Addex Reports 2019 Half-Year Financial Results and Provides Corporate Update
Geneva, Switzerland, September 30, 2019 – Addex Therapeutics (SIX: ADXN), a leading allosteric modulation-based drug discovery and development company, today reported its half-year financial results for the period ended June 30, 2019 and provided an update on corporate activities.
Corporate Highlights:
- Dipraglurant pivotal phase 2b/3 clinical trial on track to dose first patient in Q1 2020 and readout topline results in Q3 2021
- Indivior funded GABAB PAM research program on track to deliver drug candidates by end of 2020
- Addex led consortium awarded Eurostars grant of €4.85 million to fund discovery of mGlu7 NAM drug candidates for post-traumatic stress disorder
- Completed H1 2019 with a strong liquidity position of CHF36.7 million of cash and cash equivalents
- Started US listing process – registration statement confidentially submitted to the SEC for American Depositary Shares (ADS) representing our ordinary shares
- Continued building our capabilities in Switzerland and US – incorporated Addex Pharmaceuticals Inc. in May 2019
“We have made solid progress executing our strategy to advance our pipeline and expect to dose the first patient in our dipraglurant phase 2b/3 pivotal clinical trial for dyskinesia associated with Parkinson’s disease in Q1 2020,” said Tim Dyer CEO of Addex. “We also recently confidentially submitted a registration statement to the SEC, which in a standard process would put us on a path to become a US listed company by the end of the year.”
Key Half-Year 2019 Financial Data
| CHF’ thousands | H1 2019 | H1 2018 | change |
| Income | 1,227 | 5,368 | (4,141) |
| R&D expenses | (5,894) | (2,084) | (3,810) |
| G&A expenses | (2,821) | (826) | (1,995) |
| Total operating income / (loss) | (7,488) | 2,458 | (9,946) |
| Finance result, net | (53) | (104) | (51) |
| Net income / (loss) for the period | (7,541) | 2,354 | (9,895) |
| Basic net income / (loss) per share | (0.29) | 0.12 | (0.17) |
| Net (decrease) / increase in cash | (4,924) | 40,983 | (45,907) |
| Cash and cash equivalents as of June 30 | 36,748 | 43,574 | (6,826) |
| Shareholders’ equity as of June 30 | 32,273 | 42,274 | (10,001) |
Financial Summary:
Income of CHF1.2 million in the first-half 2019 primarily relates to research funding from Indivior for our research activities on GABAB PAM. The decrease of CHF4.2 million compared to the first-half of 2018 is due to the absence of the USD5.0 million (CHF4.8 million) upfront payment received from Indivior in January 2018.
Research and development (R&D) expenses increased by CHF3.8 million to CHF5.9 million in the first-half 2019 compared to CHF2.1 million in the first-half 2018, primarily due to activities related to our dipraglurant Parkinson’s and GABAB PAM programs.
General and administrative (G&A) expenses increased from CHF0.8 million to CHF2.8 million in the first-half 2019, mainly due to share based compensation costs linked to equity incentive grants made at the end of the first-half 2018 and costs incurred in the first-half of 2019 related to preparing our anticipated listing of ADSs on the Nasdaq Stock Market.
The net loss of CHF7.5 million in the first-half 2019, compared to a net income of CHF2.4 million for the first-half 2018, was due to a combination of increased R&D expenses and decreased income.
Cash and cash equivalents at June 30, 2019 amounted to CHF36.7 million, compared to CHF43.6 million at June 30, 2018. The decrease is primarily due to the cash flows used in operating activities since July 1, 2018.
2019 Condensed Consolidated Interim Financial Statements:
The 2019 condensed consolidated interim financial statements can be found on the Company's website in the section
Conference Call Details:
A conference call will be held today, Monday, September 30, 2019 at 4:00 p.m. CEST / 2:00 p.m GMT / 10:00 a.m ET, to review the financial results and provide a corporate update. Tim Dyer, Chief Executive Officer; Roger Mills, Chief Medical officer; and Robert Lütjens, Co-Head of Discovery (Biology), will deliver a brief presentation followed by a Q&A session.
Joining the Conference Call:
- In the 10 minutes prior to the call start time, call the appropriate participant dial-in number.
Dial-In Numbers:
- Switzerland
- UK
- USA
- Provide the operator with the Participant PIN Code: 31868546#
Joining the Live Event Online:
- In the 10 minutes prior to the call start time, sign in online by following this .
- Password : Welcome
About Addex Therapeutics:
Addex Therapeutics is a clinical-stage pharmaceutical company focused on the development and commercialization of an emerging class of novel orally available small molecule drugs known as allosteric modulators for neurological disorders. Allosteric modulators offer several potential advantages over conventional non-allosteric molecules and may offer an improved therapeutic approach to conventional "orthosteric" small molecule or biological drugs. Addex's allosteric modulator drug discovery platform targets receptors and other proteins that are recognized as essential for therapeutic intervention. Addex's lead drug candidate, dipraglurant (mGlu5 negative allosteric modulator or NAM), has successfully completed a Phase 2a POC in Parkinson's disease levodopa-induced dyskinesia (PD-LID), and is being prepared to enter registration trials for PD-LID. In parallel, dipraglurant's therapeutic use in dystonia is being investigated in preclinical models. Addex's second clinical program, ADX71149 (mGlu2 positive allosteric modulator or PAM) is being developed in collaboration with Janssen Pharmaceuticals, Inc for the treatment of epilepsy. In addition, Addex’s GABAB PAM program has been licensed to Indivior PLC for the treatment of addiction. Preclinical programs include GABAB PAM for CMT1A, mGlu7 NAM for PTSD, mGlu2 NAM for mild neurocognitive disorders, mGlu4 PAM for Parkinson’s disease and mGlu3 PAM for neurodegenerative disorders.
Press Contacts:
| Tim Dyer Chief Executive Officer Telephone: 1 Email: | Mike Sinclair Partner, Halsin Partners +44 (0)20 7318 2955 |
Disclaimer / Forward-looking statements: This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Addex Therapeutics Ltd. and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. This document does not constitute a prospectus according to art. 652a or art. 1156 of the Swiss Code of obligations or art. 27 et seq. of the Swiss Exchange Listing Rules. This publication may contain certain forward-looking statements concerning the Company and its business, including with respect to the potential listing of the Company’s securities in the United States. Such statements involve certain risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of the Company to be materially different from those expressed or implied by such statements; the listing of the Company’s securities in the United States remains subject to approval by regulatory authorities. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. The Company disclaims any obligation to update these forward-looking statements.
