Addex Therapeutics' FY 2024 Results: A Strategic Shift with Mixed Financials, But Is the Risk Worth It?

Addex Therapeutics, a Swiss biopharma firm specializing in neurology and psychiatry therapies, has reported its full-year 2024 financial results, revealing a company in transition. While its partnership with Neurosterix and strategic repositioning of key assets offer hope, the numbers highlight a precarious balance between bold bets and operational challenges. Let’s unpack the details.

Corporate Highlights: A Focus on Partnerships and Repurposing

The year was marked by two major strategic moves:
1. Neurosterix Launch: A collaboration with Perceptive Advisors raised $65 million in Series A funding to advance preclinical programs, including an M4 PAM for schizophrenia. Addex took a 20% equity stake and received CHF 5 million upfront.
2. Indivior Collaboration Wrap-Up: The completion of its funded research agreement with Indivior led to the selection of GABAB PAM candidates—Indivior’s for substance use disorders (SUD) and Addex’s for chronic cough.

Addex also repositioned its phase 2 mGlu5 NAM asset, dipraglurant, targeting brain injury recovery (post-stroke, TBI), and regained full rights to its phase 2 mGlu2 PAM asset, ADX71149, after its partner abandoned epilepsy trials. These moves signal a pivot toward areas with high unmet need and potential commercial upside.

Financials: A Mixed Bag, Driven by Neurosterix

The numbers paint a complex picture:

• Revenue Dropped: CHF 410k (vs. CHF 1,617k in 2023), as the Indivior research phase ended.
• Costs Reduced: R&D fell 28% to CHF 854k; G&A dropped 14% to CHF 2,311k, aided by lower insurance costs.
• Operating Loss Widened: CHF 2,755k (vs. CHF 2,243k in 2023), due to Neurosterix-related losses.
• Net Loss in Core Operations Rose: CHF 4,909k (vs. CHF 2,500k in 2023), driven by Neurosterix’s CHF 2.177M net loss share.

However, the Neurosterix transaction turned the company’s overall performance around:
- Net Profit Improved Dramatically: CHF 7,056k (vs. a CHF 10.556M loss in 2023), thanks to a CHF 13.9M gain from the Neurosterix sale and other discontinued operations.
- Equity Surge: Shareholders’ equity jumped to CHF 9.677M (vs. CHF 1.145M in 2023), driven by the Neurosterix deal.

Analysis: Betting on Partnerships and Pipeline Repositioning

The results underscore Addex’s reliance on external collaborations and asset repositioning to offset its lack of revenue-generating products. The Neurosterix transaction was a lifeline, boosting equity and net profit—though this gain came from discontinuing certain operations. Meanwhile, continuing operations remain loss-making, signaling that Addex’s future hinges on clinical milestones and partnership successes.

Key risks include:
- Cash Constraints: Cash reserves dipped to CHF 3.34M, barely enough for a year of current burn rates.
- Clinical Uncertainty: Neurosterix’s M4 PAM and Addex’s chronic cough program are still preclinical or in early stages.
- Partnership Dependency: Addex’s pipeline lacks late-stage candidates, making it vulnerable to partner decisions (e.g., Indivior’s focus on SUD).

Conclusion: High Risk, High Reward for Speculative Investors

Addex’s FY 2024 results are a case of “two steps forward, one step back.” The Neurosterix deal provided a critical financial boost and strategic focus on high-potential targets like schizophrenia and brain injury recovery. However, the company’s cash position and reliance on external partnerships remain concerns.

Investors must weigh the upside of breakthrough therapies (e.g., M4 PAM for schizophrenia, a $5B market) against execution risks. With a market cap of ~CHF 40M (as of April 2025), Addex is a speculative play for those betting on its ability to navigate clinical trials and secure partnerships. For now, the stock’s volatility () reflects this high-risk profile.

In short: Addex is a “swing for the fences” bet. If its repositioned assets hit their targets, the payoff could be huge. But without near-term revenue or diversified clinical candidates, it’s a roll of the dice for all but the most aggressive investors.