Addex Takes Steps to Rightsize Operations and Position the Company for Future Success
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Geneva, Switzerland, April 13, 2012 - Addex Therapeutics, a leading organization pioneering allosteric modulation-based oral small molecule drug discovery and development, announced today that it has started initiating organizational changes to improve operational efficiency, reduce cost of capital and drive long-term success. Addex will continue to pursue its strategy of building shareholder value through developing its robust in-house pipeline of novel oral small molecule drug candidates through clinical proof of concept and pursuing high value partnerships with larger organizations that are able to offer significant development and marketing capabilities.
Addex recently announced positive top-line results from a Phase 2 clinical trial of its proprietary dipraglurant product in patients with Parkinson's disease levodopa-induced dyskinesia. In addition, Addex' ADX71149 is currently being evaluated in a Phase 2a clinical trial by its partner Janssen Pharmaceuticals Inc. to treat schizophrenia.
Following a careful review of Addex operations over the past several months and industry trends, the management and the board of directors have decided that, in order to ensure the most efficient use of its capital and resources to execute on its robust pipeline and new product opportunities, Addex plans to reduce the size of its operations in Geneva. The changes will ensure that Addex will retain its core competencies and leadership position in allosteric modulator-based discovery and development in-house while accessing non-core activities from external providers.
As part of this new organization, while Addex will move to retain key personnel, the headcount is expected to be reduced by up to 28 people. To this end, a consultation process, required under Swiss law, has been initiated. During the consultation period, which shall last 10 business days, the management will work to determine the specific details of the restructuring. An announcement detailing the new organization and the resulting cost savings will be made thereafter.
"The loss of people's jobs at Addex is something we deeply regret," said Bharatt Chowrira, President & Chief Executive Officer of Addex. "However, we believe it is necessary to improve the operational efficiency and reduce cost structure without harming pipeline execution and innovation. We are implementing these strategic initiatives from a position of strength following our recent positive results in Parkinson's disease levodopa-induced dyskinesia Phase 2 clinical trials. We believe that these measures will position Addex for long-term success and help build significant shareholder value."
Addex is making excellent progress in advancing its proprietary pipeline of novel oral small molecules against a number of validated high-value targets. Near term R&D milestones include:
· The Phase 2a clinical trial data with dipraglurant for the treatment of Parkinson's disease levodopa-induced dyskinesia will be presented in more detail at an international conference later this year; Positive top-line results were announced in March 2012
· Top-line results from the Phase 2a trial with ADX71149 in schizophrenia patients expected in 2H12 from partner Janssen Pharmaceuticals
· IND/CTA filing to initiate clinical trials with GABA-B receptor PAM compound expected in 4Q12
Addex Therapeutics (www.addextherapeutics.com) discovers and develops an emerging class of small molecule drugs, called allosteric modulators, which have the potential to be more specific and confer significant therapeutic advantages over conventional "orthosteric" small molecule or biological drugs. Addex uses its proprietary discovery platform to address receptors and other proteins that are recognized as attractive targets for modulation of important diseases with unmet medical needs. Addex' two lead products are being investigated in Phase 2 clinical testing: dipraglurant (ADX48621, an mGluR5 negative allosteric modulator or NAM) is being developed by Addex to treat Parkinson's disease levodopa-induced dyskinesia (PD-LID); and ADX71149 (mGluR2 positive allosteric modulator or PAM) is being developed by its partner Janssen Pharmaceuticals Inc. to treat schizophrenia. Addex also is advancing several preclinical programs including: GABA-BR PAM for pain, overactive bladder and other disorders; mGluR4 PAM for Parkinson's, anxiety and other diseases; GLP1R PAM for type 2 diabetes; mGluR2 NAM for treating Alzheimer's disease and depression; and FSHR/LHR NAM for sex hormone dependent tumors & reproductive system disorders. In addition, Addex has discovery programs to identify allosteric modulators of: receptor tyrosine kinase (RTK) superfamily, including TrkB PAM for treating neurodegenerative diseases (e.g. Alzheimer's, Parkinson's and Huntington's diseases); and TNF receptor superfamily, including TNFR1 NAM for inflammation (e.g. rheumatoid arthritis) and other diseases.
Tim Dyer
Chief Financial Officer
Addex Therapeutics
+41 22 884 15 61
PR(at)addextherapeutics.com