Addex spin-off launched with USD63 million investment

Addex Therapeutics is a clinical-stage biopharmaceutical company focused on developing a portfolio of novel small molecule allosteric modulators for neurological disorders. Today the company announced that it will contribute a portfolio of preclinical neuroscience assets and its allosteric modulator small molecule discovery technology platform to the newly founded Neurosterix SA, which is like Addex based in Geneva. Addex will retain its partnerships with Janssen Pharmaceuticals, Inc. and Indivior PLC, as well as unpartnered clinical stage assets including dipraglurant for Parkinson’s disease and post-stroke/TBI recovery as well as its preclinical GABAB positive allosteric modulator (PAM) program for chronic cough.

With initial funding of $63 million from Perceptive Xontogeny Venture Fund II, with participation from Perceptive Life Sciences Fund and Acorn Bioventures, Neurosterix will acquire the preclinical assets and the technology platform from Addex. In return, Addex will receive CHF5 million and a 20% equity interest in Neurosterix.

To guide the launch of Neurosterix, Tim Dyer, in addition to his role at Addex, will assume the role of CEO of Neurosterix. Lénaïc Teyssédou, Head of Finance at Addex will join Addex Executive Management. As part of the transaction, Robert Lutjens and Jean-Philippe Rocher are stepping down from Addex Executive Management to focus on their new roles as Co-Heads of Discovery at Neurosterix. Mikhail Kalinichev, Head of Translational Science at Addex, will also join Neurosterix in a similar role and remain a member of the Executive Management of Addex. The Neurosterix R&D leadership team will continue to support Addex through a service arrangement between the two companies.

“The launch of Neurosterix in partnership with Perceptive is an important validation of the Addex allosteric modulator drug discovery technology platform and provides the resources to accelerate development of important preclinical assets, including the M4 PAM and mGlu7 negative allosteric modulator (NAM) programs, into the clinic,” said Tim Dyer, CEO of Addex. “This transaction significantly reduces Addex operating costs and provides CHF5 million of cash thereby extending our cash runway beyond 2026. This allows us to reach important milestones from our partnered programs, including the Phase 2 epilepsy data from our Janssen partnership in the second quarter of 2024 as well as retaining an important upside in the future of Neurosterix through our 20% equity interest.”

Allosteric modulators bind to their target receptor outside of the active site, where the natural ligand and traditional drugs operate. This non-competitive mode of action brings greater selectivity and more precision over the control of biological pathways, potentially delivering improved efficacy and safety. Addex pioneered the development of high-throughput industrial-scale discovery tools for allosteric modulator drug discovery, which have delivered a broad pipeline of oral small molecule drug candidates with the potential to transform the treatment of multiple neurological disorders.

“The team at Addex has established a leading position in allosteric modulator drug discovery at an industrial scale. The assets generated have all been validated at a preclinical level and are ready to quickly move through final stages of preparation for clinical evaluation,” said Fred Callori, Managing Director, Venture at Perceptive Advisors and Chairman of the Board of Neurosterix. “We recognize the untapped value, not only of the assets now being developed within Neurosterix, but also the asset generating capacity of the allosteric modulator drug discovery technology platform, which with the necessary financial resources can potentially deliver transformational medicines and secure the long-term future of the company.”

(Press release / SK)