Addex Therapeutics (ADXN) Q3 2024 earnings summary

Executive summary

• Significant progress in the GABA-B PAM program, with a compound selected by Indivior for substance use disorder and IND-enabling studies initiated.

• Independent GABA-B PAM program for chronic cough advanced, with promising preclinical data and IND-enabling studies planned for 2025, pending financing.

• Divested allosteric modulator discovery platform and preclinical programs to Neurosterix Pharma Sàrl, receiving CHF 5.0 million cash and a 20% equity stake in Neurosterix US Holdings LLC.

• Dipraglurant repositioned for brain injury recovery, with plans to restart clinical development.

• Janssen terminated development of lead partnered drug candidate ADX71149 after Phase 2 trial; Addex is evaluating future options.

Financial highlights

• Q3 2024 income from continuing operations was CHF 0.1 million, down from CHF 0.3 million in Q3 2023, mainly from Indivior collaboration research funding.

• Revenue for the nine months ended September 30, 2024 was CHF 0.4 million, down from CHF 1.5 million year-over-year, mainly due to the end of the Indivior research agreement.

• Net profit for the nine months was CHF 8.3 million, reflecting a CHF 14.0 million gain from the Neurosterix Transaction, offset by losses from discontinued and continuing operations.

• Cash and cash equivalents stood at CHF 3.3 million as of September 30, 2024.

• Accumulated deficit was CHF 352.2 million as of September 30, 2024.

Outlook and guidance

• Existing cash and cash equivalents expected to fund operations through 2026.

• IND-enabling studies for the GABA-B PAM chronic cough program are expected to start in 2025, subject to financing.

• Anticipates increased expenses as development of GABA-B PAM for chronic cough advances and as further clinical trials are initiated.

• Additional funding will be required for future development, regulatory, and commercialization activities.

• Dipraglurant is ready to restart clinical development for brain injury recovery.