Addex Therapeutics' Q4 2024: Navigating Contradictions in Dipraglurant Strategy and Muscarinic M4 Focus

Focus on Dipraglurant's development, strategic focus on muscarinic M4, partnering strategy for Dipraglurant, and strategic focus and product development are the key contradictions discussed in Addex Therapeutics' latest 2024Q4 earnings call.



R&D Program Advancements:
- Addex Therapeutics reported significant progress in its GABAB PAM program, with Indivior selecting a compound for substance use disorders and starting R&D enabling studies.
- This progress is attributed to the completion of the R&D phase, delivering multiple drug candidates, and the strategic partnership with Indivior, which brings significant expertise and resources.

Pipeline Repositioning and Asset Recovery:
- Addex regained the rights to ADX-71149, a Phase 2 asset with a high-value data set and significant materials, after its partner Johnson & Johnson terminated development.
- The company is currently discussing potential development paths for this asset and evaluating its future potential through collaborations and partnerships.

Neurosterix Spin-off and Financing:
- Addex Therapeutics spun off its preclinical portfolio and platform into a new private company, Neurosterix, securing CHF5 million in cash and a 20% equity interest.
- This strategic decision was made to raise capital directly into the new private company, providing Addex shareholders with upside potential without diluting shareholder value.

Financial Performance and Cash Runway:
- Addex ended 2024 with CHF3.3 million in cash, providing a cash runway through mid-2026, despite a decrease in income from CHF1.6 million in 2023 to CHF0.4 million in 2024.
- The decrease in income is primarily due to the completion of the funded research phase of the Indivior collaboration, while the cash runway is supported by the Neurosterix transaction and the reduction in operating costs.