Stock market soar of Idorsia: a thrilling yet perilous climb
Idorsia, a biotechnology company spun off from Actelion in 2017, has been making waves in the pharmaceutical industry. Since its inception, the company has faced challenges but has shown signs of progress.
Currently, Idorsia's share price stands at around 4.20 Swiss francs per share, having increased by over 420 percent this year, making it the top performer in the Swiss Performance Index (SPI). However, it's important to note that since the spin-off, Idorsia has temporarily lost 93 percent of its value.
The company's pipeline includes several promising candidates, with Lucerastat being the only one currently in phase III, valued by Deutsche Bank. Lucerastat, a potential treatment for lysosomal storage disorders, is seen as Idorsia's most advanced drug candidate.
Selatogrel, another drug, is considered clinically less competitive according to Deutsche Bank experts. Despite this, Idorsia has three more promising active substances in its pipeline, the competitiveness of which remains uncertain.
Idorsia's marketed products include Quviviq, a sleep aid, and Tryvio, a blood pressure medication. Quviviq, however, faces significant barriers to market access as it is considered a controlled substance in the US. Idorsia is actively working to remove Quviviq from this list.
Tryvio, on the other hand, is still seeking a partner for its distribution.
Idorsia's financial situation is complex. The company has posted losses totaling 3.4 billion Swiss francs since the spin-off. The current long-term debt of Idorsia is around 1.3 billion Swiss francs, with over 80 percent in the form of convertible bonds and convertible loans.
J&J, the buyers of Actelion, provided 1 billion Swiss francs for continued research in the new company, Idorsia. Analysts expect that future research and development expenditures will be targeted more effectively, potentially halving costs.
Idorsia's new management aims to bring the company into the black by 2027. The first profits from Idorsia are expected at best in two years. It's worth noting that Idorsia has a high price-to-earnings ratio (P/E) for 2027 (21), higher than the average for European small- and mid-cap pharmaceutical and biotech companies (less than 15).
In the last eleven trading days, Idorsia's share price closed in the red only once, namely today, Wednesday. This could indicate a temporary downturn, or it could be a sign of larger trends.
The identity of Idorsia's CEO (Vorstandsvorsitzender), who took office in July 2021, was not found in the provided search results. This information could not be verified at the time of writing.
In conclusion, Idorsia is a biotech company with a promising pipeline and significant challenges. Its share price has performed well this year, but the company has a long road ahead to achieve profitability. The future of Idorsia remains uncertain, but with effective management and strategic decisions, it has the potential to succeed.
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