IDRSF - Idorsia: Disappointing Detour On The Road To Revenue (Rating Downgrade)
2023-04-30 23:57:33 ET
Summary
- Downgrade to Sell: Due to lower-than-expected sales of Quviviq and clazosentan (Pivlaz), high cash burn, and a short cash runway, we are downgrading our rating on Idorsia stock to Sell.
- Disappointing Q1 2023 Results: Idorsia's Q1 performance fell short of expectations, with flat Quviviq sales and Pivlaz sales plateauing, signaling limited upside potential for revenue growth.
- Imminent Need for Capital: Idorsia's net debt of CHF1.1bn and a cash balance of CHF212m indicate an urgent need for capital, with the possibility of a dilutive equity raise.
- Risks and Bottom Line: Key risks include sales underperformance, high cash burn, short cash runway, potential dilutive equity raise, and lack of near-term clinical catalysts, all contributing to our decision to downgrade Idorsia's rating to Sell.
For further details see:
Idorsia: Disappointing Detour On The Road To Revenue (Rating Downgrade)