Shareholders finally got their chance to register their opinion of Addex's announcement that it is stopping development of its lead drug after registering liver problems in a crucial clinical trial. Trading in the Swiss developer's stock was initially suspended on the announcement, but investors wasted no time in bailing once they got the chance. Addex's shares plunged 75 percent.
"The company's cash position should stay at about 75 million Swiss francs--12.80 per shares--which represents the floor," analysts at Julius Baer said in a note.
After routine monitoring efforts revealed signs of liver problems in the drug group, Addex announced yesterday that it had "terminated development of ADX10059 for chronic indications, including long term treatment of gastroesophageal reflux disease and migraine prophylaxis." Addex execs swiftly pivoted to tout other drug prospects in their pipeline, but investors who were expecting a near-term announcement on a lucrative partnership deal for ADX10059 were in no mood for long-term strategies.
- here's the Reuters piece