Addex Therapeutics Q1 2024 Financial Results and Corporate Update

Addex Therapeutics, a clinical-stage biopharmaceutical entity dedicated to the development of innovative small molecule allosteric modulators for neurological conditions, has announced its financial performance for Q1 2024 alongside a corporate update.

Tim Dyer, CEO of Addex, remarked, “The Neurosterix transaction has not only extended our financial runway beyond 2026 but will also expedite the progress of our preclinical programs. By the end of the second quarter of 2024, we look forward to selecting drug candidates under our Indivior collaboration.” He further highlighted the company's focus for the remainder of 2024, emphasizing the advancement of the GABAB PAM drug candidate for chronic cough and dipraglurant for brain injury recovery. Additionally, Addex is collaborating with Janssen Pharmaceuticals Inc. to assess the future development of ADX71149.

Operational Milestones

- The selection process for drug candidates under the GABAB PAM collaboration with Indivior is expected to conclude by the end of Q2 2024.
- The launch of Neurosterix, in collaboration with Perceptive Advisors, raised USD 63 million to fast-track the development of preclinical programs, including M4 PAM aimed at treating schizophrenia.
- Addex received CHF 5 million and a 20% equity stake in Neurosterix in April 2024, ensuring cash stability beyond 2026.
- Janssen Pharmaceuticals Inc. completed a Phase 2 study of ADX71149 for epilepsy, though it did not yield statistically significant top-line results.

Q1 2024 Financial Highlights

- Income: CHF 235,000, down from CHF 502,000 in Q1 2023, largely due to reduced funding from research collaborations.
- R&D Expenses: Remained stable at CHF 245,000, consistent with the same period in 2023, mainly focused on the GABAB PAM program.
- G&A Expenses: Increased to CHF 778,000 from CHF 615,000 in Q1 2023, primarily due to higher legal fees.
- Total Operating Loss: Expanded to CHF 788,000 from CHF 368,000, influenced by decreased income and increased G&A expenses.
- Net Loss from Continuing Operations: Rose to CHF 735,000 from CHF 370,000 in Q1 2023.
- Net Loss from Discontinued Operations: Increased to CHF 2,352,000 from CHF 2,037,000.
- Overall Net Loss: Widened to CHF 3,087,000 from CHF 2,407,000.
- Basic and Diluted Net Loss per Share:** Held stable at CHF 0.01 from continuing operations and showed a slight improvement from CHF 0.04 to CHF 0.03 overall.
- **Cash and Equivalents: Dropped to CHF 1.6 million as of March 31, 2024, from CHF 5.6 million a year prior, primarily due to operational expenditures.

Financial Summary

Addex’s financial statements for Q1 2024 reflect the reclassification of certain operations following the Neurosterix transaction. This restructuring led to a distinct separation between continuing and discontinued operations in the financial reporting.

Income: Reduced by CHF 0.3 million due to lower funding from research collaborations with Indivior.
R&D Expenses: Steady at CHF 0.3 million, focused on the GABAB PAM program.
G&A Expenses: Increased by CHF 0.2 million, driven mainly by legal costs.
Net Loss from Continuing Operations: Increased due to decreased income and higher G&A expenses.
Cash Position: Decreased to CHF 1.6 million, affected by operational costs and offset by fundraising efforts.

Corporate Developments

Addex is persistently working on its lead drug candidate, ADX71149, in partnership with Janssen, despite the recent Phase 2 study not meeting statistical significance. The company is also advancing dipraglurant for Parkinson’s disease-associated dyskinesia and post-stroke recovery, alongside exploring new candidates for chronic cough in collaboration with Indivior.

Addex’s collaboration with Neurosterix aims to develop allosteric modulators for various disorders, bolstering its portfolio with ongoing support from investors and strategic partners.

Conclusion

Addex Therapeutics continues to navigate the challenges and opportunities in the biopharmaceutical landscape, leveraging strategic collaborations and focused research to advance its pipeline of neurological disorder treatments.

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