Addex Therapeutics: Navigating Progress and Challenges in Q3 2024

Addex Therapeutics, a Switzerland-based clinical-stage biopharmaceutical company specializing in novel allosteric modulators for neurological disorders, recently reported its third quarter 2024 financial results and provided a corporate update. The company's strategic focus and promising drug candidates have sparked interest in the industry, but the financial performance has raised concerns among investors. This article examines Addex's Q3 2024 results, the ongoing collaboration with Indivior, and the company's future prospects.

Addex Therapeutics reported a total income of CHF 59,000 in Q3 2024, a significant decrease from CHF 329,000 in the same period last year. The reduction in income can be attributed to the completion of the Indivior collaboration's funded research phase, which led to a 58% year-over-year decrease in R&D expenses to CHF 205,000. However, the company's net loss for the quarter was CHF 1.5 million, down from CHF 2.6 million in Q3 2023. This improvement in the net loss suggests that Addex is navigating the transition effectively, despite the challenges posed by the completion of the funded research phase.

The completion of the Indivior collaboration's funded research phase has allowed both companies to select promising drug candidates for further development. Indivior has chosen a GABA B PAM drug candidate for substance use disorders (SUD), while Addex has selected its proprietary GABA B PAM drug candidate as a potential treatment for chronic cough. This dual-focus strategy enables Addex to diversify its clinical pipeline and tap into broader markets.

In parallel with the Indivior collaboration, Addex is advancing its own GABA B PAM candidate targeting chronic cough and plans to seek partners to support further clinical development. This strategic move will help Addex mitigate financial pressures and foster innovation in its clinical pipeline.

Addex's cash reserves decreased to CHF 3.3 million from CHF 4.7 million year-over-year, primarily due to the completion of the Indivior collaboration's funded research phase and the company's ongoing R&D efforts. Despite the decrease in cash reserves, Addex remains committed to developing its GABA B PAM program and exploring partnership opportunities for expanded financial support.

The sale of part of Addex's business to Neurosterix in April 2024 significantly influenced the company's financial results. The transaction resulted in a net gain of CHF 14.0 million, contributing to a nine-month net profit from discontinued operations of CHF 12.0 million. This strategic move allowed Addex to focus on retaining programs and advancing new therapeutic candidates, such as GABA B PAM for substance use disorders and chronic cough.

In conclusion, Addex Therapeutics' Q3 2024 financial results reflect both challenges and progress in the company's research initiatives. The completion of the Indivior collaboration's funded research phase has led to a reduction in R&D expenses and the selection of promising drug candidates for further development. Despite the decrease in cash reserves and the net loss for the quarter, Addex remains focused on advancing its GABA B PAM program and exploring partnership opportunities for expanded financial support. The company's strategic shift, coupled with the net profit from discontinued operations, mitigates the impact of the company's net loss from continuing operations and enables Addex to maintain a competitive edge in the neurological therapeutics market.