Addex Therapeutics Ltd (ADR) ((ADXN)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Addex Therapeutics Ltd (ADR) presented a balanced sentiment, highlighting both significant achievements and notable challenges. The company showcased its progress in strategic partnerships and financial stability, while also addressing decreased income and increased net loss from associated ventures. The call also pointed out the limited cash available for unpartnered programs, painting a comprehensive picture of the company’s current standing.
Successful Completion of IND-Enabling Studies
Addex Therapeutics marked a significant milestone with the successful completion of IND-enabling studies for a GABAB PAM drug candidate aimed at substance use disorders. This achievement is a key development in their partnership with Indivior, underscoring the progress in their collaborative efforts.
Regained Rights to mGlu2 Program
In a strategic move, Addex regained the rights to the mGlu2 positive allosteric modulator program from Johnson & Johnson. This includes the Phase II asset ADX71149, positioning Addex to explore new therapeutic indications and potentially expand their market reach.
Investment in Stalicla
Addex has invested in Stalicla, a company focused on neurodevelopmental disorders. Stalicla’s precision medicine platform for patient stratification aligns with Addex’s strategic interests, potentially enhancing their capabilities in personalized medicine.
Financial Stability
The company reported a cash reserve of CHF 2.3 million, providing financial stability and a runway through mid-2026. This financial position is crucial for sustaining operations and supporting ongoing projects.
Reduced Cash Burn
Following the Neurosterix spin-out transaction, Addex significantly reduced its cash burn. This strategic move is expected to enhance financial efficiency and allocate resources more effectively.
Decrease in Income
Addex experienced a decrease in income by CHF 0.1 million in Q2 2025 compared to the previous year. This decline is primarily attributed to the completion of the funded research phase with Indivior, highlighting the need for new revenue streams.
Increased Net Loss from Neurosterix
The company’s share of net loss from its 20% participation in Neurosterix Group increased by CHF 0.7 million, totaling CHF 1.2 million for Q2 2025. This increase reflects the financial challenges associated with their investment in Neurosterix.
Limited Cash for Unpartnered Programs
Addex faces a financial constraint as the current cash reserves do not support the advancement of unpartnered programs into the clinic. This limitation underscores the need for additional funding to progress these initiatives.
Forward-Looking Guidance
Looking ahead, Addex Therapeutics is optimistic about its GABAB PAM program, with the potential to receive up to USD 330 million in milestone payments from Indivior. The company is also advancing its independent GABAB PAM program for chronic cough, with promising preclinical results. However, they acknowledge the need for additional financing to initiate IND-enabling studies for this program. Financial projections indicate a runway through mid-2026, although this does not cover unpartnered program advancements.
In summary, the earnings call for Addex Therapeutics Ltd (ADR) reflected a balanced sentiment, highlighting both achievements and challenges. The company is making strides in strategic partnerships and financial management, yet faces hurdles in income generation and funding for unpartnered programs. As Addex navigates these challenges, its focus on strategic growth and financial stability remains clear.