Idorsia, a pharmaceutical company, is cutting costs and restructuring due to financial struggles. They planned to sell the global rights to their hypertension drug, Tryvio (also known as aprocitentan), for $35 million, but the deal fell through because the buyer backed out. The company’s CEO, André C Muller, expressed disappointment but said they will look for other partners. Tryvio, approved in the US and Europe in 2024, is used to treat hypertension.
Idorsia also adjusted its partnership with Viatris, another pharmaceutical company. They originally planned to pay $100 million for developing two drugs, elatogrel and cenerimod, but due to low funds, they won’t make this payment. Instead, they’ll miss out on $250 million in potential payments and give more rights to Viatris for cenerimod.
The failure of the Tryvio deal means Idorsia must find other ways to get cash, leading to changes in their agreement with Viatris and restructuring their finances. Despite the setback, their stock price rose by 5% after announcing new funding. Idorsia reported a loss of $204 million for the first nine months of 2024 and is working to improve its cash flow. They plan to cut 270 jobs to save on research and development costs.
Their insomnia drug, Quviviq (daridorexant), is currently their best-seller, with $35.1 million in revenue in 2023. Idorsia predicts sales will reach $61.4 million in 2024 and expects the drug to become profitable by 2026.