Key Updates

Business updates

  • Positive results in both pivotal Phase 3 studies of daridorexant with improved overall sleep and daytime functioning of patients with insomnia
  • Neurocrine Biosciences exercised option to license Idorsia's novel treatment for rare pediatric epilepsy
  • Establishment of Idorsia Pharmaceuticals US Inc. commercial operations and leadership team
  • Merger of Vaxxilon Ltd – Idorsia discovers and develops synthetic carbohydrate vaccines to prevent infection
  • Janssen submitted New Drug Application to the US 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

Financial updates

  • Issuance of 11 million new shares receiving gross proceeds of CHF 330 million
  • US GAAP operating expenses HY 2020 at CHF 236 million
  • Non-GAAP operating expenses HY 2020 at CHF 193 million
  • Updated guidance for 2020: US GAAP operating expenses around CHF 530 million and non-GAAP operating expenses around CHF 490 million (both measures exclude unforeseen events, potential milestone payments and any potential award granted in the ongoing arbitration)

Financial Results as of June 30, 2020

US GAAP results

 

First Half

Second Quarter

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

2020

2019

2020

2019

Revenues

58

13

53

7

Operating expenses

(236)

(252)

(120)

(127)

Operating income (loss)

(178)

(239)

(67)

(121)

Net income (loss)

(189)

(232)

(69)

(126)

Basic EPS

(1.41)

(1.77)

(0.51)

(0.96)

Basic weighted average number of shares

133.8

131.1

136.4

131.2

Diluted EPS

(1.41)

(1.77)

(0.51)

(0.96)

Diluted weighted average number of shares

133.8

131.1

136.4

131.2

 

US GAAP revenue of CHF 58 million in the first half of 2020 consisted of contract revenue recognized in connection with the collaboration agreements with Neurocrine Biosciences, Inc. (CHF 48 million), Janssen Biotech, Inc. (CHF 6 million), Roche (CHF 3 million) and Mochida Pharmaceutical Co., Ltd (CHF 2 million), compared to a revenue of CHF 13 million in the first half of 2019.

US GAAP operating expenses in the first half of 2020 amounted to CHF 236 million (CHF 252 million in HY 2019), of which CHF 197 million relates to R&D (CHF 220 million in HY 2019), which includes a one-off expense of CHF 32 million as explained in the legal update below and CHF 40 million to SG&A expenses (CHF 33 million in HY 2019).

US GAAP net loss in the first half of 2020 amounted to CHF 189 million compared to CHF 232 million in the first half of 2019. The decrease of the net loss was mainly driven by higher contract revenues and lower operating expenses.

The US GAAP net loss resulted in a net loss per share of CHF 1.41 (basic and diluted) in the first half of 2020 compared to a net loss per share of CHF 1.77 (basic and diluted) in the first half of 2019.

Non-GAAP* measures

 

First Half

Second Quarter

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

2020

2019

2020

2019

Revenues

58

13

53

7

Operating expenses

(193)

(234)

(86)

(118)

Operating income (loss)

(134)

(221)

(33)

(111)

Net income (loss)

(138)

(222)

(36)

(115)

Basic EPS

(1.03)

(1.69)

(0.26)

(0.87)

Basic weighted average number of shares

133.8

131.1

136.4

131.2

Diluted EPS

(1.03)

(1.69)

(0.26)

(0.87)

Diluted weighted average number of shares

133.8

131.1

136.4

131.2

* 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 2020 amounted to CHF 138 million: the CHF 51 million difference versus US GAAP net loss was mainly due to depreciation and amortization (CHF 9 million), share-based compensation (CHF 13 million), an accrual in relation to the arbitration (CHF 24 million) and a negative non-cash financial result (CHF 6 million).

The non-GAAP net loss resulted in a net loss per share of CHF 1.03 (basic and diluted) in the first half of 2020 compared to a net loss per share of CHF 1.69 (basic and diluted) in the first half of 2019.

Financial Guidance

“We currently anticipate non-GAAP operating expenses of 490 million Swiss francs – excluding unforeseen events, potential milestone payments and any payments related to the ongoing arbitration. The lower spend is mainly caused by COVID-19 that impacted the recruitment pace in our late-stage pipeline studies; the good news is that no studies have been stopped. On the back of the first pivotal trial of daridorexant and the collaboration with Neurocrine, the company raised 323 million Swiss francs in an offering of 11 million new shares, narrowing the liquidity gap.”

André C. Muller
Chief Financial Officer

Financial Charts

Financial charts for the first half of 2020 are presented in the webcast presentation.