Earlier this week, Idorsia revealed a cost reduction initiative aimed at minimizing expenses at the company's headquarters by approximately 50%, mainly through company layoffs.
As part of its plan, Idorsia will be implementing series of cuts that will affect approximately 475 positions at its headquarters in Allschwil, Switzerland. These reductions are a combination of canceling open positions, not replacing outgoing employees, and terminating up to 300 positions primarily within the R&D and related support functions.
This strategic cost-saving move is a response to the changing business landscape and follows the company's recent transaction with Sosei Heptares, where Idorsia sold its Asia Pacific (excluding China) operations, including selected license rights to products, for a total consideration of approximately $447 million. The cost reduction initiative aims to conclude by the end of 2023, with efforts becoming fully effective early in 2024.
Just last month, Idorsia entered into an agreement with J&J's Janssen Biotech for the return of rights for aprocitentan, a dual endothelin receptor antagonist currently under review with health authorities for the treatment of patients with resistant hypertension. Per the deal, Swiss biotech Idorsia — which was spun out of Actelion as part of J&J's $30 billion acquisition in 2017 — will pay up to $343.9 million. Idorsia filed a New Drug Application with the FDA in December 2022, and the drug has a PDUFA date of December 19, 2023.