Geneva, Switzerland, 28 September 2018 – Addex Therapeutics (SIX: ADXN), a company pioneering allosteric modulation-based drug discovery and development, reported its half-year financial results for the period ended 30 June 2018 and provided an update on corporate activities.

2018 Half-Year Operating Highlights

  • Signed partnership agreement with Indivior PLC for GABAB PAM program and received USD5.0 million upfront
  • Closed CHF40.4 million capital increase, including US specialist healthcare investors
  • Accelerated clinical team build-out to support dipraglurant US registration studies starting in H2 2019
  • Appointed Jean-Philippe Rocher, PhD, as Co-Head of Discovery (Chemistry)
  • Reported net income of CHF2.4 million
  • Completed first half 2018 with CHF43.6 million in cash and cash equivalents

Key Half-Year 2018 Financial Data

CHF’ thousands H1 2018 H1 2017 change
Income  5,367     227     5,140  
R&D expenses (2,084 ) (1,148 )   936  
G&A expenses  (825 )   (831 )    (6 )
Total operating income / (loss)  2,458   (1,752 )   4,210  
Finance result, net   (104 )   (35 )   69  
Net income / (loss) for the period   2,354   (1,787 )   4,141  
Basic net income / (loss) per share   0.12     (0.14 )   0.26  
Net increase in cash   40,983     2,158    38,825  
Cash and cash equivalents   43,574     3,574    40,000  
Shareholders’ equity   42,274     1,343    40,931  

Financial Summary
Income in the first half 2018 was CHF5.4 million, compared to CHF0.2 million in the first half 2017, and comprised primarily of an upfront payment of USD5.0 million (CHF4.8 million) for the sale of the GABAB PAM license to Indivior PLC as well as grants totalling CHF0.5 million from The Michael J. Fox Foundation for Parkinson’s Research to fund certain research activities in the dipraglurant Parkinson’s program and TrkB PAM program.

Research and development (R&D) expenses increased by CHF0.9 million to CHF2.1 million in the first half 2018, compared to CHF1.2 million in the first half 2017, primarily due to an increase in resources deployed on the dipraglurant Parkinson’s program and outsourced research costs on our TrkB PAM program. R&D expenses consist primarily of costs associated with research, preclinical/clinical testing, related staff and consulting costs. They also include depreciation of laboratory equipment, leasehold improvements, costs of materials used in research, costs associated with renting and operating facilities and equipment, as well as patent costs, other outside service fees and overhead costs. These expenses include costs for proprietary and third party R&D.

General and administrative (G&A) expenses remained stable at CHF0.8 million in the first half 2018 compared to the first half 2017. G&A expenses consisted primarily of staff costs, professional fees for legal, tax and strategic purposes, overheads related to general management, human resources, finance, information technology, business development and communication functions.

The increase of CHF4.2 million from a net loss of CHF1.8 million in the first half of 2017 to a net income of CHF2.4 million in the first half of 2018 is primarily due to the upfront payment recognized under the Indivior partnership agreement.

Cash and cash equivalents at 30 June 2018 amounted to CHF43.6 million, an increase of CHF40 million compared to the CHF3.6 million reported at 30 June 2017. The significant cash increase was primarily due to the proceeds from the capital increase completed on 28 March 2018.

2018 Condensed Consolidated Interim Financial Statements
The 2018 condensed consolidated interim financial statements can be found on the Company's website in the Investor/download section