Idorsia Restructures Deals Amid Setbacks, Secures Additional Funding

Tryvio Licensing Efforts Fall Through

Idorsia, the Swiss biopharmaceutical company, has faced a significant setback in its efforts to license Tryvio (aprocitentan), its dual endothelin receptor antagonist for systemic hypertension. The company disclosed that an exclusivity agreement with an undisclosed party, signed in November, has elapsed without resulting in a deal. This development leaves Idorsia with only the $35 million exclusivity fee received in December.

CEO André Muller expressed disappointment but remained optimistic about Tryvio's potential, stating, "We need to move on, and we will resume discussions with other potential partners that recognize the blockbuster potential of aprocitentan in uncontrolled hypertension, particularly for the difficult-to-treat patients with chronic kidney disease and hypertension."

This setback follows Johnson & Johnson's decision to return Tryvio to Idorsia in 2023, despite a phase 3 win, due to concerns about mild to moderate fluid retention in 18% of patients on the high dose.

Viatris Deal Restructured, Development Costs Reduced

In response to these challenges, Idorsia has moved to restructure its deal with Viatris for two phase 3-stage drugs, selatogrel and cenerimod. The updated terms will see Idorsia's contribution to development costs reduced from $200 million to $100 million. The company has already paid $73 million, with the remaining $27 million to be paid in four quarterly installments in 2026.

This restructuring comes at a cost, as Idorsia's eligibility for milestone payments will be reduced by $250 million. The original deal, signed a year ago, included an upfront fee of $350 million from Viatris for the global rights to selatogrel, a P2Y12 inhibitor for improving outcomes in patients who suffer a second heart attack, and cenerimod, an S1P1 receptor modulator for systemic lupus erythematosus.

Financial Maneuvers to Secure Operations

In addition to restructuring its deals, Idorsia has taken steps to shore up its financial position. The company announced it has raised 150 million Swiss francs ($167 million) by restructuring its outstanding convertible bond debt. This additional funding is intended to "secure future operations," according to the company's statement.

These financial maneuvers come at a crucial time for Idorsia, which has a history of needing to find cash quickly to support its operations and drug development efforts.