| Addex Therapeutics (SIX/NASDAQ: ADXN), a clinical-stage biopharmaceutical company focused on developing a portfolio of novel small molecule allosteric modulators for neurological disorders, today reported its third quarter financial results for the periods ended September 30, 2024, and provided a corporate update. |
| “During the third quarter of 2024, Indivior selected a GABAB PAM drug candidate from our collaboration for development in substance use disorders, allowing us to select our proprietary GABAB PAM drug candidate as a potential treatment for chronic cough. While we intend to further advance this new program in-house, we will also look for partners to fund the later clinical development stages of the program,” said Tim Dyer CEO of Addex. |
| Q3 2024 Operating Highlights: |
- Completed funded research phase of the Indivior collaboration with both Indivior and Addex each selecting GABAB PAM drug candidate for further development in SUD and chronic cough, respectively
|
- Completed Q3 2024 with cash and cash equivalents of CHF3.3 million
|
| Key Financial Data for the three-months and nine-months ended September 30, 2024: |
| CHF’ thousands |
Q3 24 |
Q3 23* |
Change |
YTD 24 |
YTD 23* |
Change |
| Income |
59 |
329 |
(270) |
408 |
1,464 |
(1,056) |
| R&D expenses |
(205) |
(490) |
285 |
(789) |
(1,038) |
249 |
| G&A expenses |
(476) |
(588) |
112 |
(1,929) |
(1,939) |
10 |
| Total operating loss |
(622) |
(749) |
127 |
(2,310) |
(1,513) |
(797) |
| Finance result, net |
(31) |
38 |
(69) |
(4) |
(89) |
85 |
| Share of net loss of associates |
(875) |
- |
(875) |
(1,405) |
- |
(1,406) |
| Net loss from continuing operations |
(1,528) |
(711) |
(817) |
(3,719) |
(1,602) |
(2,117) |
| Net profit / (loss) from discontinued operations |
(2) |
(1,906) |
1,904 |
11,981 |
(6,097) |
18,078 |
| Net profit / (loss) for the period |
(1,530) |
(2,617) |
1,087 |
8,262 |
(7,699) |
15,961 |
| Basic net profit / (loss) per share |
(0.02) |
(0.03) |
0.01 |
0.08 |
(0.11) |
0.19 |
| Diluted net profit / (loss) per share |
(0.02) |
(0.03) |
0.01 |
0.05 |
(0.11) |
0.16 |
| Net increase / (decrease) in cash and cash equivalents |
(439) |
(2,415) |
1,976 |
(516) |
(2,203) |
1,687 |
| Cash and cash equivalents as of September 30 |
3,349 |
4,754 |
(1,405) |
3,349 |
4,754 |
(1,405) |
| Shareholders’ equity as of September 30 |
11,062 |
3,944 |
7,118 |
11,062 |
3,944 |
7,118 |
*Thecomparative information has been re-presented due to discontinued operations that have been reclassed to the financial line called “Net profit or loss from discontinued operations” following the Neurosterix transaction. |
| Financial Summary: |
| Under IFRS, the sale of our allosteric modulator drug discovery platform and unpartnered preclinical portfolio to Neurosterix on April 2, 2024, required the identification of continuing operations related to retained programs by the Group and discontinued operations, including the net gain from the sale of a part of our business and discontinued operating activities related to income and expenses of divested activities by the Group during the nine-month and three-month periods ended September 30, 2024 and 2023, respectively. The net gain from the sale of a part of our business, the income and expenses from discontinued operating activities have been reclassed to the financial line called “Net profit or loss from discontinued operations.” |
| During the nine months ended September 30, 2024, net profit from discontinued operations amounted to CHF 12.0 million and was primarily related to the net gain of CHF 14.0 million from the sale of part of our business, partially offset by the net loss of CHF 2.0 million from discontinued operating activities. During the same period ended September 30, 2023, the Group incurred a net loss from discontinued operations of CHF 6.1 million. |
| During the nine months ended September 30, 2024, net profit amounted to CHF 8.3 million, primarily related to the net profit from discontinued operations of CHF 12.0 million partially offset by the net loss from continuing operations of CHF 3.7 million. During the same period that ended September 30, 2023, the Group incurred a net loss of CHF 7.7 million of which CHF 6.1 million was related to operating discontinued activities. |
| During the third quarter of 2024, the Group incurred a net loss of CHF 1.5 million compared to a net loss of CHF 2.6 million in the third quarter of 2023. The decrease of CHF 1.1 million is primarily due to the sale of part of our business whose related operating activities of CHF 1.9 million incurred in the third quarter of 2023 were partially offset by the share of the net loss of Neurosterix’s Group amounting to CHF 0.9 million in the third quarter of 2024. |
| Diluted net gain per share amounted to CHF 0.05 for the nine months ended September 30, 2024, compared to a diluted net loss per share of CHF 0.11 for the same period ended September 30, 2023. |
| Cash and cash equivalents decreased to CHF 3.3 million on September 30, 2024, compared to CHF 4.7 million on September 30, 2023. The decrease of CHF 1.4 million between September 30, 2024, and September 30, 2023, is primarily due to the cash used in operating activities, partially offset by gross proceeds of CHF 5.0 million from the Neurosterix Transaction received in April 2024. |
| All financial variances described below relate to continuing operations: |
| Income is primarily driven by amounts received under our funded research collaboration with Indivior, recognized as related costs incurred. During the nine months ended September 30, 2024, income decreased by CHF 1.1 million to CHF 0.4 million compared to CHF 1.5 million for the same period ended September 30, 2023, primarily due to the completion of the research agreement on June 30, 2024. On August 27, 2024, Indivior selected a compound for future development in substance use disorder and undertakes all future development of its selected compound. During the third quarter of 2024, income decreased by CHF 0.2 million to CHF 0.1 million compared to CHF 0.3 million in the third quarter of 2023. |
| R&D expenses primarily relate to our GABAB PAM program and decreased by CHF 0.2 million to CHF 0.8 million during the nine months ended September 30, 2024, compared to CHF 1.0 million during the same period ended September 30, 2023, primarily due to the completion of the research agreement with Indivior on June 30, 2024. R&D expenses decreased by CHF 0.3 million to CHF 0.2 million during the third quarter of 2024 compared to CHF 0.5 million in the third quarter of 2023. |
| G&A expenses remain stable at around CHF 1.9 million for both the nine months ending September 30, 2024 and 2023. G&A expenses decreased by CHF 0.1 million to CHF 0.5 million during the third quarter of 2024 compared to CHF 0.6 million in the third quarter of 2023, primarily due to reduced D&O insurance costs. |
| The net loss from continuing operations increased by CHF 2.1 million to CHF 3.7 million for the nine months ended September 30, 2024, compared to CHF 1.6 million during the same period ended September 30, 2023, primarily due to reduced revenue and increased costs related to the share of the net loss of the Neurosterix Group. The net loss from continuing operations increased by CHF 0.8 million to CHF 1.5 million in the third quarter of 2024 compared to CHF 0.7 million in the third quarter of 2023 primarily due to the share of the net loss of the Neurosterix Group. |
| Q3 2024 Consolidated Financial Statements: |
| The Q3 2024 financial report can be found on the Company’s website in the investor/download section here. |
| For the full document click the link below: |
| Addex Therapeutics |
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