Addex Announces Corporate Reorganization and Restructuring Initiative to Strengthen Its Leadership Position in Allosteric Modulation-Based Drug Discovery and Development
Focus on Core R&D Programs
Goals Include: Increased Operational Efficiency,
Strategic Partnerships with Industry Leaders
Geneva, Switzerland, 7 July 2011 - Allosteric modulation company Addex Pharmaceuticals Ltd (SIX:ADXN) announced today that it is planning organizational changes to strengthen its leadership position in the field of allosteric modulation-based drug discovery and development and continue to deliver shareholder value from a robust clinical and preclinical pipeline. Addex will continue to position itself as a partner of choice for discovery and development of allosteric modulators with leading large pharmaceutical and biotechnology companies while building and advancing a robust pipeline of high-value therapeutic programs.
Following a careful review of Addex operations, the Board of Directors has decided that, in order to ensure the continued development of a robust pipeline through efficient use of its strong balance sheet and capital resources, Addex will strategically focus on changes that prioritize strong management, timely decision-making and efficient use of resources. The company will continue to focus on research and development in its core therapeutic areas – central nervous system, metabolism and inflammation – and maintain its core competencies, including those in preclinical and clinical development.
The company plans to pursue new strategic partnerships with industry leaders on mGluRs, GLP-1 receptor, TNF receptor superfamily, interleukin receptor family and receptor tyrosine kinase superfamily. The three existing drug discovery and development partnerships are currently fully funded by Ortho-McNeil-Janssen Pharmaceuticals Inc. and Merck & Co., Inc., which have assumed full responsibility for further development following successful discovery collaborations. Addex will use its platform technologies for drug discovery and development to continue to build a robust pipeline as well as pursue collaborations on targets specified by potential partners.
As part of the restructuring, the Addex Group's headcount is expected to be reduced by about 25%. To this end, a consultation process, required under Swiss law, has been initiated for the employees of the Swiss entity. During the consultation period, the management will work to determine the specific details of the restructuring. An announcement detailing the new organization and the resulting cost savings will be made thereafter.
"The loss of people's jobs at Addex is something the Board regrets," said André Mueller, executive chairman of Addex. "However, the future of the company is now more secure. We believe Addex is a world class research and development organization capable of delivering on the promise of this exciting technology.”
"Our objective is to realize annual savings of approximately CHF8 million, through improved operational effectiveness, extending the cash reach of the company through end of 2013 and providing a stronger financial base for future success" said Tim Dyer, CFO.
Addex is making excellent progress developing its proprietary pipeline. Two Phase IIa clinical trials are ongoing for two lead products: dipraglurant (ADX48621) and ADX71149. Dipraglurant is an mGluR5 negative allosteric modulator (NAM), which is being tested in Parkinson's disease levodopa-induced dyskinesia (PD-LID). ADX71149, an mGluR2 positive allosteric modulator (PAM), is being tested for treatment of schizophrenia by partner Ortho-McNeil-Janssen Pharmaceuticals Inc. In addition, Merck & Co., Inc., has licensed rights to two preclinical programs: mGluR4 PAM for Parkinson's disease and mGluR5 PAM for schizophrenia. Unpartnered preclinical programs available for out-licensing include: follicle stimulating hormone receptor (FSHR) NAM, with potential for endometriosis and benign prostatic hyperplasia; mGluR2 NAM for Alzheimer's disease; and GABA-BR PAM with potential for chronic pain, Fragile X syndrome, urinary incontinence and gastroesophageal reflux disease; and TrkB PAM for neurodegenerative disorders. Preclinical diabetes and inflammation discovery programs include GLP-1R PAM, IL-1R1 NAM, and TNFR1 NAM.
Addex Pharmaceuticals (www.addexpharma.com) discovers and develops allosteric modulators for human health. The company uses its proprietary small molecule discovery platform to target cell surface receptors that are recognized as having therapeutic potential for treating diseases of the central nervous system, metabolic disorders or inflammation.
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Disclaimer: The foregoing release may contain forward-looking statements that can be identified by terminology such as "not approvable", "continue", "believes", "believe", "will", "remained open to exploring", "would", "could", or similar expressions, or by express or implied discussions regarding Addex Pharmaceuticals Ltd, its business, the potential approval of its products by regulatory authorities, or regarding potential future revenues from such products. Such forward-looking statements reflect the current views of Addex Pharmaceuticals Ltd regarding future events, future economic performance or prospects, and, by their very nature, involve inherent risks and uncertainties, both general and specific, whether known or unknown, and/or any other factor that may materially differ from the plans, objectives, expectations, estimates and intentions expressed or implied in such forward-looking statements. Such may in particular cause actual results with allosteric modulators of mGluR2, mGluR4, mGluR5, mGluR7 or other therapeutic targets to be materially different from any future results, performance or achievements expressed or implied by such statements. There can be no guarantee that allosteric modulators of mGluR2, mGluR4, mGluR5, mGluR7 will be approved for sale in any market or by any regulatory authority. Nor can there be any guarantee that allosteric modulators of mGluR2, mGluR4, mGluR5, mGluR7 or other therapeutic targets will achieve any particular levels of revenue (if any) in the future. In particular, management's expectations regarding allosteric modulators of mGluR2, mGluR4, mGluR5, mGluR7 or other therapeutic targets could be affected by, among other things, unexpected actions by our partners, unexpected regulatory actions or delays or government regulation generally; unexpected clinical trial results, including unexpected new clinical data and unexpected additional analysis of existing clinical data; competition in general; government, industry and general public pricing pressures; the company's ability to obtain or maintain patent or other proprietary intellectual property protection. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. Addex Pharmaceuticals Ltd is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise, except as may be required by applicable laws.