Addex Therapeutics Ltd (NASDAQ: ADXN) opened about 70% up this morning after making significant strides in its GABAB-positive allosteric modulator research.
The clinical-stage pharmaceutical company has selected candidates for the PAM research that it’s undertaking in collaboration with Indivior PLC, as per a press release on Tuesday.
Additionally, its UK-based partner picked a compound for the treatment of substance use disorder and assumed full responsibility of its future development as well.
Despite today’s rally, Addex Therapeutics stock is down more than 50% versus its year-to-date high in April.
Why is it significant for Addex Therapeutics stock?
Addex could earn tiered royalties as well as up to $330 million as long as the aforementioned collaboration successfully achieves a few predetermined regulatory, clinical, and commercial milestones.
The Swiss firm has also exercised its right to pick a compound to proceed with an independent GABAB PAM study for the treatment of chronic cough. According to Christian Heidbreder – the chief scientific officer of Indivior PLC:
While challenges of this field are complex, targeting the GABAB receptor with positive allosteric modulators offers a potential new avenue for developing much needed therapies.
A sharp surge in Addex Therapeutics stock is coupled with a massive increase in trading volume.
More than 9 million shares of the ADXN have exchanged hands today (by the time of writing) versus their average daily volume of a few thousand only. Note that Addex shares do not currently pay a dividend.
ADXN recently extended its cash runway beyond 2026
The Indivior news arrived shortly after Janssen Pharmaceuticals – a subsidiary of Johnson & Johnson ended the development of ADX71149 that is used in the treatment of epilepsy.
In June, Addex Therapeutics reported about $3.0 million in net loss for the first quarter of 2024 it ended with over $1.6 million in cash and equivalents. At the time, Tim Dyer – its chief executive told investors:
Building on Neurosterix transaction, which extended cash runway beyond 2026 and will accelerate the development of a portfolio of preclinical programmes, we anticipate selection of drug candidates under the agreement with Indivior by the end of Q2 of 2024.”
Addex Therapeutics stock is not a very widely covered one among Wall Street analysts. Those who do currently have a consensus “hold” rating on it but their average price target of over $25 suggests potential for a 100% gain from here.
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