What is the timeline for completing the repurchase offer and are there any conditions or caps on participation?

Timeline & Participation Limits

Idorsia’s interim results indicate that the repurchase offer for the 2025‑ and 2028‑year convertible bonds is scheduled to be completed by 30 June 2025 (the “closing date” set in the Art. 53 LR ad‑hoc announcement). The company will accept bondholder submissions up until that date, after which any remaining bonds will be redeemed on the final settlement day – 2 July 2025.

The offer is subject to a cap per holder: each eligible holder may submit a maximum of USD 5 million of bonds (or the equivalent in local currency) for redemption. Moreover, the total amount the company is prepared to repurchase is USD 150 million across both series, meaning the program will be scaled‑down if aggregate demand exceeds the cap. No bond can be redeemed in excess of 10 % of the total outstanding issue per holder, and the repurchase is contingent on the bonds remaining “in‑the‑money” at the reference conversion price at the time of exercise.

Trading Implications

The defined timeline creates a short‑run catalyst: bond prices (and the underlying equity) typically tighten as the June 30 deadline approaches, reflecting the expected cash outflow and the reduction of conversion‑option value. If demand for the redemption exceeds the per‑holder caps, we can expect a price premium on the convertible bonds and a downward pressure on Idorsia’s equity as the conversion upside is stripped away. Conversely, if the program is undersubscribed, the bonds may trade at a discount, offering a relative‑value entry point for yield‑seeking investors.

From a technical standpoint, the June 30 deadline coincides with a typical “sell‑the‑news” rally; watch for a breakout above the recent high of the convertible bond series and a corresponding pull‑back in the stock. A breach of the USD 150 million cap (i.e., oversubscription) would likely trigger a sharp price rally in the bonds and a sell‑off in the equity as the market prices in the loss of future upside. Position accordingly: consider short‑duration bond exposure or a put spread on the equity if you anticipate a post‑repurchase price correction.