Addex Therapeutics Ltd. Q2 FY2026 earnings call

• Strategic Asset Recovery: Regained full rights to the GABA-B PAM program previously licensed to Indivior, including the lead candidate for Substance Use Disorder (SUD) and multiple backup compounds. This provides Addicts Therapeutics with the broadest portfolio of GABA-B PAM candidates in the industry.
• Pipeline Progress - SUD & Chronic Cough: The SUD candidate has completed IND-enabling studies and is ready for IND filing and Phase 1 trials. For Chronic Cough, a distinct clinical candidate (Compound A) showed robust efficacy in guinea pig and non-human primate models with a favorable safety profile (no sedation/respiratory depression). IND enabling studies are planned pending financing.
• NeuroSterics Spin-out Update: The spin-out company continues to advance its pipeline. Lead candidate NTX253 (M4 PAM for schizophrenia) is expected to complete Phase 1 data in Q4 2026. Backup M4 PAM NTX529 is selected for IND enabling studies. MGLAR7 NAM program NTX819 is also advancing through IND enabling studies.
• Other Pipeline Activities: Diproglurant (mGluR5 NAM) is being repositioned for brain injury recovery; preclinical profiling is ongoing with Syntaxis and Lund University. ADX 71149 (regained from J&J) is being evaluated for new indications and potential partnerships.
• Financial Health: Strengthened balance sheet with $2.8 million raised in Q3 via ATM. Cash runway extended to Q4 2027. Reduced operating losses due to lower outsourced R&D expenses.

The company does not report traditional product segment revenue as it is a pre-clinical/early clinical biopharmaceutical firm with no commercial sales. Financial performance is summarized by operating metrics: Operating loss was $1.1 million in H1 2026, a decrease from $1.3 million in H1 2025, primarily due to reduced outsourced R&D costs for the GABA-B PAM program. Net loss remained stable at approximately $3.4 million for both periods. The balance sheet held $0.8 million in cash as of June 30, 2026 (down from $1.6 million in Dec 2025), but secured an additional $2.8 million via ATM facility in Q3, extending cash runway into Q4 2027. The company holds a 20% equity stake in NeuroSterics, accounting for a $2.3 million share of their net loss in H1 2026.

• Cash Runway: Management confirmed that recent fundraising extends the company's cash runway into the fourth quarter of 2027.
• Clinical Milestones: Expects NeuroSterics' NTX253 to complete Phase 1 data in Q4 2026.
• Development Timeline: Plans to file IND for the SUD program shortly. IND enabling studies for the Chronic Cough program are planned to start subject to securing financing.
• No Revenue Guidance: As a development-stage company, no specific revenue or profit guidance is provided.

• Financing Dependency: Advancement of the Chronic Cough IND enabling studies is explicitly contingent on securing additional financing.
• Operational Risks: Continued reliance on outsourced R&D partners and clinical trial execution carries risks of delays or cost overruns.
• Market Perception Risk: CEO noted that the value of the 20% stake in NeuroSterics is 'unfortunately not being properly reflected in our current share price,' suggesting potential market mispricing risk.
• Regulatory/Clinical Failure: Early-stage assets (SUD, Cough, Brain Injury) carry high risk of failure in clinical trials despite promising preclinical data.

Q: Analyst asked about the patent expiration timeline for the GABA-B PAM compounds regained from Indivior and whether the company would consider spinning off this portfolio like NeuroSterics. / A: CEO stated patents filed in 2024 will likely expire around 2044. All five patents were NCE patents managed by Addicts, not joint ventures. Regarding strategy, CEO explained they have diverse candidates ranging from central to peripheral. While they have experience with the NeuroSterics spin-out, the immediate plan is to pursue licensing/partnership discussions for these assets rather than spinning them out immediately, given the therapeutic margin challenges with Baclofen-like compounds.