Addex's 2010 loss rises as lead product nears Phase IIb
This article was originally published in Scrip
Addex Pharmaceuticals' net loss was lower than analysts' expectations last year as it controlled its R&D and general and administration expenses.
However, the Swiss company's net loss still nearly doubled to CHF42.7 million ($39.7 million) as it moved its lead unpartnered product, ADX48621 for Parkinson's disease levodopa-induced dyskinesia, through development. It hopes to begin a Phase IIb study of the product in the fourth quarter of this year.
Full-year revenues were also down to CHF4.5 million (–83%), due to a one-off upfront CHF24.8 million payment from Merck & Co for the rights to Addex's mGluR5 PAM schizophrenia programme in January 2008.
R&D costs fell by 10% to CHF40 million due to cost control measures that included delaying the advancement of certain preclinical programmes. General and administration costs were up by 1% at CHF7.6 million.
Addex terminated the development of its former lead candidate ADX10059 for chronic migraine and gastro-oesophageal reflux disease at the end of last year. The company's share price subsequently plummeted by nearly two thirds to CHF14.05 and has failed to recover since then. It was trading at CHF12.20 at midday on the Swiss stock exchange on February 23rd.
Despite the failure, Piper Jaffray analysts see potential in Addex's remaining pipeline products, such as ADX71943, which is expected to begin Phase I trials in osteoarthritic pain or chronic pain in the fourth quarter of this year. However, the analysts added that Addex's share price was unlikely to see the benefit of this potential until the company secures at least one more deal.
Addex expects a 2010 cash burn of CHF30-35 million, better than Piper Jaffray's guidance of CHF37.5 million. It had CHF76.6 million at the end of last year, down from CHF119.5 million at the end of 2008. If Addex does not secure any further licensing deals, the money should be enough to fund it until late 2011, which the analysts expect would be sufficient time to deliver data from the Phase IIb study of ADX48621.