Vision of Idorsia
The vision of Idorsia is to become one of Europe’s most innovative biopharmaceutical companies with capabilities ranging from research to commercial operations.
Who is Idorsia?
Idorsia is an independent biopharmaceutical company specialized in the discovery and development of small molecule therapeutics to meet significant unmet medical needs. Idorsia has a diverse clinical development pipeline comprising several compounds being investigated in multiple therapeutic areas, including central nervous system disorders, cardiovascular disorders, immunological disorders and orphan diseases.
Idorsia directly benefits from Actelion’s 19-year history and experience, inheriting Actelion’s established and validated drug discovery engine and a strong cross-section of its development organization. Idorsia’s pipeline will be developed by its own development organization.
Headquartered in Allschwil, Switzerland, Idorsia was incorporated on 2 March 2017. Idorsia was launched on 16 June 2017 with over 600 employees.
What are Idorsia’s key strengths that differentiate it from competitors?
Idorsia’s key strengths lie in the unique combination of:
- Skills: An experienced team, with a proven track record of successfully bringing drug candidates to market
- Products: Ownership of a clinical pipeline of drug candidates in different areas of medicine where patients’ needs are not fully met with existing therapies
- Assets: State-of-the-art facilities
- Cash: Financing with CHF 1 billion in cash at inception
What is the strategy for creating sustainable value?
The strategy of Idorsia is to harness its unique strengths by skillfully investing in its pipeline, following a structured approach to capital management as well as creating a sustainable revenue-generating organization.
How do we bring the strategy to life?
Five key priorities – delivering value over next five years
Idorsia has identified five key priorities to ensure the successful execution of its strategy over the next five years:
Focusing on key pipeline compounds
Idorsia has a diversified clinical development pipeline in multiple therapeutic areas and aims to bring these products to market with the potential to significantly change the treatment options in their target disease.
Building a commercial organization to bring drugs from bench-to-bedside
In order to bring pioneering therapies to as many patients as possible and address important healthcare challenges, Idorsia aims to establish a commercial organization to maximize the value of its innovations. It will consider partnerships in areas where only a large commercial infrastructure can be successful and, where appropriate, build its own commercial infrastructure to market its drugs in certain therapeutic fields.
Idorsia’s highly qualified specialists aim to rapidly advance its development pipeline and commercial readiness to achieve profitability, assuming its pipeline candidates receive regulatory approval for commercialization. Until then, Idorsia expects to generate revenue from Actelion, together with J&J, through potential milestone and royalty payments in connection with the development and commercialization of aprocitentan (ACT-132577), and potential revenue-sharing payments in connection with sales of ponesimod and cadazolid.
Fueling sustainable growth from the pipeline
Idorsia’s drug discovery focuses on creating small molecule compounds that are active on families of molecular targets. For each of these new compounds it tries to identify the most relevant medical indication, with a strong focus on disorders with high unmet medical need. At all times, it is science that drives the discovery process as it singles out "druggable" targets across different diseases and thus leverages the clinical benefit for the patient.
Idorsia aims to increasingly implement state-of-the-art technologies across the value chain and will look for creative ways to utilize advances in technology to focus on “druggable” targets, genetics and personalized medicine as well as the use of new drug development methodologies, such as adaptive design. As Idorsia establishes its commercial infrastructure, it will look for opportunities to use technology to reach more patients and ensure they can maximize the use of their therapies.
Idorsia’s ongoing relationships with J&J
J&J share ownership in Idorsia by way of the Convertible Loan and credit facility
As of the First Day of Trading, Idorsia was funded in an amount of CHF 1 billion in cash. Of the CHF 1 billion in cash available to Idorsia, CHF 420 million represents an equity contribution from Actelion made as part of the Reorganization with the remaining CHF 580 million representing proceeds from the Convertible Loan. In addition, as of the First Day of Trading, Idorsia has the CHF equivalent of USD 250 million available under the Credit Facility.
Collaboration between Janssen Biotech and Idorsia in respect of aprocitentan
Janssen Biotech and Idorsia have entered into a collaboration agreement giving Janssen Biotech the option to collaborate with Idorsia to jointly develop, and to solely commercialize, aprocitentan and any of its derivative compounds or products worldwide, for all indications other than pulmonary hypertension. The Collaboration Agreement also grants Janssen Biotech the perpetual and exclusive right to develop and commercialize the Licensed Compounds and Licensed Products worldwide for pulmonary hypertension. Janssen Biotech may not, however, develop or commercialize the Licensed Compounds and Licensed Products for such purposes without Idorsia’s consent.
Revenue Sharing Agreement with J&J
Idorsia and J&J have entered into a revenue sharing agreement in respect of ponesimod and cadazolid. Under the terms of the Revenue Sharing Agreement, if market authorization is obtained, Idorsia Pharmaceuticals Ltd is entitled to receive from Actelion Pharmaceuticals Ltd quarterly payments of 8% of the aggregate net sales of ponesimod and cadazolid products.
Idorsia’s ongoing relationship with Reveragen and Vaxxilon
Idorsia has an agreement with ReveraGen that may require future royalty and milestone payments contingent upon the achievement of certain development, regulatory or commercial milestones.
In addition, Vaxxilon has licensed exclusive rights to multiple preclinical vaccine candidates and additional technologies from Max-Planck Innovation GmbH, Munich, Germany, the technology transfer office of the Max Planck Society, which will require future payments contingent upon the achievement of certain development, regulatory, or commercial milestones.
For these agreements, and similar ones that Idorsia may enter into in the future, it is not possible to predict with reasonable certainty whether these milestones will be achieved or the timing for achievement.