Key Updates

  •  US GAAP operating expenses 2019 at CHF 506 million
  • Non-GAAP operating expenses 2019 at CHF 470 million

Financial Results as of December 31, 2019

US GAAP results

 

Full Year

Fourth Quarter

in CHF millions, except EPS (CHF) and number of shares (millions)

2019

2018

2019

2018

Revenues

24

61

4

41

Operating expenses

(506)

(432)

(131)

(141)

Operating income (loss)

(482) (371) (127) (101)

Net income (loss)

(494) (386) (142) (108)

Basic EPS

(3.76) (3.10) (1.08) (0.83)

Basic weighted average number of shares

131.2 124.8 131.2 131.1

Diluted EPS

(3.76) (3.10) (1.08) (0.83)

Diluted weighted average number of shares

131.2 124.8 131.2 131.1

 

US GAAP revenue of CHF 24 million in 2019 related to deferred contract revenue recognized in connection to the collaboration agreements with Janssen (CHF 19 million) and Roche (CHF 5 million), compared to a revenue of CHF 61 million in 2018.

US GAAP operating expenses in 2019 amounted to CHF 506 million (of which CHF 439 million R&D and CHF 68 million SG&A expenses), whilst operating expenses in 2018 amounted to CHF 432 million (of which CHF 370 million R&D and CHF 61 million SG&A expenses).

US GAAP net loss in 2019 amounted to CHF 494 million compared to CHF 386 million in 2018. The increase of the net loss was mainly driven by higher operating costs.

The US GAAP net loss resulted in a net loss per share of CHF 3.76 (basic and diluted) in 2019 compared to a net loss per share of CHF 3.10 (basic and diluted) in 2018.

Non-GAAP* measures

 

Full Year

Fourth Quarter

in CHF millions, except EPS (CHF) and number of shares (millions)

2019

2018

2019

2018

Revenues

24 61 4 41

Operating expenses

(470) (399) (122) (133)

Operating income (loss)

(446) (339) (118) (92)

Net income (loss)

(448) (340) (121) (91)

Basic EPS

(3.41) (2.72) (0.92) (0.70)

Basic weighted average number of shares

131.2 124.8 131.2 131.1

Diluted EPS

(3.41) (2.72) (0.92) (0.70)

Diluted weighted average number of shares

131.2 124.8 131.2 131.1

* Idorsia measures, reports and issues guidance on non-GAAP operating performance. Idorsia believes that these non-GAAP financial measurements more accurately reflect the underlying business performance and therefore provide useful supplementary information to investors. These non-GAAP measures are reported in addition to, not as a substitute for, US GAAP financial performance.

Non-GAAP net loss in 2019 amounted to CHF 448 million: the CHF 46 million difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 20 million), share-based compensation (CHF 17 million), a negative non-cash financial result (CHF 2 million), and a negative non-cash tax result (CHF 8 million).

The non-GAAP net loss resulted in a net loss per share of CHF 3.41 (basic and diluted) in 2019 compared to a net loss per share of CHF 2.72 (basic and diluted) in 2018.

Financial Guidance

“With a cost-conscious attitude and a slight shift in timelines for some clinical programs, we spent less in 2019 than originally expected, ending the year with liquidity of CHF 739 million. For 2020, we expect non-GAAP operating expenses to be around CHF 500 million, excluding unforeseen events and potential milestone payments. Idorsia's liquidity will not last until break-even, thus we will need additional funding to bring our products to market, but we are fortunate in having several unencumbered assets in clinical development with key results in the near future, as well as financing options available to us.”

André C. Muller
Chief Financial Officer

Financial Charts

Financial charts for 2019 are presented in the webcast presentation.