Idorsia under pressure: Financial woes and stock gains in focus!

Idorsia under pressure: Financial woes and stock gains in focus!

The Idorsia share is showing positive development today, May 15, 2025. At 9:28 a.m., the price in SIX SX trading increased by 1.2 percent to CHF 1.32, making it one of the more successful stocks in the Swiss Performance Index (SPI), which currently stands at 16,595 points. So far, 14,000 Idorsia shares have been traded in today's trading.

The Idorsia share price reached a 52-week high of CHF 2.98 on July 30, 2024, which is 125.76 percent above the current level. In contrast, the price fell to a low of CHF 0.61 on November 19, 2024, which is the lowest level in the past 52 weeks. The stock is currently trading 115.86 percent above this 52-week low.

Financial challenges and future prospects

Despite today's share price gain, Idorsia faces serious financial challenges. How wallstreet-online.de reports, the company will soon have to service a convertible bond of CHF 200 million. Management plans to postpone the repayment of the bond and is holding discussions with the bondholders.

A possible licensing deal for the antihypertensive drug Aprocitentan could contribute to the repayment. However, time is of the essence, as a deal was originally expected by the end of 2023, but this is now considered unrealistic. Analysts warn that time is running out for a deal that provides much-needed funding.

Sales development and future plans

The latest financial results, published on April 30, 2025, show a negative development: sales fell by 26.33 percent to CHF 58.88 million, compared to CHF 79.92 million in the previous year. Earnings per share were CHF 0.33, which represents a decrease of CHF 1.26 compared to the previous year. For 2023, analysts are forecasting a dividend of CHF 0.000, which was also CHF 0.000 per share in the previous year.

The company's liquid assets are depleted, save for a $35 million exclusivity fee from an interested party. The sleep aid Quviviq has not yet generated any significant sales, and the company only has very early development candidates. Even with a successful deal for Aprocitentan, the financial prospects remain limited until mid-2025.

Idorsia plans to raise at least CHF 200 million in fresh capital to bridge the gap to 2026. From a deal with Aprocitentan, 30 percent of the proceeds would flow to Johnson & Johnson, which sold back the rights to the active ingredient in 2023. The company also has another convertible bond for CHF 600 million, which matures in 2028, but could be repaid as early as 2026 if the bondholders wish. The company's future depends heavily on sales of the sleep aid Quviviq, which has so far generated low revenue.

Q2 2025 financial results are expected to be presented on July 30, 2025, while Q2 2026 results are estimated to be presented on July 28, 2026.