Key Updates

  • US GAAP operating expenses 9M 2019 at CHF 375 million
  • Non-GAAP operating expenses 9M 2019 at CHF 347 million

Financial Results as of September 30, 2019

US GAAP results

 

Nine Months

Third Quarter

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

2019

2018

2019

2018

Revenues

20

20

7

7

Operating expenses

(375)

(290)

(123)

(122)

Operating income (loss)

(355) (271) (116) (115)

Net income (loss)

(352) (278) (120) (119)

Basic EPS

(2.68) (2.27) (0.91) (0.92)

Basic weighted average number of shares

131.2 122.7 131.2 129.6

Diluted EPS

(2.68) (2.27) (0.91) (0.92)

Diluted weighted average number of shares

131.2 122.7 131.2 129.6

 

US GAAP revenue of CHF 20 million in the first nine months of 2019 as well as 2018 related to deferred contract revenue recognized in connection to the collaboration agreements with Janssen (CHF 15.9 million) and Roche (CHF 3.8 million).

US GAAP operating expenses in the first nine months of 2019 amounted to CHF 375 million (of which CHF 327 million R&D and CHF 48 million SG&A expenses), whilst operating expenses in the first nine months of 2018 amounted to CHF 290 million (of which CHF 245 million R&D and CHF 45 million SG&A expenses).

US GAAP net loss in the first nine months of 2019 amounted to CHF 352 million compared to CHF 278 million for the first nine months of 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 2.68 (basic and diluted) for the first nine months of 2019 compared to a net loss per share of CHF 2.27 (basic and diluted) for the first nine months of 2018.

Non-GAAP* measures

 

Nine Months

Third Quarter

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

2019

2018

2019

2018

Revenues

20 20 7 7

Operating expenses

(347) (266) (113) (114)

Operating income (loss)

(328) (247) (107) (107)

Net income (loss)

(326) (249) (104) (109)

Basic EPS

(2.49) (2.03) (0.79) (0.84)

Basic weighted average number of shares

131.2 122.7 131.2 129.6

Diluted EPS

(2.49) (2.03) (0.79) (0.84)

Diluted weighted average number of shares

131.2 122.7 131.2 129.6

* 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 nine months of 2019 amounted to CHF 326 million: the difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 15 million), share-based compensation (CHF 13 million), and positive non-cash financial result (CHF 3 million).

The non-GAAP net loss resulted in a net loss per share of CHF 2.49 (basic and diluted) for the first nine months of 2019 compared to a net loss per share of CHF 2.03 (basic and diluted) for the first nine months of 2018.

Financial Guidance

“In the first nine months of 2019 expenses were below our initial expectations, the result of lower clinical spend reflecting a slightly lower recruitment into some programs, but also a cost-conscious attitude from all our team. As a result, we are updating our financial guidance for 2019, now unforeseen events and potential milestone payments excluded, we expect non-GAAP operating expenses for 2019 not to exceed CHF 500 million.”

André C. Muller
Chief Financial Officer

Financial Charts

Financial charts for the first nine months of 2019 are presented in the company presentation.