Addex Therapeutics Ltd (ADR) ((ADXN)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call for Addex Therapeutics Ltd (ADR) painted a picture of strategic progress and financial challenges. The company highlighted its significant strategic partnerships and advancements in drug development programs, including the successful Series A financing for Neurosterix and progress in the GABAB PAM program. However, the sentiment was balanced by challenges such as decreased income and cash limitations for unpartnered programs.
Successful Series A Financing
In 2024, Addex Therapeutics successfully launched Neurosterix with a US$65 million Series A financing. This financing round was led by Perceptive Advisors, securing essential funds for the platform and its pre-clinical portfolio, marking a significant milestone in the company’s strategic growth.
Partnership with Indivior
Addex’s partnership with Indivior reached a new level as Indivior selected a compound for development in substance use disorders. This partnership could potentially bring up to US$330 million in milestone payments and tiered royalties to Addex, highlighting a promising avenue for future revenue.
Progress in GABAB PAM Program
The GABAB PAM program saw notable progress with the completion of the R&D phase, delivering multiple drug candidates. IND-enabling studies have commenced, focusing on substance use disorders, which could pave the way for future therapeutic developments.
Neurosterix Spin-out
The spin-out of Neurosterix was a strategic move, securing CHF5 million in cash and a 20% equity interest. This transaction alleviated some financial pressure and positioned Addex to benefit from future clinical advancements through its equity stake.
Development of Dipraglurant
Addex is repositioning dipraglurant for brain injury recovery, with the potential to enhance rehabilitation outcomes. This strategic shift could open new therapeutic pathways and market opportunities.
Decreased Income and R&D Expenses
The company reported a decrease in income to CHF400,000 in 2024 from CHF1.6 million in 2023, primarily due to the completion of a research phase with Indivior. Additionally, R&D expenses saw a slight reduction by CHF0.2 million, reflecting a cautious approach to financial management.
Cash Limitation for Unpartnered Programs
Addex faces cash limitations that hinder the progression of unpartnered programs into the clinic. This financial constraint underscores the need for strategic partnerships and funding to advance these initiatives.
Dependence on Neurosterix
The company has a significant reliance on Neurosterix for the continuation of certain programs, having divested major assets and staff. This dependence highlights the importance of Neurosterix’s success for Addex’s future.
Forward-Looking Guidance
During the 2024 Full Year Financial Results Conference Call, Addex Therapeutics provided comprehensive guidance on its programs and financial metrics. The company emphasized the launch of Neurosterix and its financial benefits, alongside progress in the GABAB PAM program. Addex expects its current cash reserves to sustain operations until mid-2026, with strategic emphasis on leveraging its 20% interest in Neurosterix for future advancements.
In summary, Addex Therapeutics’ earnings call reflected a balanced sentiment, with significant strategic advancements tempered by financial challenges. The company’s partnerships and program developments offer promising prospects, yet financial constraints and dependence on Neurosterix remain critical factors in its future trajectory.