Idor­sia lays off up to 300 peo­ple, plans for pipeline pri­or­i­ti­za­tion in ef­fort to ex­tend cash run­way

Idor­sia re­vealed a ma­jor cost re­duc­tion ini­tia­tive on Tues­day, lay­ing off up to 300 peo­ple and re­view­ing its pipeline for pro­grams to cut or out-li­cense. The re­struc­tur­ing fol­lows a warn­ing in Ju­ly, when the com­pa­ny said it was look­ing to re­duce its cash burn by half as it works to build its in­som­nia drug sales.

The com­pa­ny said 475 jobs at its head­quar­ters in Switzer­land had been “made re­dun­dant” by can­cel­ing open jobs, not re­plac­ing peo­ple who left and lay­ing off up to 300 peo­ple most­ly in R&D. Idor­sia said it plans to fin­ish the cost-cut­ting ini­tia­tive be­fore the end of the year, with it be­com­ing “ful­ly ef­fec­tive” at the be­gin­ning of 2024. Cut­ting jobs cost the com­pa­ny CHF 11 mil­lion ($12.3 mil­lion).

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