mainly attributable to the one-off income related to the Viatris deal but was also driven by lower operating expenses throughout all functions.

The US GAAP net income resulted in a basic net loss per share of CHF 0.44 (basic and diluted) in the first half of 2024, compared to a net loss per share of CHF 2.28 (basic and diluted) in the first half of 2023.

Non-GAAP* measures

	First Half
in CHF millions, except EPS (CHF) and number of shares (millions)	2024	2023
Net revenues	26	51
Operating expenses	(200)	(393)
Operating income (loss)	(170)	(342)
Net income (loss)	(183)	(369)
Basic EPS	(1.02)	(2.07)
Basic weighted average number of shares	179.5	178.1
Diluted EPS	(1.02)	(2.07)
Diluted weighted average number of shares	179.5	178.1

* Idorsia measures, reports and issues guidance on non-GAAP operating performance. Idorsia believes that these non-GAAP financial measurements more accurately reflect the underlying business performance and therefore provide useful supplementary information to investors. These non-GAAP measures are reported in addition to, not as a substitute for, US GAAP financial performance.

Non-GAAP net loss in the first half of 2024 amounted to CHF 183 million: the CHF 104 million difference versus US GAAP net income was mainly due to the one-off effect of the Viatris deal (CHF 125 million income), depreciation and amortization (CHF 8 million), and share-based compensation (CHF 10 million).

The non-GAAP net loss resulted in a net loss per share of CHF 1.02 (basic and diluted) in the first half of 2024, compared to a net loss per share of CHF 2.07 (basic and diluted) in the first half of 2023.

Company Funding

Liquidity as of June 30, 2024

At the end of the first half of 2024, Idorsia’s liquidity amounted to CHF 237 million.

Total debt as of June 30, 2024

Type of debt	Jun 30, 2024	March 31, 2024	Dec 31, 2023
Convertible loan	CHF 335 million	CHF 335 million	CHF 335 million
Convertible bond	CHF 797 million	CHF 797 million	CHF 796 million
Other financial debt	CHF 162 million	CHF 162 million	CHF 162 million
Total indebtedness	CHF 1,294 million	CHF 1,293 million	CHF 1,293 million