Addex Therapeutics Ltd. (ADXN) - 2024 Annual Report (Form 20-F) Summary
Business Context and Reporting Period
Company: Addex Therapeutics Ltd.
Reporting Period: Fiscal year ended December 31, 2024.
Business Overview: Addex is a clinical-stage biopharmaceutical company developing novel small-molecule allosteric modulators for neurological disorders. The company operates with a lean structure following a major strategic restructuring in April 2024.
Key Transaction: On April 2, 2024, Addex divested its allosteric modulator drug discovery platform and pre-clinical programs to a new entity, Neurosterix Pharma Sàrl (Neurosterix). Addex received CHF 5.0 million in cash and a 20% equity interest in Neurosterix US Holdings LLC. Addex retained its partnered programs (Indivior, Janssen) and specific internal assets (dipraglurant, GABAB PAM for chronic cough).
Key Financial Metrics (Year Ended Dec 31, 2024)
| Metric | 2024 (CHF) | 2023 (CHF) |
|---|---|---|
| Revenue | 404,102 | 1,612,953 |
| Net Profit / (Loss) | 7,055,787 | (10,556,227) |
| Net Profit from Discontinued Operations | 11,965,129 | (8,056,074) |
| Net Loss from Continuing Operations | (4,909,342) | (2,500,153) |
| Cash and Cash Equivalents (Dec 31, 2024) | 3,341,738 | 3,865,481 |
| Outstanding Shares | 128,292,969 | 125,195,393 |
Note: The 2024 net profit is primarily driven by a one-time gain of CHF 13.9 million from the Neurosterix divestment. Continuing operations remain loss-making.
Material Changes vs. Prior Period
- Profitability Shift: The company reported a net profit of CHF 7.1 million in 2024, reversing a net loss of CHF 10.6 million in 2023. This reversal is almost entirely attributable to the gain on the sale of discontinued operations (Neurosterix divestment).
- Revenue Decline: Revenue from continuing operations dropped by approximately 75% (from CHF 1.6 million to CHF 0.4 million) due to the termination of the funded research agreement with Indivior on June 30, 2024.
- Cost Structure: Operating costs for continuing operations decreased to CHF 3.2 million in 2024 from CHF 3.9 million in 2023, reflecting the transfer of R&D staff and infrastructure to Neurosterix.
- Investment in Associate: Addex recognized a share of net loss of CHF 2.2 million from its 20% equity interest in Neurosterix Group.
Guidance, Outlook, and Risks
Outlook and Cash Runway: Management estimates that current cash and cash equivalents (CHF 3.3 million) are sufficient to fund operating expenses through mid-June 2026. The company expects to incur significant expenses in the medium to long term to advance its GABAB PAM chronic cough candidate and dipraglurant programs.
Management Commentary:
- Indivior Partnership: Indivior selected a compound for substance use disorder development and completed IND-enabling studies. Addex selected a compound for its independent chronic cough program.
- Janssen Partnership: In April 2025 (post-balance sheet), Janssen terminated the partnership for ADX71149 (epilepsy) after a Phase 2 study failed to meet its primary endpoint. The program and IP were returned to Addex.
- Dipraglurant: Addex entered a collaboration with Sinntaxis AB in April 2025 to evaluate dipraglurant for post-stroke/TBI recovery.
Key Risks:
- Liquidity: Significant additional capital is required to fund development. Failure to raise funds could force delays or discontinuation of programs.
- Development Risk: No products are currently on the market. Success depends on regulatory approval and clinical trial outcomes.
- Internal Controls: Management concluded that internal controls over financial reporting were not effective as of December 31, 2024, due to two material weaknesses related to IFRS compliance regarding the Neurosterix investment.
- 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 Validation: Verify the accuracy of the "mid-June 2026" cash runway estimate given the low cash balance (CHF 3.3M) and ongoing burn rate.
- Continuing Operations Viability: Assess the sustainability of the business model without the Indivior research funding, which previously contributed significantly to revenue.
- Neurosterix Investment: Review the valuation and performance of the 20% equity stake in Neurosterix, which contributed a CHF 2.2M loss in 2024.
- Internal Control Remediation: Monitor the company's progress in remediating the identified material weaknesses in internal controls over financial reporting.
- ADX71149 Future: Evaluate the strategic plan and funding requirements for the ADX71149 program now that it has been returned from Janssen.