Addex Therapeutics raises CHF3.2 million in a Private Placement to International Institutional Investors
Cash runway extended to end of 2014
Geneva, Switzerland, 9 August 2013 – Addex Therapeutics (SIX: ADXN) announced today that it has raised gross proceeds of CHF3.2 million (US$3.5 million) in a private placement of 1,170,612 new issued registered shares to international institutional investors with extensive life science experience. The private placement was strongly supported by existing investors including BVF Partners L.P., which manages the Biotechnology Value Fund, and new investors, including Armistice Capital, which as a result of the placement will hold 5.36% of the issued share capital after the transaction, and EcoR1 Capital. Board Members and Executive Management also participated in the private placement.
“These funds have extended our cash runway through 2014 taking us beyond our next significant clinical event, the reporting of Phase 2 ADX71149 anxious depression data which is expected in the first half of the year,” said Tim Dyer, CEO of Addex. “We continue to explore strategic options to advance our portfolio of proprietary clinical and preclinical allosteric modulators, as well as our allosteric modulator discovery technology platform.”
The new shares were placed at CHF2.75 per share, corresponding to a 5% discount to the volume weighted average price (VWAP) during the five preceding trading days prior to pricing. The 1,170,612 new issued registered shares will be listed on the SIX Swiss Exchange and their first day of trading will be the 9 August 2013. The new shares, with a par value of CHF 1 each, were issued from the Company’s authorized share capital and represent 11.5% of the outstanding share capital after the transaction.
30 June 2013 Financial Update
Addex completed the half year ended 30 June 2013 with cash and cash equivalents of CHF4.5 million. The receipt of net proceeds from the private placement estimated at CHF3.1 million resulted in proforma adjusted cash and cash equivalents of CHF7.6 million.
Addex’ compound, ADX71149, an mGluR2 positive allosteric modulator (PAM) jointly developed in collaboration with Janssen Pharmaceuticals, Inc., is currently in Phase 2 clinical development for schizophrenia and anxious depression and funded entirely by Janssen Pharmaceutica NV. 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 Psychiatric Association, on their Phase 2, first-in-patient, trial investigating ADX71149 as an adjunctive treatment in patients with schizophrenia. 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.
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 (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 also has 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.