Key Updates

Business updates

  • Janssen submitted New Drug Application to the U.S. FDA and European Marketing Authorization Application for ponesimod for treatment of adults with relapsing multiple sclerosis – Idorsia has a revenue-sharing agreement in respect to ponesimod
  • Positive results in the first Phase 3 study of daridorexant with improved overall sleep and daytime performance of patients with insomnia

Financial updates

  • US GAAP operating expenses in Q1 2020 at CHF 116 million
  • Non-GAAP operating expenses in Q1 2020 at CHF 106 million
  • Updated guidance for 2020: US GAAP operating expenses below CHF 540 million and non-GAAP operating expenses below CHF 500 million (both measures exclude any potential milestone payments)

Financial Results as of March 31, 2020

US GAAP results

 

First Quarter

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

2020

2019

Revenues

5

7

Operating expenses

(116)

(125)

Operating income (loss)

(111)

(119)

Net income (loss)

(120)

(106)

Basic EPS

(0.91)

(0.81)

Basic weighted average number of shares

131.3

131.1

Diluted EPS

(0.91)

(0.81)

Diluted weighted average number of shares

131.3

131.1

 

US GAAP revenue of CHF 5 million in the first quarter of 2020 related to deferred contract revenue recognized in connection to the collaboration agreements with Janssen (CHF 3 million), Roche (CHF 1 million) and Mochida (CHF 1 million), compared to a revenue of CHF 7 million in the first quarter of 2019.

US GAAP operating expenses in the first quarter of 2020 amounted to CHF 116 million (of which CHF 97 million R&D and CHF 19 million SG&A expenses), whilst operating expenses in the first quarter of 2019 amounted to CHF 125 million (of which CHF 110 million R&D and CHF 16 million SG&A expenses).

US GAAP net loss in the first quarter of 2020 amounted to CHF 120 million compared to CHF 106 million in the first quarter of 2019. The increase of the net loss was mainly driven by financial expenses and partially offset by lower operating costs.

The US GAAP net loss resulted in a net loss per share of CHF 0.91 (basic and diluted) in the first quarter of 2020 compared to a net loss per share of CHF 0.81 (basic and diluted) in the first quarter of 2019.

Non-GAAP* measures

 

First Quarter

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

2020

2019

Revenues

5

7

Operating expenses

(106)

(117)

Operating income (loss)

(101)

(110)

Net income (loss)

(102)

(108)

Basic EPS

(0.78)

(0.82)

Basic weighted average number of shares

131.3

131.1

Diluted EPS

(0.78)

(0.82)

Diluted weighted average number of shares

131.3

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 the first quarter of 2020 amounted to CHF 102 million: the CHF 18 million difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 5 million), share-based compensation (CHF 6 million) and a negative non-cash financial result (CHF 7 million).

The non-GAAP net loss resulted in a net loss per share of CHF 0.78 (basic and diluted) in the first quarter of 2020 compared to a net loss per share of CHF 0.82 (basic and diluted) in the first quarter of 2019.

Financial Guidance

“Our operating expense in the first quarter was lower than planned, primarily due to the extraordinary circumstances caused by COVID-19. We currently anticipate a lower spend for the full-year 2020 thus resulting in an updated guidance of US GAAP operating expenses below 540 million Swiss francs and non-GAAP operating expenses below 500 million Swiss francs. How much less will mainly depend on the impact of COVID-19 on ongoing clinical trials, which we hope to have more visibility on by the end of the second quarter – of course this excludes unforeseen events and potential milestone payments. I will reiterate that 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 additional 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 the first quarter of 2020 are presented in the company presentation.