Addex Pharmaceuticals 2010 Financial Results

Tim Dyer, CFO, said: “2010 has been a year of streamlining the organization and project prioritization resulting in a 22% reduction in our operating loss and a significant reduction in operating cash burn. An extra CHF20 million of new capital from Biotechnology Value Fund has strengthened our balance sheet giving us CHF63.8 million of cash which should see us well into 2013. Cash burn guidance for 2011 is CHF28-32 million.“

Vincent Mutel, CEO, commented: “Even as we re-focus on our core strengths in allosteric discovery and development, our two most advanced products are entering clinical proof of concept studies: ADX48621, now named dipraglurant, for Parkinson’s disease levodopa- induced dyskinesia; and ADX71149 for schizophrenia. Both drug candidates have clinically validated mechanisms and have earned external support. ADX71149 is being developed by our partner Ortho-McNeil-Janssen, a Johnson & Johnson subsidiary. The Michael J. Fox Foundation for Parkinson’s Research awarded Addex a grant for dipraglurant testing.”

Income was CHF4.0 million in 2010 compared to CHF4.5 million in 2009, and comprises mainly fees and research funding received from Merck & Co., Inc. under our mGluR4 PAM license agreement and French government research tax credits.

Research & Development expenses decreased by 22% to CHF31.2 million in 2010 compared to CHF40 million in 2009 primarily due to our lower headcount and clinical development activities.

General and Administration expenses decreased by 15% to CHF6.4 million in 2010 compared to CHF7.6 million in 2009 mainly due to our lower headcount.

Net Loss decreased by 21% to CHF33.6 million for 2010 compared to CHF42.7 million for 2009, mainly due to the significant decrease in our operating expenses.

Cash and cash equivalents amounted to CHF63.8 million at 31 December 2010, compared to CHF76.6 million at the end of 2009. 2010 cash burn of CHF12.8 million is mainly due to the cash used in operations offset by the CHF20 million of gross proceeds from a capital increase and convertible note issuance.

Outlook: Based on current expectations, which include the completion of a substantial part of dipraglurant Phase IIa development and the advancement of our prioritized discovery and preclinical projects, full year cash burn guidance is CHF28-32 million.

Contact
Chris Maggos Business Development & Communication Addex Pharmaceuticals T.: +41 22 884 15 11 E.: chris.maggos(at)addexpharma.com

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