The shares of Addex Therapeutics Ltd (NASDAQ: ADXN) are experiencing a notable surge today, with an increase of 20.68% to $15.70 as per the latest check during early hour trading. This upward momentum in ADXN stock follows the unveiling of a new entity.
Addex Therapeutics (ADXN) officially announced the establishment of Neurosterix, an organization dedicated to developing allosteric modulators to treat neurological illnesses (ADXN). Funds affiliated with Perceptive Advisors, a company that specializes in investment management in the bio sciences, have collaborated to enable this project.
Supported by a $63 million initial investment from Perceptive Xontogeny Venture Fund II and additional funding from Perceptive Life Sciences Fund and Acorn Bioventures, Neurosterix plans to purchase a number of preclinical assets and Addex’s allosteric modulator drug discovery technology platform. The purpose of this calculated action is to accelerate the growth of these assets.
In return for their collaboration, Addex will receive CHF5 million in cash and a 20% stake in Neurosterix. Addex will uphold its existing partnerships with Janssen Pharmaceuticals, Inc. and Indivior PLC, in addition to maintaining ownership of clinical stage assets such as dipraglurant for Parkinson’s disease and post-stroke/TBI recovery, as well as their preclinical GABAB positive allosteric modulator (PAM) program for chronic cough.
The establishment of Neurosterix in conjunction with Perceptive signifies a significant endorsement of Addex’s allosteric modulator drug discovery technology platform. Moreover, it provides the necessary resources to expedite the development of critical preclinical assets, including the M4 PAM and mGlu7 negative allosteric modulator (NAM) programs, transitioning them into clinical phases.
This transaction not only substantially reduces Addex’s operational expenses but also injects CHF5 million in cash, thereby extending its financial runway beyond 2026. This financial stability enables ADXN to achieve pivotal milestones within its partnered programs, such as the anticipated Phase 2 epilepsy data from its collaboration with Janssen in the second quarter of 2024, while also securing a promising stake in the future of Neurosterix through its 20% equity interest.
