Addex Reports 2022 Half Year and Second Quarter Financial Results and Provides Corporate Update
Ad Hoc Announcement Pursuant to Art. 53 LR
Geneva, Switzerland, August 18, 2022 - Addex Therapeutics (SIX and Nasdaq: ADXN), a clinical-stage pharmaceutical company pioneering allosteric modulation-based drug discovery and development, today reported its half-year and second quarter financial results for the periods ended June 30, 2022 and provided a corporate update.
“The recent financing from Armistice Capital and the extension of our strategic collaboration with Indivior have set us on a solid path to execute on our strategic priorities, including pursuing additional collaborations across our portfolio,” said Tim Dyer, CEO of Addex. “In addition, we are looking forward to the data read-out from the ADX71149 epilepsy Phase 2 study in Q1 2023 and continue to evaluate the path forward for dipraglurant in a number of interesting disease areas in parallel to discussions with potential strategic partners.”
H2 2022 Operating Highlights:
Key Financial Data for the Second Quarter and the First Half of 2022:
Income is primarily from our funded research collaboration with Indivior. During the first half of 2022, income decreased by CHF 1.6 million to CHF 0.4 million compared to CHF 2.0 million in the first half of 2021. During the second quarter of 2022, income decreased by CHF 0.9 million to CHF 0.2 million compared to CHF 1.1 million in the second quarter of 2021. The decrease in income from Indivior is a reflection of the positive progression of the collaboration into late stages of clinical candidate selection and the transfer of R&D activities to Indivior and their direct outsourced R&D suppliers.
R&D expenses increased by CHF 3.0 million to CHF 9.5 million in the first half of 2022 compared to CHF 6.5 million in the first half of 2021, and by CHF 2.0 million to CHF 5.7 million in the second quarter of 2022 compared to CHF 3.7 million in the second quarter of 2021. The increase in R&D expenses is primarily related to dipraglurant clinical development activities and, to a lesser extent, R&D costs related to our preclinical portfolio.
G&A expenses increased by CHF 0.6 million to CHF 3.8 million in the first half of 2022 compared to CHF 3.2 million in the first half of 2021, primarily due to increased share-based compensation cost. During the second quarter of 2022, G&A expenses decreased by CHF 0.3 million to CHF 1.5 million compared to CHF 1.8 million in the second quarter of 2021, mainly due to reduced professional fees, which were abnormally high in the second quarter of 2021 due to the setting-up of our US shelf registration and “at-the-market” (ATM) ADS equity sale program.
Our net loss increased by CHF 5.7 million to CHF 13.0 million in the first half of 2022 compared CHF 7.3 million in the first half of 2021 and by CHF 2.5 million to CHF 7.2 million in the second quarter of 2022 compared to CHF 4.7 million in the second quarter of 2021. The increase in our net loss was primarily due to increased R&D expenses combined with reduced income.
Basic and diluted loss per share increased to CHF 0.34 for the first half of 2022, compared to CHF 0.22 for the first half of 2021. For the second quarter of 2022, the basic and diluted loss per share increased to CHF 0.19 compared to CHF 0.14 for the second quarter of 2021.
Cash and cash equivalents amounted to CHF 8.8 million as of June 30, 2022 compared to CHF 18.1 million as of June 30, 2021. The decrease of CHF 9.3 million is primarily due to the cash used in operating activities partially offset by the net proceeds from the equity financing executed on December 16, 2021 and to a lesser extent research funding from Indivior. In July 2022, CHF 4.6 million of additional funds were received through the equity financing with Armistice Capital and the sale of treasury shares resulting in an increased cash balance of CHF 12.0 million at July 31, 2022.
2022 Condensed Consolidated Interim Financial Statements:
Conference Call Details:
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About Addex Therapeutics:
Forward Looking Statements: