Addex plunges as it ends Parkinson's disease drug study, suspends guidance
17/06/2022 08:40
** Shares in Addex Therapeutics ADXN.S slump 26%, set for
worst day in over 9 years, after the Swiss pharmaceutical
company terminated a phase 2b/3 study for its experimental
Parkinson's disease drug and suspended its financial guidance
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** The company cites slow recruitment over COVID-19 related
patient concerns about participation in clinical studies as well
as staffing shortages and turnover within study sites as reason
for the termination
** "The negative news significantly impact our investment
case," Baader Helvea says, downgrading the stock to "sell" and
cutting PT by 70% to CHF 0.25
** Analysts note the drug, dipraglurant, was the major value
generator in their forecasts
** The study aimed at evaluating dipraglurant as a potential
treatment for dyskinesia associated with Parkinson's disease
** Zuercher Kantonalbank expects Addex to have cash through
H1 2023, flagging however that the company may be in a critical
situation when it comes to carrying out capital increases
independently from partnerships
(Reporting by Linda Pasquini)
((Linda.pasquini@thomsonreuters.com))