Key Updates

Business highlights

  • PIVLAZ™ (clazosentan) for the prevention of cerebral vasospasm, vasospasm-related cerebral infarction and cerebral ischemic symptoms after aneurysmal subarachnoid hemorrhage launched in Japan on April 20, 2022

  • US launch of QUVIVIQ™ (daridorexant) for the treatment of adult patients with insomnia on May 2, 2022

  • EC decision for QUVIVIQ expected in early May 2022 – CHMP adopted a positive opinion in February 2022

  • PRECISION, a Phase 3 study to demonstrate the antihypertensive effect of aprocitentan when added to standard of care in patients with resistant hypertension, on track to deliver results before mid-2022

Financial highlights

  • US GAAP operating expenses in Q1 2022 at CHF 198 million

  • Non-GAAP operating expenses in Q1 2022 at CHF 188 million

  • Guidance for 2022 (unchanged): Net revenue around CHF 145 million – US GAAP operating expenses around CHF 975 million and non-GAAP operating expenses around CHF 920 million – leading to US GAAP operating loss of around CHF 840 million and non-GAAP operating loss of around CHF 785 million – unforeseen events excluded

Financial Results as of March 31, 2022

US GAAP results

 

First Quarter

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

2022

2021

Revenues

5

7

Operating expenses

(198)

(129)

Operating income (loss)

(193)

(122)

Net income (loss)

(198)

(105)

Basic EPS

(1.12)

(0.63)

Basic weighted average number of shares

177.1

166.6

Diluted EPS

(1.12)

(0.63)

Diluted weighted average number of shares

177.1

166.6

 

US GAAP revenue of CHF 5 million in the first quarter of 2022 consisted of contract revenue recognized in connection with the collaboration agreements with Janssen Biotech, Inc. (CHF 3 million), Mochida Pharmaceutical Co., Ltd (CHF 1 million) and Neurocrine Biosciences, Inc. (CHF 1 million) and revenue share from J&J (CHF 0.2 million), compared to a revenue of CHF 7 million in the first quarter of 2021.

US GAAP operating expenses in the first quarter of 2022 amounted to CHF 198 million (CHF 129 million in the first quarter of 2021), of which CHF 95 million relates to R&D (CHF 97 million in the first quarter of 2021) and CHF 103 million to SG&A expenses (CHF 31 million in the first quarter of 2021).

US GAAP net loss in the first quarter of 2022 amounted to CHF 198 million compared to CHF 105 million in the first quarter of 2021. The increase of the net loss was mainly driven by higher operating expenses, mainly in the commercial functions and a negative financial result.

The US GAAP net loss resulted in a net loss per share of CHF 1.12 (basic and diluted) in the first quarter of 2022 compared to a net loss per share of CHF 0.63 (basic and diluted) in the first quarter of 2021.

Non-GAAP* measures

 

First Quarter

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

2022

2021

Revenues

5

7

Operating expenses

(188)

(121)

Operating income (loss)

(183)

(114)

Net income (loss)

(189)

(95)

Basic EPS

(1.07)

(0.57)

Basic weighted average number of shares

177.1

166.6

Diluted EPS

(1.07)

(0.57)

Diluted weighted average number of shares

177.1

166.6

* 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 2022 amounted to CHF 189 million: the CHF 9 million difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 5 million), share-based compensation (CHF 5 million) and a positive non-cash financial result (CHF 1 million).

The non-GAAP net loss resulted in a net loss per share of CHF 1.07 (basic and diluted) in the first quarter of 2022 compared to a net loss per share of CHF 0.57 (basic and diluted) in the first quarter of 2021.

Financial outlook

“The launch of our first products is transforming the company into a commercial entity. I am happy that the first quarter of 2022 is the last quarter without sales figures, and I am really looking forward to seeing the initial uptake of our products and the corresponding results at the half-year reporting. No matter how well we guide the market, the proof of the pudding is in the eating. I am confident that we can deliver on our ambitious targets and that will put sustainable profitability within reach in the not-too-distant future. For 2022, I continue to anticipate net revenue around CHF 145 million, US GAAP operating expenses around CHF 975 million and non-GAAP operating expenses around CHF 920 million, all leading to a US GAAP operating loss of around CHF 840 million and a non-GAAP operating loss of around CHF 785 million, unforeseen events excluded.” (April 2022)

André C. Muller
Chief Financial Officer

Financial charts

Financial charts for the first quarter of 2022 are presented in the company presentation.