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Addex Therapeutics, a biopharmaceutical company known for its allosteric modulation-based drug development, has regained compliance with NASDAQ’s $1 per ADS minimum bid price requirement. The company, listed under “ADXN” on both the SIX Swiss Exchange and Nasdaq, achieved this by maintaining a $1.00 per ADS closing bid price for 10 consecutive business days from November 3, 2023.
Earlier this year in May, Addex had received a non-compliance notification from NASDAQ due to its failure to meet the minimum bid price criterion. The recent development marks an important milestone for the company as it continues its work in the field of drug discovery and development.
Addex’s lead drug candidate, ADX71149 (mGlu2 positive allosteric modulator), is currently undergoing Phase 2 trials for epilepsy. Another drug, dipraglurant (mGlu5 negative allosteric modulator), is being evaluated for its potential use in post-stroke recovery.
In addition to these, Addex has licensed its GABAB PAM program to Indivior PLC for the treatment of substance use disorder. The company is also developing other allosteric modulators targeting mild neurocognitive disorders and depression with mGlu2 NAM, chronic cough with GABAB PAM, and stress-related disorders with mGlu7 NAM.
The company has outlined its forward-looking statements and Risk Factors in the Annual Report on Form 20-F as per the Private Securities Litigation Reform Act of 1995.
InvestingPro Insights
In light of the current financial landscape, our InvestingPro data and tips reveal some key insights about Addex Therapeutics (ADXN). Despite regaining compliance with NASDAQ’s minimum bid price requirement, the company shows signs of financial instability.
InvestingPro data indicates that the company has a market cap of $5.25M USD, with a negative P/E ratio of -21.57. Over the last three months, the stock price has fallen significantly, with a total return of -41.77%. This trend continues over six months, with a total return of -57.2%, indicating a volatile market presence.
Our InvestingPro tips highlight that ADXN holds more cash than debt on its balance sheet, but is quickly burning through its cash. This may be due to the company’s struggle with weak gross profit margins and poor returns on assets. Moreover, the stockholders have been receiving poor returns on book equity.
In conclusion, while Addex Therapeutics has made strides in its drug development programs, potential investors should be cautious due to the company’s financial instability. For more detailed tips and data, consider exploring InvestingPro’s comprehensive suite of investment tools.
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