Idorsia Reports Q1 2024 Financial Results with Renewed Vigor

Idorsia Ltd of Allschwil, Switzerland, has disclosed its first-quarter financial results for 2024. The company's collaborative efforts with Viatris, global launches of QUVIVIQ™ (daridorexant), and the recent approval of TRYVIO™ (aprocitentan) by the US FDA mark significant milestones.

In a strategic collaboration with Viatris, Idorsia will focus on the development and commercialization of selatogrel and cenerimod. Viatris has paid Idorsia an upfront consideration of USD 350 million, with potential milestone payments that could sum up to USD 2.1 billion.

QUVIVIQ™ (daridorexant), a medication for insomnia, achieved CHF 10 million in net sales during Q1 2024. The company plans further launches in Europe to bolster sales. The drug's descheduling petition in the US is progressing, potentially enhancing its market reach.

The company's financial performance for the first quarter showed net revenue of CHF 10 million, influenced by QUVIVIQ's sales. This is a reduction from CHF 21 million in Q1 2023, which included sales from PIVLAZ in Japan and revenue share from Johnson & Johnson. Idorsia's US GAAP operating expenses benefitted from extraordinary income due to the Viatris deal, resulting in a negative expense of CHF 20 million, compared to CHF 219 million during the same period the previous year. Consequently, the company reported a net income of CHF 30 million for Q1 2024, a notable improvement from a net loss of CHF 212 million in Q1 2023.

The Viatris deal significantly impacted Idorsia's financials. Non-GAAP operating expenses were CHF 96 million, compared to CHF 202 million in the previous year. The non-GAAP net loss was CHF 86 million, a substantial reduction from CHF 189 million in Q1 2023. The company anticipates QUVIVIQ net sales of around CHF 55 million for 2024, with a non-GAAP operating loss expected to be around CHF 420 million.

Commercially, QUVIVIQ has made substantial inroads across multiple regions. In the US, the drug's net sales hit CHF 6.5 million, with over 140,000 patients treated and almost 400,000 prescriptions dispensed to date. The company has focused on building a recognizable brand through direct-to-consumer campaigns and copay programs. Medicare Part D coverage began in January 2024, potentially expanding market access.

In Europe and Canada, QUVIVIQ's net sales reached CHF 3.5 million in Q1 2024. The drug has been launched in several European countries and is included in treatment guidelines for insomnia. In Germany, QUVIVIQ is now the only sleep medication approved for long-term treatment of chronic insomnia. In Italy and Switzerland, the company is working on expanding prescriber bases and securing reimbursement. Spain, representing Europe’s largest insomnia market, has also seen a solid start following QUVIVIQ's self-pay market launch. In the UK, QUVIVIQ has achieved full reimbursement and is recommended as a first-line treatment for chronic insomnia.

TRYVIO™ (aprocitentan) was approved by the US FDA in March 2024 for treating hypertension in combination with other antihypertensive drugs. Idorsia plans to make this drug available to US patients in the second half of the year. Additionally, the European Committee for Medicinal Products for Human Use (CHMP) has recommended aprocitentan for approval in Europe under the trade name JERAYGO™.

The company's research and development pipeline remains robust, with innovative drugs targeting various therapeutic areas, including CNS, cardiovascular, and immunological disorders. The collaboration with Viatris ensures continued support for the development of selatogrel and cenerimod, with a joint development committee overseeing the Phase 3 programs.

Idorsia’s financial outlook for 2024 includes a projected non-GAAP operating loss of around CHF 420 million, excluding contract revenues and a one-off benefit from the Viatris deal. The company remains focused on controlling costs, exploring funding avenues, and evaluating potential launch strategies for TRYVIO.

Liquidity at the end of Q1 2024 stood at CHF 335 million, with total indebtedness amounting to CHF 1,293 million. Despite challenges, the company’s leadership remains optimistic about the future, with a strong emphasis on innovation and strategic partnerships.