Addex Therapeutics Ltd. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how Addex Therapeutics performed this year. My goal is to turn complex financial filings into plain English so you can decide if this company fits your investment goals.

1. What does this company do?

Addex Therapeutics is a clinical-stage pharmaceutical company. They discover and develop "allosteric modulators." Traditional drugs bind to the main site of a receptor, but these modulators bind to a different site. This offers a more precise, "fine-tuned" way to treat conditions like epilepsy, dystonia, and substance use disorders.

Because they are still in the clinical stage, they have no products on the market. They don't make money from sales. Instead, they rely on research partnerships and licensing deals with larger drug companies to pay for their expensive research.

2. Major shifts and partnerships

The company is currently restructuring. In 2024, Addex moved its GABAB PAM program and other assets to a new company called Neurosterix. In return, Addex received a 20% stake in Neurosterix and a cash payment. Addex also signed a service agreement to keep using the staff and facilities needed for its own research.

Their progress depends heavily on outside partners:

• Indivior PLC: Addex is working with Indivior on ADX7114 to treat substance use disorders. Addex provides research support, but Indivior controls the strategy and timeline. If Indivior changes its priorities, they could pause or cancel the program, leaving Addex with no control.
• Janssen Pharmaceuticals: This partnership ended in 2025. Janssen returned the rights for the ADX7114 epilepsy program to Addex after it missed development goals. Addex must now find a new partner to fund this work or pay for it themselves.

3. Financial health

Addex is in a tough spot with high spending and little cash.

• The Bottom Line: In 2025, the company lost CHF 6.7 million. In 2024, they reported a CHF 7.1 million profit, but that came from the one-time asset transfer to Neurosterix, not from regular business operations.
• Cash Runway: By the end of 2025, Addex had only CHF 1.6 million in cash. Management expects this money to run out by mid-June 2026.
• The Risk of Issuing More Shares: Because they have no steady income, Addex must raise more money to stay open. They will likely issue more shares to do this, which would dilute your ownership percentage in the company.

4. Key risks

Investing in early-stage biotech is a high-stakes gamble. Beyond the risk that their drugs might fail, consider these points:

• Funding Uncertainty: The company needs more cash to survive. If they cannot raise money by mid-2026, they may have to shut down.
• Regulatory Status: Addex is working to avoid being labeled an "investment company" under U.S. law. If they are reclassified, they would face strict rules that could disrupt their business and increase costs.
• Tax Complexity: For U.S. tax purposes, Addex is a "passive foreign investment company" (PFIC). This can lead to higher taxes and complex reporting for U.S. shareholders. Please talk to a tax professional if you hold these shares.

Final Thought for Investors: The company is at a critical point. With very limited cash and the loss of a major partner, Addex is currently reliant on its ability to secure new funding or partnerships to continue its operations. Before investing, carefully weigh the high risk of potential share dilution and the company's short cash runway against the potential of their drug development pipeline.