Addex 2007 Financial Results (PDF)
Addex 2007 résultats financiers (PDF)
Addex Finanzergebnis 2007 (PDF)
Geneva, Switzerland - Allosteric modulation company Addex
Pharmaceuticals (SWX:ADXN) released today 2007 financial results and
reiterated the status of its pipeline.
Financial Highlights
* Net cash received in 2007 of CHF99.1 million
* 2007 operating and capex cash burn excluding IPO proceeds and
related costs: CHF27.7 million
* 31 Dec 2007: Cash and cash equivalents CHF140.0 million
* 21 May 2007: CHF137 million (net proceeds CHF127 million) raised
in IPO on SWX Swiss Exchange
* 3 Dec 2007: $170 million ($3 million upfront) deal for
Parkinson's disease and undisclosed indications
* 3 Jan 2008: $702 million ($22 million upfront) deal for
Schizophrenia and undisclosed indications
* Expected 2008 operating & capex cash burn CHF25-30 million
Tim Dyer, CFO, said: "With CHF140 million in cash and three key
assets in the hands of partners, we are positioned better than ever
before to build a sustainable business. We now have cash to cover
expected operating expenses until at least mid-2011 and reiterate our
guidance for 2008 full year operating cash burn to be in the range of
CHF25-30 million, including capex cash burn in the range of CHF5-7
million. Although year-on-year operating expenses are increasing in
line with our expansion strategy, our 2008 cash burn guidance has
been significantly impacted by a $22 million cash upfront payment
from Merck & Co. received in January."
Key 2007 Financial Data
2007 2006 Change 2H07 2H06 Change
thousands of CHF thousands of CHF
Revenues 643 4,784 -87% 234 2,364 -90%
R&D expenses -27,497 -22,558 22% -14,887 -11,943 25%
G&A expenses -10,768 -3,126 244% -2,831 -1,693 67%
Operating loss -37,622 -20,900 80% -17,484 -11,272 55%
Net financial income 2,536 355 614% 1,897 317 498%
Net loss for the -35,086 -20,545 71% -15,587 -10,955 42%
period
Basic and diluted net -6.99 -7.19 -3% -2.72 -3.55 -23%
loss per share
Net cash received / 99,098 19,276 414% -19,091 30,401 -163%
(cash burn)
Cash and cash 140,045 40,947 242% 140,045 40,947 242%
equivalents
2007 Financial Summary
On 21 May 2007, Addex raised CHF137 million through the issue of
1,875,000 new shares at CHF73 per share in an initial public offering
on the SWX Swiss Exchange. At 31 December 2007, Addex had 5,862,492
registered shares with a nominal value of CHF1 per share which are
listed on the SWX Swiss Exchange under the symbol, ADXN and the free
float was 34%.
After establishing a collaboration to develop positive allosteric
modulators (PAM) of the metabotropic glutamate receptor 4 (mGluR4)
for Parkinson's disease and other undisclosed indications with Merck
& Co., Addex received a $3 million (CHF3.5 million) upfront payment,
which will be recognized over a 24 month period starting December
2007.
After establishing a collaboration to develop mGluR5 PAM for
schizophrenia and other undisclosed indications with Merck & Co.,
Addex received a $22 million (CHF24.8 million) upfront payment, which
will be recognized in January 2008.
To date Addex has received CHF11.1 million from a collaboration on
mGluR2 PAM for anxiety and schizophrenia with Ortho-McNeil, a Johnson
& Johnson company. Further milestones and royalties are undisclosed.
The research phase of the collaboration was concluded in 2007 and
Addex will sit on the oversight committee during future development
of the product(s).
Net cash received in 2007was CHF99.1 million and Addex ended 2007
with CHF140 million in cash and cash equivalents. 2007 operating &
capex cash burn was CHF27.7 million, excluding IPO net proceeds of
CHF137 million and associated costs of CHF10.2 million.
Revenues consist primarily of amounts received from collaboration
partners. Revenues decreased to CHF0.6 million in 2007 from CHF4.8
million in 2006, due primarily to the conclusion of the research
phase of the mGluR2 PAM collaboration with Johnson & Johnson.
Research & Development expenses increased to CHF27.5 million in 2007
from CHF22.6 million in 2006, reflecting the growing headcount and
maturing preclinical and clinical product pipeline.
General and Administration expenses increased to CHF10.8 million in
2007 from CHF3.1 million in 2006, due primarily to IPO related costs
of CHF5.7 million charged to operating expenses. An additional amount
of CHF4.5 million has been charged directly to equity.
Pipeline status review
Addex announced yesterday that it achieved the first preclinical
milestone in its mGluR4 Parkinson's disease deal with Merck & Co.
Addex will receive $250,000 for achieving this milestone. Under the
terms of the agreement, first announced in December 2007, Addex
received $3 million upfront and is eligible for up to $106.5 million
in research, development and regulatory milestones for the first
product developed for multiple indications. Additional milestones of
up to $61 million would be payable if a second and third product is
developed. Addex also is eligible to receive undisclosed royalties on
sales of any products resulting from this collaboration. Merck is
responsible for clinical development.
During 2007, ADX10059, an mGluR5 negative allosteric modulator (NAM),
met the primary endpoint in Phase IIa proof of concept studies in
patients with migraine and gastroesophageal reflux disease (GERD), a
disorder commonly referred to as "heartburn". To date all clinical
testing of ADX10059 was performed using unformulated active
pharmaceutical ingredient. Development of a more commercial type of
formulation began in 2007 and is progressing well. Phase I bridging
studies are expected to report data prior to the start of Phase IIb
testing, currently scheduled to begin in mid-2008.
ADX48621, also an mGluR5 NAM, is undergoing Phase I testing. Addex
reported in 2007 that in the first Phase I trial, the orally
administered product was well tolerated in healthy volunteers. A more
commercial type of formulation of ADX48621 is being prepared and the
Phase I program is scheduled to be completed with the new formulation
late this year. ADX48621, like ADX10059, has potential in multiple
indications, with depression and anxiety being prioritized. ADX48621
also could serve as a backup to ADX10059 in GERD and migraine.
Addex reiterates the statements made less than two months ago, on 3
January 2008, regarding the status of additional preclinical products
in its pipeline. Those statements and supporting documents can be
found at http://www.addexpharma.com/investors/webcasts-downloads/.
About Addex
Addex Pharmaceuticals discovers and develops allosteric modulators,
an emerging class of small molecule therapeutic agents. Allosteric
modulation may offer more sophisticated ways to normalize biological
signaling compared to classical orthosteric agonist or antagonist
drugs. Allosteric, literally translated from its Greek roots, means:
other site. Thus, allosteric modulators bind receptors at sites that
are distinct from the binding sites of classical small molecule
orthosteric agonist and antagonist drugs.
The most advanced drug candidate, ADX10059, a negative allosteric
modulator (NAM) of metabotropic glutamate receptor 5 (mGluR5),
recently demonstrated clinically and statistically significant
efficacy in separate Phase IIa clinical trials in gastroesophageal
reflux disease (GERD) patients and migraine headache patients.
The Addex allosteric modulation discovery and development platform
has been additionally validated through collaborations with Merck &
Co., Inc. and Johnson & Johnson.
Contacts
Chris Maggos
Head of IR & Communications
Addex Pharmaceuticals
+41 22 884 15 11
chris.maggos@addexpharma.com
Disclaimer
The foregoing release contains forward-looking statements that can be
identified by terminology such as "not approvable", "continue",
"believes", "believe", "will", "remained open to exploring", "would",
"could", or similar expressions, or by express or implied discussions
regarding Addex Pharmaceuticals Ltd, its business, the potential
approval of its products by regulatory authorities, or regarding
potential future revenues from such products. Such forward-looking
statements reflect the current views of Addex Pharmaceuticals Ltd
regarding future events, and involve known and unknown risks,
uncertainties and other factors that may cause actual results with
allosteric modulators of mGluR4, mGluR2 or mGluR5 to be materially
different from any future results, performance or achievements
expressed or implied by such statements. There can be no guarantee
that allosteric modulators of mGluR4, mGluR2 or mGluR5 will be
approved for sale in any market or by any regulatory authority. Nor
can there be any guarantee that allosteric modulators of mGluR4,
mGluR2 or mGluR5 will achieve any particular levels of revenue (if
any) in the future. In particular, management's expectations
regarding allosteric modulators of mGluR4, mGluR2 or mGluR5 could be
affected by, among other things, unexpected actions by our partners,
unexpected regulatory actions or delays or government regulation
generally; unexpected clinical trial results, including unexpected
new clinical data and unexpected additional analysis of existing
clinical data; competition in general; government, industry and
general public pricing pressures; the company's ability to obtain or
maintain patent or other proprietary intellectual property
protection. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those anticipated, believed,
estimated or expected. Addex Pharmaceuticals is providing the
information in this press release as of this date and does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.