Addex Therapeutics Reports Narrowed Losses in Q3 Results

Addex Therapeutics Ltd. reported its Q3 earnings, revealing a reduction in net loss compared to last year. The company’s focus on neurological disorders continues with ongoing collaborations aimed at advancing their drug candidates.

Date: 22-11-2024

AI Rating: 5

Addex Therapeutics Ltd. (ADXN) has shared its third-quarter financial results, showing a net loss of 1.53 million Swiss francs, a significant improvement compared to a net loss of 2.62 million francs reported for the same quarter last year. This narrowing of loss indicates a positive trend and could enhance investor sentiment.

In terms of earnings per share (EPS), the company reported a loss per share of 0.02 franc, compared to 0.03 franc from the previous year. This improvement in EPS may be seen as a positive sign, as it suggests a stronger financial position relative to last year despite still being in the negative.

On a continuing operations basis, however, the net loss widened to 1.528 million francs from 711 thousand francs a year ago. This widening loss is primarily attributed to the share of net loss from the Neurosterix Group, which may raise concerns among investors regarding operational efficiency and profitability.

Despite the increase in net loss from continuing operations, the total operating loss narrowed to 622 thousand francs from 749 thousand francs the previous year. This reduction in operating loss is a generally positive indicator showing that the company is managing its operating expenses more effectively.

Income for the quarter saw a significant decline, dropping to 59 thousand francs from 329 thousand francs last year, which could pose a concern about revenue-generating capabilities and market acceptance of their products.

Tim Dyer, the CEO, mentioned the selection of a GABAB PAM drug candidate for substance use disorders and plans to develop a proprietary GABAB PAM drug candidate for chronic cough. The intention to seek partners for funding later clinical development stages may signal strategic growth prospects.

In summary, while Addex has shown improvement in net loss and EPS, concerns remain regarding continuing operations, lower income, and dependency on collaborations. Investors should closely monitor further developments and the progress of their drug candidates.

Stocks: ADXN