Femtech startup Obseva has made an unpleasant decision to gradually end its operations leading to the layoff of all employees, including the CEO. For Idorsia and Crispr Therapeutics, business continues. The companies reported having positive cash positions stemming from partnerships and ongoing business activities and investments. And Sophia Genetics was able to increase revenue and reduce losses.
Since its inception in 2012, ObsEva SA (SIX: OBSN) has focused on the development of novel therapies for women's health and pregnancy, with a program focused on improving in vitro fertilization success rates. Due to low cash reserves, the company announced that it would wind down its operations with the termination of all of its employees, including Fabien de Ladonchamps, CEO. The company has notified SIX Swiss Exchange's listing authority that there was a substantial risk that it will lack the resources to have financial statements for 2023 prepared under IFRS audited and that it is as a result likely not going to be able to satisfy the requirements for maintaining its listing on SIX. Fabien de Ladonchamps, the CEO, will remain in function during the notice period for the duration of the moratorium process and beyond, as needed. This circumstance may lead to a delisting.
A $350 million upfront payment for Idorsia
Business continues for Idorsia which just signed a significant deal that will see the company receive a $350 million upfront payment. A specialist in the discovery, development and commercialization of small molecules to transform the horizon of therapeutic options, Idorsia has been listed on the SIX Swiss Exchange since 2017 and has over 800 specialists. The company has entered into agreements for a significant global research and development collaboration with Viatris Inc. (NASDAQ: VTRS), a global healthcare company, for the global development and commercialization of two Phase 3 assets – selatogrel and cenerimod.
In addition to the upfront payment, the company will receive potential development and regulatory milestone payments, and certain contingent payments of additional sales milestone payments and tiered royalties from mid-single- to low double-digit percentage on annual net sales. Idorsia will contribute up to USD 200 million in the next 3 years and will transfer to Viatris at closing the dedicated personnel to both programs. Viatris will have worldwide commercialization rights for both selatogrel and cenerimod (excluding, for cenerimod only, Japan, South Korea and certain countries in the Asia-Pacific region). The transaction is expected to close at the end of March.
Positive cash balance for CRISPR Therapeutics
The 2023 financial results for CRISPR Therapeutics (Nasdaq: CRSP), the company focused on creating transformative gene-based medicines for serious diseases, are also out and according to the company’s CEO Samarth Kulkarni, it was a monumental year. Multiple milestones were achieved across its pipeline, including the first-ever approval of a CRISPR-based gene-editing therapy CASGEVY in the U.S., European Union, Great Britain, the Kingdom of Saudi Arabia and Bahrain for the treatment of patients with either sickle cell disease (SCD) or transfusion-dependent beta-thalassemia (TDT). In addition, CRISPR started clinical trials for its first in vivo programs CTX310 and CTX320, targeting cardiovascular diseases. In Immuno-Oncology and Autoimmune Diseases, the company has ongoing clinical trials for its CAR T product candidates, CTX112 and CTX131, for the treatment of both liquid and solid tumours.
On the financial spectrum, the company last month strengthened its balance sheet with a $280 million registered direct offering, bringing its current cash position to over $2.1 billion, including a $200 million milestone received in January 2024 for the approval of CASGEVY.
Sophia Genetics progresses slowly
Sophia Genetics revenue grew 31% year-over-year to $62.4 million for the full year 2023. The operating loss was $74.8 million, representing a 15% year-over-year improvement. Cash burn improved 36% to $55.4 million, compared to $86.7 million in FY 2022. During 2023, the company saw continued adoption of SOPHiA DDM worldwide as the Platform performed a record 317,000+ analyses across the 450 core genomics customers Sophia serves. For 2024 the company expects a revenue between $78 million and $81 million an adjusted operating loss between $45M and $50M, compared to $55.9 million in FY 2023. Following the announcement of the results on Tuesday morning, the share price fell by more than 15%.
(Press release/RAN)
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