ZURICH (Reuters) -Idorsia plans to restructure its debt, implement cost-cutting measures and could shed up to 270 jobs in a bid to spur profitability, the Swiss pharma company said on Wednesday.
Idorsia, which posted a net loss of 180 million Swiss francs ($203 million) for the first nine months of 2024, said it aims to conclude the restructuring by the end of the year, with the cost reductions fully effective by the second quarter of 2025.
The shake-up plan includes steps to restructure the company’s outstanding debt, CEO Andre Muller said.
“I am confident that our plan is achievable within the next few months, and that will allow us to shift our focus back to our products,” he said.
To reach sustainable profitability, the company said it must focus efforts, reducing the number of active projects in research and development and preparing some for out-licensing.
To this end, it plans to cut staffing levels and said that depending on the outcome of a consultation process, about 270 positions globally could become redundant, mainly in research and development and support functions at headquarters.
According to its website, the company has over 750 employees.
Idorsia also said it had entered into negotiations with an undisclosed party over the global rights to its medication aprocitentan, which is used to treat high blood pressure.
Idorsia will receive an exclusivity fee of $35 million, the firm said.
($1 = 0.8854 Swiss francs)
(Writing by Dave Graham; editing by Miranda Murray and Jason Neely)
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