Addex Announces Steps to Capture Potential Upside from its Partnered Asset and Preserve Value for Shareholders
Company intends to restructure the organization and monetize its pipeline and platform assets
Geneva, Switzerland, 28 May 2013 – Addex Therapeutics (SIX: ADXN), announced today that it intends to further reduce its operating costs and workforce to conserve cash while pursuing a potential upside from its partnership with Janssen Pharmaceuticals, Inc. Addex’ compound, ADX71149, an mGluR2 positive allosteric modulator (PAM) jointly developed with Janssen, is currently in clinical development for schizophrenia and anxious depression and funded entirely by Janssen. As part of the reorganization and as required under Swiss law, a consultation process has been initiated. During the consultation period, the Company will investigate a variety of options to determine the optimal organizational structure and resulting operations necessary to execute this strategy. An announcement detailing the changes to the organization and operations will be made shortly thereafter. The Company will continue to seek partners to monetize its pipeline and technology platform assets in order to generate cash.
Addex’ compound, ADX71149, an mGluR2 positive allosteric modulator (PAM) jointly developed in collaboration with Janssen, is currently in clinical development for schizophrenia and anxious depression and funded entirely by Janssen. The schizophrenia and anti-depressant markets represent worldwide sales of approximately $15 billion and $20 billion, respectively. Under terms of the agreement with Janssen, Addex is eligible to receive €109 million in pre-launch milestones for these indications as well as low double-digit royalties on net sales of products arising from the partnership. Recently, Janssen presented data at the 2013 Annual Meeting of the American Psychiatry Association, on their Phase 2, first-in-patient, trial investigating ADX71149 as an adjunctive treatment in patients with schizophrenia. They reported that the data showed that ADX71149 met the primary objectives of safety and tolerability and that ADX71149 demonstrated an effect in patients with residual negative symptoms. The Company will only advance its current clinical programs through partnerships and grants in an effort to extend its runway through the announcement of top-line results from the ongoing development efforts of ADX71149.
About Addex Therapeutics
Addex Therapeutics (www.addextherapeutics.com) is a development stage company focused on advancing innovative oral small molecules against rare diseases utilizing its pioneering allosteric modulation-based drug discovery platform. The Company’s two lead products are being investigated in Phase 2 clinical testing: dipraglurant (dipraglurant, an mGlu5 negative allosteric modulator or NAM) is being developed by Addex to treat Parkinson’s disease levodopa-induced dyskinesia (PD-LID) and rare forms of dystonia; and ADX71149 (mGlu2 positive allosteric modulator or PAM) is being developed in collaboration with Janssen Pharmaceuticals, Inc. to treat both schizophrenia and anxiety as seen in patients suffering from major depressive disorder. Addex is also advancing several preclinical programs including: GABA-BR positive allosteric modulator (PAM) for Charcot-Marie-Tooth (type 1a) disease, spasticity in patients with multiple sclerosis (MS), pain, overactive bladder and other disorders; and mGlu4 PAM for MS, Parkinson’s disease, anxiety and other diseases. Allosteric modulators are an emerging class of small molecule drugs which have the potential to be more specific and confer significant therapeutic advantages over conventional "orthosteric" small molecule or biological drugs. The Company uses its proprietary discovery platform to target receptors and other proteins that are recognized as essential for the therapeutic modulation of important diseases with unmet medical needs.
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Disclaimer: The foregoing release may contain forward-looking statements that can be identified by terminology such as “seek”, “not pursue”, "not approvable", "continue", "believes", "believe", "will", "remained open to exploring", "would", "could", or similar expressions, or by express or implied discussions regarding Addex Therapeutics, formerly known as, Addex Pharmaceuticals, 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 Therapeutics 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, 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 factors may in particular cause actual results with allosteric modulators of mGlu2, mGlu4, mGlu5, GABA-BR 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 Addex Therapeutics will complete the restructuring and reduction of its liabilities or any financing nor that allosteric modulators of mGlu2, mGlu4, mGlu5, GABA-BR or other therapeutics targets will be approved for sale in any market or by any regulatory authority. Nor can there be any guarantee that allosteric modulators of mGlu2, mGlu4, mGlu5, GABA-BR 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 mGlu2, mGlu4, mGlu5, GABA-BR 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 Therapeutics 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.