Addex Therapeutics Ltd. (NASDAQ: ADXN), opened this morning at about 70% after making significant progress in its GABAB positive allosteric moderator research.
According to a press statement on Tuesday, the clinical-stage pharmaceutical firm has selected candidates for PAM research it is undertaking in collaboration Indivior PLC.
The UK-based partner also selected a compound to treat substance use disorders and assumed full responsibility for its future development.
Addex Therapeutics is down over 50% from its April high for the year.
Why is Addex Therapeutics stock important?
Addex could earn tier-based royalties and up to $330M if the collaboration mentioned above achieves certain regulatory, clinical, commercial milestones.
The Swiss firm also exercised its rights to choose a compound for an independent GABAB PAM trial for the treatment chronic cough. Christian Heidbreder, chief scientific officer at Indivior PLC, said:
Although the challenges in this field are complex and difficult to overcome, targeting the GABAB-receptor with positive allosteric moderators could be a new way to develop much needed therapies.
Addex Therapeutics’ stock has experienced a sharp rise, accompanied by a massive increase in the trading volume.
Today, more than 9 million ADXN shares have been traded (at the time of writing), compared to their average daily volume which is only a few thousands. Addex shares are not currently paying dividends.
ADXN recently extended the cash runway beyond 2026
The Indivior announcement came shortly after Janssen Pharmaceuticals – a subsidiary of Johnson & Johnson – ended the development of ADX71149, which is used to treat epilepsy.
Addex Therapeutics reported a net loss of $3.0 millions for the first quarter 2024. It ended with more than $1.6 million cash and equivalents. Tim Dyer, its chief executive, told investors at the time:
We expect to select drug candidates under the agreement signed with Indivior at the end of the second quarter of 2024. This is based on the Neurosterix transaction which extended the cash runway beyond 2026. It will also accelerate the development and portfolio of preclinical programs.
Addex Therapeutics is not widely covered by Wall Street analysts. The analysts who cover it have a consensus rating of “hold”, but their average price targets of over $25 suggest that there is potential for a 100% increase from here.
This post Why Addex Therapeutics stock soared 70% on Tuesday could be modified as new information unfolds
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