Idorsia In Deal With JNJ's Janssen Biotech For Return Of Rights For Aprocitentan; Stock Down

(RTTNews) - Shares of Idorsia Ltd (IDRSF. OB) were losing around 5 percent after the Swiss biotech agreed with Janssen Biotech Inc., affiliated to Johnson & Johnson, for the return of rights for aprocitentan.

In return, Idorsia will pay up to 306 million Swiss francs, subject to marketing application approval by the US FDA and Europe's EMA.

The agreement will be effective following receipt of the clearance relating to the United States Hart-Scott Rodino Antitrust Improvements Act of 1976.

Under the deal, Idorsia will reacquire the development and commercialization rights for aprocitentan from Janssen. The consideration depends on Idorsia's revenues such as 30% of any consideration received by Idorsia from a potential out-licensing or divestment of aprocitentan; 10% of any consideration received by Idorsia from a potential out-licensing or the divestment of any other Idorsia product, following the first approval of aprocitentan; and low- to mid-single digit royalties on total group product net sales, beginning from the quarter after first aprocitentan approval.

At the effective date of the agreement, Janssen funding obligations to aprocitentan cease. Janssen licenses to aprocitentan IP (excluding pulmonary hypertension) will terminate and Janssen will transfer the brand name and relating commercial materials to Idorsia. Janssen will retain licenses in the pulmonary hypertension field.

The agreement also eliminates the revenue-sharing agreement in respect of ponesimod.

Andre Muller, Chief Financial Officer, said, "If aprocitentan is approved in the US and Europe as we expect, Idorsia would have an additional product in its portfolio giving the company more strategic flexibility, and potentially allows Janssen to recoup over time their investment in aprocitentan."

In Switzerland, Idorsia shares were trading at 4.782 francs, down 5.49%.