Why did ADXN's Q3 earnings fall short of forecasts?

Addex Therapeutics Ltd (ADXN) experienced a notable decline in revenue for the third quarter (Q3) of 2024, raising questions about the factors contributing to this shortfall. Here are key points to consider: 1. **Revenue Shortfall**: Addex Therapeutics reported revenue of CHF 0.1 million for Q3 2024, a significant decrease from the CHF 0.3 million recorded in Q3 2023. This decline is a key indicator of the revenue shortfall. 2. **Strategic Partnerships and Financial Adjustments**: Despite the revenue dip, Addex Therapeutics has been actively pursuing strategic partnerships and financial adjustments. For instance, the company's partnership with Indivior has led to the selection of a compound for development in substance use disorder, with IND-enabling studies already underway. These strategic moves suggest that the revenue shortfall may not be solely attributed to a lack of business development. 3. **Neurosterix Spinout Impact**: The spinout of Neurosterix, a company spun out from Addex Therapeutics, has raised $63 million in funding. While this move may have strengthened Addex Therapeutics' financial position, it also indicates a shift in focus away from certain revenue streams, potentially contributing to the revenue shortfall. In summary, the revenue shortfall in Q3 2024 for Addex Therapeutics can be attributed to a combination of factors, including a decrease in income and strategic shifts such as the Neurosterix spinout.