Addex Therapeutics Ltd. (ADXN) - Form 20-F Summary
Business Context and Reporting Period
Company: Addex Therapeutics Ltd.
Reporting Period: Fiscal year ended December 31, 2025.
Business Overview: Addex is a clinical-stage biopharmaceutical company focused on developing novel orally available small molecule allosteric modulators for neurological disorders. The company operates with a lean structure following the April 2024 divestment of its drug discovery platform and pre-clinical programs to Neurosterix Group. Addex retains a 20% equity interest in Neurosterix and continues to develop specific programs internally or via partners, including dipraglurant (post-stroke/TBI), ADX71149 (returned from Janssen), and GABAB PAM programs (substance use disorders via Indivior; chronic cough internally).
Key Financial Metrics (Year Ended Dec 31, 2025)
| Metric | 2025 (CHF) | 2024 (CHF) |
|---|---|---|
| Revenue | 30,000 | 404,000 |
| Net Loss (Continuing Ops) | (6,843,000) | (4,909,000) |
| Net Loss (Total) | (6,728,000) | 7,056,000 (Profit) |
| Cash and Cash Equivalents | 1,639,000 | 3,342,000 |
| Operating Cash Flow | (2,171,000) | (2,772,000) |
| Share of Net Loss (Neurosterix) | (4,012,000) | (2,177,000) |
Note: 2024 net profit was driven by a CHF 13.9 million gain from discontinued operations (sale of business to Neurosterix). 2025 results reflect a return to operating losses.
Material Changes vs. Prior Period
- Revenue Decline: Revenue dropped to CHF 30,000 in 2025 from CHF 404,000 in 2024. This decrease is primarily due to the termination of the funded research agreement with Indivior on June 30, 2024.
- Net Loss vs. Profit: The company reported a net loss of CHF 6.7 million in 2025, contrasting with a net profit of CHF 7.1 million in 2024. The 2024 profit was non-recurring, resulting from the sale of the discovery platform to Neurosterix.
- Equity Method Investment Loss: The share of net loss from the 20% equity interest in Neurosterix Group increased to CHF 4.0 million in 2025 from CHF 2.2 million in 2024, reflecting Neurosterix's operational burn rate.
- Cash Position: Cash reserves decreased by approximately CHF 1.7 million year-over-year, reducing the cash runway.
Guidance, Outlook, and Risks
Liquidity and Runway: Management estimates that existing cash and cash equivalents (CHF 1.6 million) are sufficient to fund operating expenses through mid-June 2026. The company explicitly states it will need significant additional capital to continue development activities.
Outlook:
- Dipraglurant: Evaluating for post-stroke/TBI recovery; entered into a collaboration with Sinntaxis AB in April 2025.
- ADX71149: Program returned from Janssen in April 2025 after Phase 2 failure in epilepsy; Addex is evaluating future development.
- GABAB PAM: Indivior completed IND-enabling studies for substance use disorders. Addex is advancing its own independent program for chronic cough, pending funding or a partner.
Key Risks:
- Going Concern: Substantial doubt exists regarding the ability to continue as a going concern without additional financing.
- Internal Controls: Management concluded that internal controls over financial reporting were not effective as of December 31, 2025, due to a material weakness identified regarding accounting treatment compliance with IFRS.
- Partnership Dependence: Heavy reliance on Indivior for the GABAB PAM program and Neurosterix for infrastructure/staff support (provided at zero cost under a service agreement).
- PFIC Status: The company is classified as a Passive Foreign Investment Company (PFIC) for U.S. tax purposes, which may have adverse tax consequences for U.S. holders.
Investor Verification Checklist
- Cash Runway: Verify the accuracy of the "mid-June 2026" liquidity estimate given the current cash balance of CHF 1.6 million and monthly burn rate.
- Financing Plans: Confirm the status of any ongoing or planned equity offerings (e.g., via Kepler Cheuvreux or H.C. Wainwright) to bridge the funding gap.
- Neurosterix Performance: Monitor the financial health and clinical progress of Neurosterix, as Addex's investment value and potential future revenue are tied to its success.
- Internal Control Remediation: Review the specific steps management is taking to remediate the material weakness in internal controls over financial reporting.
- ADX71149 Strategy: Assess the feasibility and cost of Addex independently developing ADX71149 after the Janssen partnership termination.