Idorsia Ltd (IDIA.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

Idorsia Ltd, a biopharmaceutical company, discovers, develops, and commercializes drugs for unmet medical needs in Switzerland.The company has a clinical development pipeline that cover various therapeutic areas, including CNS, cardiovascular, and immunological disorders, as well as orphan diseases.Idorsia Ltd has a collaboration agreement with Janssen Biotech Inc.

to jointly develop and commercialize aprocitentan and its derivative compounds or products; license agreement with Mochida Pharmaceutical for the supply, co-development, and comarketing of daridorexant; and Hoffman-La Roche Inc.to develop and market compounds in the field of cancer immunotherapy.It also has a collaboration with Antares Pharma, Inc.

for the development of a self- administered drug device product for Selatogrel; and Neurocrine Biosciences, Inc.to develop and commercialize ACT-709478, which is in Phase II clinical trial for the treatment of epilepsy.The company was incorporated in 2017 and is headquartered in Allschwil, Switzerland.

Show Full description

1.b. Last Insights on IDIA

Idorsia Ltd's recent performance was driven by several positive factors. The company's QUVIVIQ (daridorexant) insomnia treatment demonstrated strong sales growth in Q1 2025, with total Idorsia-led net sales of CHF 25 million. Demand for QUVIVIQ EUCAN increased by 50% from Q4 2024 to Q1 2025, driven by reimbursed markets. Additionally, the treatment showed improved sleep maintenance and next-morning sleepiness in a recent study published in Sleep Medicine. Furthermore, the company successfully restructured its convertible bond debt, securing CHF 150 million in new funding and removing a significant debt overhang.

1.c. Company Highlights

Last Price	3.73
Change Percentage	4.33%
Open	3.6
Previous Close	3.58
Market Cap ( Millions)	745
Volume	1178767
Year High	4.85
Year Low	0.63
M A 50	3.61
M A 200	2.41

FCF Yield	-35.12%
Dividend Yield	0.00%
ROE	11.56%
Debt / Equity	-114.17%
Net Debt / EBIDTA	-2387.92%
Price To Book	-0.67
Price Earnings Ratio	-5.71
Price To FCF	-2.85
Price To sales	3.43
EV / EBITDA	-38.32

2. Idorsia's Strategic Transformation Bears Fruit

Idorsia's financial performance in the first half of 2025 was marked by significant improvements, with net revenue reaching CHF130 million, including CHF58 million from total QUVIVIQ product sales. The company's non-GAAP operating results improved from a loss of CHF170 million to a loss of CHF15 million, driven by higher contract revenue, cost-saving measures, and a strong commercial contribution. U.S. GAAP net income was CHF52 million, including a gain of CHF90 million from negotiations with Viatris. The company's liquidity stood at CHF72 million, with an undrawn amount of CHF80 million under a new money facility. Earnings per share (EPS) came out at '-0.2', in line with estimates.

Publication Date: Jul -31

                                    📋 Highlights
                                    CEO Leadership and Strategic Focus:
                                                New CEO Srishti Gupta has set clear priorities, including unlocking QUVIVIQ's value and expanding partnerships.
QUVIVIQ Sales Growth:
                                                QUVIVIQ net sales more than doubled to CHF 56 million in H1 2025, driven by Europe, Canada, and a stabilized U.S. model.
Improved Financial Performance:
                                                Non-GAAP operating results improved significantly from a CHF 170 million loss to a CHF 15 million loss.
Commercial Expansion:
                                                QUVIVIQ prescriptions in the U.S. reached 620,000, with 56,000 healthcare professionals prescribing the product.
Financial Stability and Future Outlook:
                                                Idorsia extended its cash runway to end-2026, targeting commercial profitability in 2026 and overall profitability in 2027.

                                

Revenue Growth and Margin Expansion

The company's QUVIVIQ net sales more than doubled in the first half of 2025, rising from CHF23 million to CHF56 million, driven by Europe, Canada, and a stabilized U.S. model. According to CEO Srishti Gupta, "QUVIVIQ is a global brand with rapidly growing sales, and its European footprint is expanding with public reimbursement secured in the UK, France, Germany, and Austria." This momentum is expected to continue, with analysts estimating next year's revenue growth at 73.5%.

Strategic Priorities and Pipeline Progress

Idorsia's strategic priorities include unlocking QUVIVIQ's full value, expanding strategic partnerships, accelerating high-value pipeline assets, balancing commercial and pipeline ambitions with financial discipline, and maintaining an inspired and engaged organization. The company is advancing its pipeline, with new data on lucerastat supporting further Phase III investigation in Fabry disease and the first results with its synthetic glycan vaccine. Idorsia is also seeking partnerships to realize the full potential of its products, including TRYVIO, which is approved for uncontrolled and resistant hypertension.

Valuation and Outlook

At current levels, Idorsia trades at a P/S ratio of 4.51, which may be seen as relatively high given the company's current financial performance. However, the stock's EV/EBITDA ratio of -12.17 suggests that the market is pricing in significant future growth. With a P/E ratio of -2.86, the stock is currently not profitable on a GAAP basis, but the company's liquidity position and cost-saving efforts are encouraging. As Idorsia aims to achieve commercial profitability in 2026 and overall profitability by the end of 2027, investors will be closely monitoring the company's progress toward these goals.

3. NewsRoom

Looking at the Changing Narrative for Idorsia After Recent Analyst and Market Developments

Nov -20

Source:

Idorsia’s aprocitentan improved key prognostic indicators in patients with difficult-to-control hypertension

Nov -10

Source:

Idorsia to present new aprocitentan insights at ASN Kidney Week & AHA Scientific Sessions

Nov -05

Source:

QUVIVIQ sales up >130% driving Idorsia toward profitability – 9M 2025 results

Oct -30

Source:

Idorsia (SWX:IDIA): Evaluating Valuation After Equity Raise to Fund QUVIVIQ Growth and R&D

Oct -13

Source:

Idorsia launches an offering of registered shares – to fund the company to overall profitability

Oct -09

Source:

Global expansion of Idorsia’s QUVIVIQ continues as Simcere launches in China

Sep -22

Source:

Idorsia’s JERAYGO (aprocitentan) approved in Switzerland for the treatment of resistant hypertension

Sep -19

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Drugs

Expected Growth: 9.27%

Idorsia Ltd's 9.27% growth in drugs is driven by increasing demand for rare disease treatments, strategic partnerships, and successful pipeline developments. The company's focus on innovative therapies, such as aprocitentan for resistant hypertension, and its expanding presence in the US market also contribute to its growth momentum.

7. Detailed Products

Quviviq (Daridorexant)

A dual orexin receptor antagonist for the treatment of insomnia characterized by difficulties with sleep onset and/or sleep maintenance.

Piqray (Alpelisib)

A phosphatidylinositol 3-kinase (PI3K) inhibitor for the treatment of breast cancer.

Cresemba (Isavuconazole)

A triazole antifungal for the treatment of invasive aspergillosis and mucormycosis.

8. Idorsia Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

Idorsia Ltd has a moderate threat of substitutes due to the availability of alternative treatments for sleep disorders.

Bargaining Power Of Customers

Idorsia Ltd has a low bargaining power of customers due to the specialized nature of its products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

Idorsia Ltd has a moderate bargaining power of suppliers due to the presence of multiple suppliers for raw materials and the company's dependence on them.

Threat Of New Entrants

Idorsia Ltd has a high threat of new entrants due to the growing demand for sleep disorder treatments and the increasing interest in the pharmaceutical industry.

Intensity Of Rivalry

Idorsia Ltd operates in a highly competitive industry with several established players, leading to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	675.22%
Debt Cost	3.95%
Equity Weight	-575.22%
Equity Cost	8.40%
WACC	-21.67%
Leverage	-117.38%

11. Quality Control: Idorsia Ltd passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Idorsia

A-Score: 5.1/10

Value: 8.4

Growth: 6.8

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

Genus

A-Score: 3.9/10

Value: 1.7

Growth: 3.9

Quality: 4.7

Yield: 1.9

Momentum: 8.0

Volatility: 3.0

1-Year Total Return ->

Barinthus Bio

A-Score: 3.5/10

Value: 8.4

Growth: 4.8

Quality: 3.4

Yield: 0.0

Momentum: 4.5

Volatility: 0.0

1-Year Total Return ->

AC Immune

A-Score: 3.2/10

Value: 6.4

Growth: 4.0

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 0.0

1-Year Total Return ->

Atrys Health

A-Score: 2.7/10

Value: 6.0

Growth: 3.7

Quality: 1.9

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

Ryvu Therapeutics

A-Score: 2.6/10

Value: 6.2

Growth: 2.6

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-30.00%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

-21.67%

Idorsia Ltd - CH0363463438

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IDIA

1.c. Company Highlights

Cheaper

Weak Momentum

More Volatile

Earnings Beats

Revenues Miss

Earnings Miss

Lower Growth

Revenues Beats

Stable Momentum

Average Yield

Average Growth

Strong Momentum

2. Idorsia's Strategic Transformation Bears Fruit

Revenue Growth and Margin Expansion

Strategic Priorities and Pipeline Progress

Valuation and Outlook

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.27%)

6. Segments

Drugs

Expected Growth: 9.27%

7. Detailed Products

Quviviq (Daridorexant)

Piqray (Alpelisib)

Cresemba (Isavuconazole)

8. Idorsia Ltd's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Idorsia Ltd passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

-2.42$

Current Price

3.73$

Potential

-164.82%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA