Addex Therapeutics (ADXN) Q1 2024 earnings summary

Executive summary

• Divested allosteric modulator platform and preclinical programs to Neurosterix, receiving CHF 5M and a 20% equity stake, strengthening the balance sheet and reducing dilution risk.

• Advanced GABAB PAM program with Indivior, on track for candidate selection and IND-enabling studies by end of June 2024.

• Janssen's phase II epilepsy study with ADX71149 did not meet its primary endpoint; full data expected in H2 2024 to determine next steps.

• Dipraglurant repositioned for post-stroke recovery and traumatic brain injury, with strong preclinical rationale and patent position; partnering discussions ongoing.

Financial highlights

• Q1 2024 income from continuing operations was CHF 0.2M, down from CHF 0.5M in Q1 2023, mainly from Indivior collaboration.

• Net loss for Q1 2024 was CHF 3.1M, compared to CHF 2.4M in Q1 2023; net loss from continuing operations was CHF 0.7M, with discontinued operations contributing CHF 2.4M net loss.

• R&D expenses stable at CHF 0.2M–0.3M; G&A expenses increased to CHF 0.8M due to legal fees for Neurosterix transaction.

• Q1 2024 ended with CHF 1.6M in cash; CHF 5M from Neurosterix received in April 2024, not included in Q1 figure.

• Accumulated deficit reached CHF 363.5M as of March 31, 2024.

Outlook and guidance

• GABAB PAM program with Indivior and independent chronic cough program both expected to enter IND-enabling studies in H2 2024.

• Full data from Janssen's epilepsy study expected in H2 2024, with potential for program return if collaboration ends.

• Existing cash and proceeds from Neurosterix sale expected to fund operations through 2026, but additional funding will be required for future development and commercialization.

• Expenses anticipated to increase as GABAB PAM cough candidate advances and further clinical trials are initiated.