By Helena Smolak
Idorsia, a Swiss biotechnology company, saw its shares drop by 9.3% to CHF1.69 after announcing that it is continuing its search for funding. Although the recent sale of assets to Sosei Group and cost savings have provided cash until the first quarter of 2024, the company remains focused on extending its cash runway.
As of September 30, Idorsia reported liquidity of 255 million Swiss francs ($286.1 million), an increase from CHF33 million in June, but a decrease from CHF466 million at the end of last year. With the sale of its Asia-Pacific operations (excluding China) to Sosei and an ongoing cost-cutting plan, the company’s Chief Financial Officer, Andre C. Muller, expressed confidence in the company’s ability to manage its cash cover.
While actively exploring various avenues to extend their cash runway, Idorsia is open to potential out-license deals. They are particularly considering opportunities involving their insomnia drug, Quviviq, and their hypertension medicine, aprocitentan, which is awaiting regulatory approval in the U.S. and Europe. Additionally, the company is evaluating other assets within its pipeline.
Despite adjusting its operating loss projection to CHF670 million (compared to the previous estimate of CHF735 million), Idorsia reported an operating profit of CHF231 million for the third quarter. This turnaround was primarily attributed to the Sosei deal.
The biotech firm remains determined to secure the necessary funding for future endeavors.