With biotech companies, there is almost always a fine line between success and failure. In this respect, domestic Idorsia is no exception. The company has suffered research setbacks with two potential candidates in the past two years. On the other hand, 2022 also marked a turning point for the company. The company, which was only founded in 2017, launched its first two drugs. These were "Pivlaz" for the treatment of patients with brain hemorrhages and the sleeping pill "Quviviq". "Quviviq is well on its way to becoming the world's leading brand in insomnia", Jean-Paul Clozel expressed confidence at the J.P. Morgan Healthcare Conference earlier this year.
The Allschwil-based biotech start-up is not resting on its laurels. On the contrary: shortly before the end of 2022, the company, which has more than 1,200 employees, submitted an application for approval of "Aprocitentan" in the USA. This is an active ingredient used to treat high blood pressure that is difficult to control. Idorsia developed the drug together with a subsidiary of Johnson & Johnson, which also holds the sole marketing rights. Of course, Idorsia does not go away empty-handed: Depending on the revenues generated, royalties of between 20 and 35 percent flow into the canton of Basel-Landschaft. CEO Clozel expects the FDA's decision before the end of the year and is also targeting applications for approval in other countries in the coming months.
The potential of the two drugs already approved is also far from exhausted. The market launch of the insomnia active ingredient Quviviq is planned for mid-year in Switzerland and the UK. In Japan, the insomnia drug is still in Phase III, but NDA approval is expected in the second half of the year. Based on the hoped-for success of the drug duo Quviviq and Pivlaz, Idorsia expects to reach profitability in 2025. By then, the company aims to generate sales of more than CHF 1 billion. Overall, Idorsia even aims to create a drug pipeline with revenue potential of at least CHF 5 billion.
One step closer to this goal could bring the biotech forge the active ingredient "Cenerimod" against the rare autoimmune disease Systemic Lupus Erythematosus (SLE). The Phase III program to investigate efficacy and safety recently started. The study is classified by the U.S. Food and Drug Administration (FDA) as a "fast-track" program, which should facilitate the development and accelerate the testing of this therapy. In addition, another promising candidate, "Selatogrel" for the treatment of acute myocardial infarction, is in Phase III, while Idorsia's remaining five drug candidates are currently in Phase I and II clinical trials. A decision on the future of the initially failed drug "Lucerastat" for the treatment of the metabolic disorder Fabry disease is also expected to be made this year.
Idorsia shares plummeted in the first half of last year. The low point was marked in July 2022 at CHF 10.83. Subsequently, the second-tier stock formed a bottom, which was used for a dynamic comeback. Most recently, the share even managed to cross the 100- and 200-day moving average. Measured against the low, the Idorsia share price has meanwhile climbed by about 60 percent, which means that the recovery phase should gradually come to an end for the majority of analysts. The average recommendation of twelve research studies is "hold" with a 12-month price target of CHF 15.40. The share is currently trading at around this level.
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