Baader cuts Addex Therapeutics on higher cash burn from trial delays
06/05/2022 11:09
** Baader Helvea cuts Swiss pharmaceutical company Addex
Therapeutics ADXN.S to "add" from "buy", citing higher cash
burn related to an increase in R&D expenses from delays in
ongoing clinical studies
** The broker points to delays in a phase 2b/3 dipraglurant
study in dyskinesia associated with Parkinson's disease and
Janssen-led ADX71149 phase 2 study in epilepsy urn:newsml:reuters.com:*:nGNE4n4GJT
** "With only CHF 15mn in the balance sheet, Addex needs to
secure funds before year-end 2022," the brokerage says
** Baader says the 2a phase study of dipraglurant in people
suffering from blepharospasm, with data expected in Q2 2022,
could be a turning point for the company, as positive data can
create momentum for the stock
** However, negative results might amplify losses and
jeopardise the company's future, the broker warns
** Overall, Baader adopts a conservative stance due to
uncertainties associated with liquidity and clinical timelines
(Reporting by Anastasiia Kozlova)
((anastasiia.kozlova@thomsonreuters.com))