Idorsia completes capital increase of CHF 535.5 million

Idorsia Ltd announced that a total of 23,800,000 new shares were sold in connection with the at-market rights offering, of which 15,825,319 new shares were subscribed to by existing shareholders in the rights offering and 7,974,681 new shares were placed with investors in the bookbuilding process.

Idorsia expects to raise gross proceeds of CHF 535.5 million based on the offer price of CHF 22.50 per new share. Idorsia will use the net proceeds of approximately CHF 520 million from the capital increase to support the regulatory filing and, if approved, commercial launch of daridorexant and to fund the further development of its diversified pipeline.

Daridorexant is a dual orexin receptor antagonist (DORA) developed for the treatment of insomnia. The Phase 3 registration program demonstrated the efficacy of daridorexant on objective and subjective sleep parameters, and showed positive effects on daytime functioning, while keeping a favorable safety profile. Idorsia has now collected the required data and initial discussions with the FDA have been held, keeping the company on target for filing the New Drug Application (NDA) with the FDA around the end of 2020. This would in turn allow for commercialization and launch – subject to approval – in the first half of 2022.

André C. Muller, Chief Financial Officer, commented: "I am satisfied with the result of this capital increase by way of an at-market rights offering. We received strong support from our existing shareholder base during the subscription period, and the remainder of the offering enabled some shareholders to increase their equity stake while we could also welcome first-rate new investors through the bookbuilding process. I was particularly encouraged by the quality of the discussions we had during the meetings with prospective investors, it seems that the community truly understands that Idorsia is a unique company with very exciting times ahead. The increased liquidity will take us through to the next inflexion points, namely key clinical data from late-stage assets and the launch of our first product, daridorexant.”

The listing according to the International Reporting Standard of SIX Swiss Exchange, first trading day, settlement and delivery of the new shares will be on October 23, 2020.