Idorsia announces a cost reduction initiative to be implemented by the end of 2023
21 Luglio 2023 - 7:00AM
Idorsia announces a cost reduction initiative to be implemented by
the end of 2023
Ad hoc announcement pursuant to Art. 53 LR
- In order to give Idorsia the necessary time to realize
commercial success – any funds that are raised must be prioritized
on activities to maximize their return in the near-term.
- The cost reduction initiative is dependent on a full portfolio
review, potential out-licensing deals, and an employee
representative consultation in Switzerland.
- The company is launching the initiative with the target of a
reduction in cash-burn at headquarters by approximately 50% to
become fully effective in early 2024.
- Up to 500 positions at Idorsia Pharmaceuticals Ltd, mainly in
Research & Development and the associated support functions,
could become redundant.
Allschwil, Switzerland –
July
21, 2023Idorsia
Ltd (SIX: IDIA) today announced that it has launched a cost
reduction initiative with the target to reduce cash-burn at
headquarters by approximately 50%. Due to Idorsia’s challenging
financial situation, which is the result of lower than anticipated
product sales and a difficult global financial environment, the
company must substantially reduce investment in research and
development and focus on activities crucial to the company’s
immediate objective, which is to maximize the time the company has
to deliver commercial success with its products.
The company will review the research and development pipeline
and product portfolio with the objective to prioritize assets that
can be advanced rapidly and with reasonable financial investment.
Following the portfolio review, those projects not aligned to the
company priorities will be either paused or prepared for
partnership or out-licensing.
Up to 500 positions could become redundant, mainly in Research
& Development and the associated support functions. Idorsia’s
key global functions will continue to be headquartered in
Allschwil, Switzerland. The company is committed to minimizing the
number of potential redundancies through natural attrition,
retirements, and other such measures. A consultation process with
employee representatives at headquarters has been initiated. Upon
completion of the consultation process, Idorsia intends to conclude
the initiative before the end of 2023 with the reduction of costs
becoming fully effective early in 2024.
Jean-Paul Clozel, Chief
Executive Officer of Idorsia,
commented:“I continue to believe that QUVIVIQ can be the
success we hope for, but unfortunately it will take longer than
originally planned. Idorsia’s immediate objective is therefore to
maximize the time the company has to deliver commercial success
with its products. This means making any funds that are raised last
as long as possible by significantly reducing our global cash-burn.
The cost reduction initiative together with potential
collaborations will give the company the time it needs to realize
the value we have created. I deeply regret having to launch such an
initiative, but we simply cannot sustain current investment
levels.”
The company will provide a business update at the half year
reporting, scheduled for Tuesday July 25, 2023.
Notes to the editor
About IdorsiaIdorsia Ltd is reaching out for
more – We have more ideas, we see more opportunities and we want to
help more patients. In order to achieve this, we will develop
Idorsia into a leading biopharmaceutical company, with a strong
scientific core.
Headquartered near Basel, Switzerland – a European biotech-hub –
Idorsia is specialized in the discovery, development and
commercialization of small molecules to transform the horizon of
therapeutic options. Idorsia has a 20-year heritage of drug
discovery, a broad portfolio of innovative drugs in the pipeline,
an experienced team of professionals covering all disciplines from
bench to bedside, and commercial operations in Europe and North
America – the ideal constellation for bringing innovative medicines
to patients.
Idorsia was listed on the SIX Swiss Exchange (ticker symbol:
IDIA) in June 2017 and has over 1,200 highly qualified specialists
dedicated to realizing our ambitious targets.
For further information, please
contactAndrew C. WeissSenior Vice President, Head
of Investor Relations & Corporate CommunicationsIdorsia
Pharmaceuticals Ltd, Hegenheimermattweg 91, CH-4123 Allschwil+41 58
844 10 10investor.relations@idorsia.com •
media.relations@idorsia.com • www.idorsia.com
The above information contains certain "forward-looking
statements", relating to the company's business, which can be
identified by the use of forward-looking terminology such as
"estimates", "believes", "expects", "may", "are expected to",
"will", "will continue", "should", "would be", "seeks", "pending"
or "anticipates" or similar expressions, or by discussions of
strategy, plans or intentions. Such statements include descriptions
of the company's investment and research and development programs
and anticipated expenditures in connection therewith, descriptions
of new products expected to be introduced by the company and
anticipated customer demand for such products and products in the
company's existing portfolio. Such statements reflect the current
views of the company with respect to future events and are subject
to certain risks, uncertainties and assumptions. Many factors could
cause the actual results, performance or achievements of the
company to be materially different from any future results,
performances or achievements that may be expressed or implied by
such forward-looking statements. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described herein as anticipated, believed, estimated or
expected.
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