FX.co ★ Idorsia In Talks For Global Rights To Aprocitentan; To Cut 270 Jobs

Idorsia Ltd, a Swiss biotechnology company, announced on Wednesday that it has entered into exclusive negotiations with an undisclosed entity regarding the global rights to aprocitentan. This medication is a once-daily, orally administered dual endothelin receptor antagonist. As part of this arrangement, Idorsia will receive an exclusivity fee of $35 million, which will extend its financial resources until 2025.

The company also revealed plans to streamline its operations, which may result in a reduction of approximately 270 positions worldwide. These changes will primarily affect Research & Development and support functions at its headquarters. The potential agreement to transfer global rights to aprocitentan may include an upfront payment, additional milestone payments, and tiered royalties on sales.

Furthermore, Idorsia is taking actionable steps to manage costs and restructure its outstanding debt. The company plans to complete its restructuring process by the end of 2024, with full cost reduction benefits expected by the second quarter of 2025.

Aprocitentan received approval as TRYVIO in the United States in March and gained market authorization as JERAYGO from the European Commission in June.

André Muller, CEO of Idorsia, commented, "We aim to finalize the agreement by the end of 2024 with closure anticipated in early 2025. Additional details will be provided upon signing a final agreement. This is an essential initial step toward placing Idorsia in a financially sustainable position and advancing towards profitability."