Revenue: CHF0.1 million in Q3 2024, compared to CHF0.3 million in Q3 2023. R&D Expenses: CHF0.2 million in Q3 2024, decreased by CHF0.3 million from Q3 2023. G&A Expenses: CHF0.5 million in Q3 2024, decreased by CHF5.1 million from Q3 2023. Net Loss from Associates: CHF0.9 million related to investment in Neurosterix Group. Cash Position: CHF3.3 million as of Q3 2024. Current Liabilities: CHF0.9 million as of September 30, 2024, decreased by CHF2 million from December 31, 2023. Non-current Liabilities: CHF0.2 million as of September 30, 2024, decreased by CHF0.4 million from December 31, 2023.

Warning! GuruFocus has detected 6 Warning Signs with ADXN.

Release Date: November 22, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Addex Therapeutics Ltd (NASDAQ:ADXN) has made significant progress in its GABAB positive allosteric modulator program, completing the R&D phase and delivering multiple drug candidates. The partnership with Indivior has led to the selection of a compound for development in substance use disorder, with IND-enabling studies already started. Addex Therapeutics Ltd (NASDAQ:ADXN) is eligible for up to USD330 million in milestone payments and tiered royalties from the partnership with Indivior. The company has selected a compound to advance its independent GABAB PAM program for chronic cough, with promising preclinical data. Neurosterix, a spin-out company, has made excellent progress, starting IND-enabling studies with its M4 PAM program.

Negative Points

Addex Therapeutics Ltd (NASDAQ:ADXN) reported a decrease in income for Q3 2024, recognizing CHF0.1 million compared to CHF0.3 million in Q3 2023. Continuing R&D expenses decreased by CHF0.3 million, indicating a potential slowdown in research activities. The company experienced foreign exchange losses on US dollar cash balances, impacting financial results. There is a risk of dilution for Addex Therapeutics Ltd (NASDAQ:ADXN) in Neurosterix if additional capital is needed for later-stage clinical development. The disappointing results in epilepsy with ADX71149 have led to a repositioning of the dipraglurant development for brain injury recovery.

Q & A Highlights

Q: Could you tell us what would be the next key triggers for the milestones from Indivior? Should we expect any trigger pre-clinical and for the clinical stage? A: Tim Dyer, CEO: We are not at liberty to disclose the details around the milestones, but they are prespecified and include clinical and commercial milestones within the USD330 million. They are roughly split 50-50 between clinical and commercial milestones.

Story Continues

Q: What would be the cash autonomy for Neurosterix, considering the $63 million they have got on inception? A: Tim Dyer, CEO: Neurosterix is capitalized with $63 million in financing. Its cash burn is ramping up as programs move into later stages of preclinical development and then into the clinic. Addex is a passive shareholder and not at liberty to disclose detailed financials of Neurosterix.

Q: Do you see a risk for Addex to be diluted over the coming three, four years in Neurosterix? A: Tim Dyer, CEO: As Neurosterix moves its programs forward, should it need to raise additional capital, Addex would be free to participate in any capital increase. If Addex decides not to participate, it would be diluted. However, with $63 million on Neurosterix's balance sheet, I don't see a dilution risk for Addex in the near future.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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