Swiss biopharmaceutical company, Idorsia, experienced a 13% drop in shares on Tuesday while it continues to pursue additional funding. This comes despite the company's efforts to secure liquidity through Q1 2024, which include selling its Asia-Pacific operations (excluding China) to Sosei Group and implementing an aggressive cost-cutting plan.
The company's CFO reported that the deal with Sosei and a portfolio simplification strategy have significantly boosted cash cover. Despite these measures, the company's liquidity of CHF255 million ($286.1 million) is lower than last year's CHF466 million, although it is a notable increase from June's CHF33 million.
Idorsia registered a Q3 operating profit of CHF231 million, a significant turnaround from the previous year's losses. The company now anticipates a CHF670 million operating loss for the year, down from the initial estimate of CHF735 million. This reduction is largely attributed to the beneficial impact of the Sosei deal.
In addition to these measures, out-license deals for two of its drugs - insomnia medication Quviviq and hypertension drug aprocitentan - are currently under consideration as part of Idorsia's ongoing efforts to bolster its financial position.
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