Key Updates

  • US GAAP operating expenses HY 2019 at CHF 252 million
  • Non-GAAP operating expenses HY 2019 at CHF 234 million

Financial Results as of June 30, 2019

US GAAP results

 

First Half

Second Quarter

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

2019

2018

2019

2018

Revenues

13

13

7

7

Operating expenses

(252)

(168)

(127)

(87)

Operating income (loss)

(239) (155) (121) (81)

Net income (loss)

(232) (159) (126) (80)

Basic EPS

(1.77) (1.34) (0.96) (0.68)

Basic weighted average number of shares

131.1 119.1 131.2 119.1

Diluted EPS

(1.77) (1.34) (0.96) (0.68)

Diluted weighted average number of shares

131.1 119.1 131.2 119.1

 

US GAAP net loss in the first half of 2019 amounted to CHF 232 million compared to CHF 159 million for the first half of 2018. The increase of the net loss was mainly driven by higher operating costs.

US GAAP revenue of CHF 13 million in the first half of 2019 as well as 2018 related to deferred contract revenue recognized in connection to the collaboration agreements with Janssen (CHF 10.6 million) and Roche (CHF 2.5 million).

US GAAP operating expenses in the first half of 2019 amounted to CHF 252 million (of which CHF 220 million R&D and CHF 33 million SG&A expenses), whilst operating expenses in the first half of 2018 amounted to CHF 168 million (of which CHF 139 million R&D and CHF 29 million SG&A expenses).

The US GAAP net loss resulted in a net loss per share of CHF 1.77 (basic and diluted) for the first half of 2019 compared to a net loss per share of CHF 1.34 (basic and diluted) for the first half of 2018.

Non-GAAP* measures

 

First Half

Second Quarter

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

2019

2018

2019

2018

Revenues

13 13 7 7

Operating expenses

(234) (153) (118) (79)

Operating income (loss)

(221) (139) (111) (73)

Net income (loss)

(222) (139) (115) (71)

Basic EPS

(1.69) (1.17) (0.87) (0.59)

Basic weighted average number of shares

131.1 119.1 131.2 119.1

Diluted EPS

(1.69) (1.17) (0.87) (0.59)

Diluted weighted average number of shares

131.1 119.1 131.2 119.1

* 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 the first half of 2019 amounted to CHF 222 million: the difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 10 million), share-based compensation (CHF 8 million), and positive non-cash financial result (CHF 8 million).

The non-GAAP net loss resulted in a net loss per share of CHF 1.69 (basic and diluted) for the first half of 2019 compared to a net loss per share of CHF 1.17 (basic and diluted) for the first half of 2018.

Financial Guidance

“In the first six months of 2019, we fully focused on recruiting patients for our late-stage clinical trials, the main cost driver this year, and shaping our commercial strategy. As expenses are in line with expectations, the financial guidance for 2019 remains unchanged. Excluding unforeseen events and potential milestone payments, we expect non-GAAP operating expenses for 2019 to be around CHF 530 million.”

André C. Muller
Chief Financial Officer

Financial Charts - Half Year

Financial charts for the first half of 2019 are presented in the latest webcast presentation.