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Move likely to be completed by early next year.
Idorsia, a pharmaceutical research company, has announced the start of a cost reduction initiative with the target to reduce cash-burn at headquarters by approximately 50%. Crediting the current global financial situation and lower product sales, the organization believes resources should be strictly shifted to its immediate objective, which is to maximize the time the company has to deliver commercial success with its products. Idorsia intends for the initiative to be in full effect by the beginning of 2024.
According to the company, around 500 positions could be deemed unneeded, especially in R&D and related departments.
“I continue to believe that QUVIVIQ can be the success we hope for, but unfortunately it will take longer than originally planned,” said Jean-Paul Clozel, CEO, Idorsia, in a company press release. “Idorsia’s immediate objective is therefore to maximize the time the company has to deliver commercial success with its products. This means making any funds that are raised last as long as possible by significantly reducing our global cash-burn. The cost reduction initiative together with potential collaborations will give the company the time it needs to realize the value we have created. I deeply regret having to launch such an initiative, but we simply cannot sustain current investment levels.”
Reference: Idorsia announces a cost reduction initiative to be implemented by the end of 2023. GlobeNewswire. July 21, 2023. Accessed July 24, 2023. https://www.globenewswire.com/news-release/2023/07/21/2708683/0/en/Idorsia-announces-a-cost-reduction-initiative-to-be-implemented-by-the-end-of-2023.html