Addex Therapeutics(ADXN) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company recognized CHF0.6 million of income in Q2 2023 compared to CHF0.2 million in Q2 2022, with the primary source being research funding from Indivior [31] - R&D expenses decreased significantly to CHF1.9 million in Q2 2023 from CHF5.8 million in Q2 2022, primarily due to the termination of the PD-LID development [31] - G&A expenses were CHF1.3 million in Q2 2023, down from CHF1.5 million in Q2 2022, driven by reduced D&O insurance costs [31] - The company completed Q2 2023 with CHF7.2 million in cash, indicating a monthly cash burn of well under CHF1 million [44] Business Line Data and Key Metrics Changes - The ADX71149 epilepsy study is progressing well, with Cohort 1 completed and Cohort 2 actively recruiting patients [4][9] - The collaboration with Indivior has received an additional CHF2.7 million in funding, bringing the total to CHF13.8 million, supporting multiple drug candidates [20][40] Market Data and Key Metrics Changes - The epilepsy market is described as a multibillion-dollar opportunity, with significant unmet needs despite existing treatments [11] - There are over 100 million stroke survivors worldwide, with a growing annual rate of 5.7 million, indicating a large market for post-stroke recovery treatments [17] Company Strategy and Development Direction - The company is focusing on advancing its pipeline, particularly in post-stroke recovery and stress-related disorders, while pursuing partnerships for future development [5][17] - The M4 PAM program for schizophrenia is now a priority, with progress towards clinical candidate selection [7][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing stock performance but expressed optimism about ongoing business discussions and potential partnerships that could enhance stock value [33] - The company is guiding that cash reserves will last into 2024, with potential for extension through further cost-cutting measures [44] Other Important Information - The company has made substantial progress in its preclinical pipeline, with multiple candidates advancing towards IND-enabling studies [30] - Significant intellectual property protections are in place for all programs, supporting the company's drug discovery efforts [33] Q&A Session Summary Question: When will top line data from the epilepsy trials be released? - Management indicated that completion is expected by April 2024, but specific data release dates depend on Janssen's progress [36][38] Question: Will a candidate from the Indivior collaboration advance into the clinic? - Management confirmed that multiple drug candidates are being profiled, with a selection expected by the end of the year or early next year [39][40] Question: Any updates on unlocking value from dipraglurant? - Management is evaluating dipraglurant for post-stroke recovery and is in discussions with potential partners for various indications [41][42] Question: What is the cash runway guidance? - Management stated that cash reserves are expected to last into 2024, with ongoing efforts to reduce cash burn [43][44]