Addex slashes staff, extends cash reach through 2013

There are more big changes afoot for Switzerland's Addex Pharmaceuticals ($ADXN). Just days since CEO Vincent Mutel abruptly departed the scene, the company is axing 25% of its workforce in a restructuring.

Addex, which has struck some high-profile partnerships with Merck and J&J in the past, has had to deal with the painful loss of its lead therapy at the end of 2009, when safety issues scuttled the program and triggered a meltdown in its share price.

"The loss of people's jobs at Addex is something the board regrets," said André Mueller, executive chairman of Addex. "However, the future of the company is now more secure. We believe Addex is a world class research and development organization capable of delivering on the promise of this exciting technology." CFO Tom Dyer added that "our objective is to realize annual savings of approximately CHF8 million, through improved operational effectiveness, extending the cash reach of the company through end of 2013 and providing a stronger financial base for future success."

Addex is hoping to strike more development deals for its platform technology centering on allosteric modulation-based discovery work. There are two Phase IIa clinical trials underway for dipraglurant (ADX48621)--for Parkinson's disease levodopa-induced dyskinesia--and ADX71149, a schizophrenia drug.

- here's the Addex release