Addex gets good news: Indivior picks up addiction asset after J&J epilepsy drug flop

Addex Therapeutics has recently seen a significant surge in its stock value, which rose by 38% to reach $10.36 per share at 10:30 a.m. ET, compared to $7.49 at market close the previous day. This rise follows the announcement that Indivior will be acquiring a small molecule allosteric modulator from Addex. This molecule is aimed at treating substance use disorder, and the deal opens up the possibility for Addex to earn up to $300 million in biobucks, along with royalties.

The selection of this clinical candidate is part of a broader agreement between Indivior and Addex, which was initially established in 2018. The licensing and research agreement from that time focused on the global development and commercialization of ADX71441, a positive allosteric modulator (PAM) intended for addiction treatment. However, the project is currently "under evaluation," as noted on Addex's pipeline website.

The 2018 deal included an upfront payment of $5 million from Indivior, along with an additional $4 million allocated for an Addex research program aimed at discovering more PAM compounds that activate GABA responses at the GABAB receptor. Indivior also promised up to $330 million in potential milestone payments to Addex.

Now, Indivior has decided to take over all future development for an unnamed compound from the partnership, aimed at treating substance use disorder. According to the agreement, Addex will also continue to advance its own independent GABAB PAM program, derived from the same collaboration, targeting chronic cough treatment.

Tim Dyer, the CEO of Addex, expressed his satisfaction with the progress made in collaboration with Indivior, stating that more than five years of research have led to the selection of clinical candidates. This was made possible by leveraging Addex's industrial-scale allosteric modulator discovery platform.

The biotech company will now focus on advancing the cough candidate into preclinical studies. The aim is to submit a request to the FDA to initiate human testing. This development is particularly significant for Addex, as it follows a setback in July when Johnson & Johnson (J&J) discontinued the development of an epilepsy drug that was also partnered with Addex.

Earlier this year, Addex disclosed that its PAM program, a result of a 2004 collaboration with J&J’s Janssen unit, had failed to reduce seizures in a phase 2 trial. This candidate, known as ADX71149, has since been removed from both Addex's and J&J's pipelines.

Addex is also working on another clinical-stage asset called dipraglurant, a mGlu5 negative allosteric modulator. This program has faced its own challenges. In 2022, Addex reported that a mid-stage trial for expanding dipraglurant into muscle spasm disorders yielded "inconclusive" data. A planned Parkinson’s study was also derailed by COVID-19-related disruptions. Currently, Addex is evaluating dipraglurant as a potential treatment for recovery following post-stroke or traumatic brain injury.

In summary, Addex Therapeutics is experiencing a notable uplift in its stock price fueled by the latest partnership developments with Indivior. These moves offer new avenues for both companies to advance treatment options in substance use disorders and chronic cough, despite the setbacks in other therapeutic areas.

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