Viatris and Idorsia Sign $350M R&D Deal for Phase III Drugs

Swiss pharmaceutical company Idorsia has secured a significant financial boost from Viatris, a U.S.-based pharmaceutical firm, in a deal valued at $350 million. The agreement grants Viatris the global development and commercialization rights to two of Idorsia's late-stage drug candidates.

The two advanced candidates included in this agreement are selatogrel, a P2Y12 inhibitor intended for the treatment of acute myocardial infarction, and cenerimod, a drug aimed at treating lupus. To ensure a smooth regulatory approval process for these drugs, a joint development committee will be established to oversee their progression.

Idorsia's financial situation had become quite precarious, with the company's cash reserves nearing depletion. The infusion of $350 million provides Idorsia with crucial liquidity. Andre Muller, Idorsia's CFO, emphasized the importance of this financial lifeline, stating that this substantial upfront payment addresses an urgent need for funds. He also noted that the company is actively exploring various funding avenues to enhance its financial stability, including business development opportunities and equity deals.

According to the terms of the agreement, Idorsia will invest $200 million over the next three years and will also transfer the necessary personnel for both drug programs to Viatris. In addition to the initial payment, Idorsia stands to gain further financial benefits through potential development and regulatory milestone payments, sales milestones, and tiered royalties on annual net sales.

Viatris will acquire the global commercialization rights for selatogrel and cenerimod, with specific exceptions in South Korea, Japan, and some other countries in the Asia-Pacific region. Additionally, Viatris has been granted a right of first refusal and first negotiation for other drug assets in Idorsia's portfolio. This portfolio includes treatments for a wide array of diseases, such as type 1 diabetes, multiple sclerosis, immune-mediated disorders, and Fabry disease.

Scott Smith, CEO of Viatris, expressed optimism about the collaboration. He highlighted the synergy between Idorsia's innovative drug development capabilities and Viatris' robust global infrastructure. Smith believes that this partnership will enable both companies to unlock the full potential of the late-stage drug candidates and any future developments. The goal is to build a durable and predictable portfolio that contributes meaningfully to Viatris' long-term business strategy.

In recent regulatory news, Viatris received FDA approval for Ryzumvi, a phentolamine ophthalmic solution, in September 2023. Developed in collaboration with Ocuphire, this drug is designed to reverse pharmacologically induced mydriasis.

This strategic partnership underscores both companies' commitment to advancing innovative treatments and addressing unmet medical needs on a global scale.