Shares of Addex Therapeutics Ltd (NASDAQ: ADXN) saw a significant uptick during the current market session today. As of the latest update, ADXN stock has surged by 40.72%, reaching $10.54 on the US stock charts. This rise follows the announcement of the selection of clinical candidates by the company, in collaboration with Indivior PLC, from their GABAB positive allosteric modulator (PAM) research program.
Milestone Collaboration for Addex in Substance Use Disorder Treatment
Addex and Indivior PLC disclosed that a compound has been selected from their joint research efforts for further development, specifically targeting substance use disorder. Indivior will now assume full responsibility for the future development of this selected compound.
The collaboration marks a significant step forward in addressing the complex challenges of substance use disorders through innovative approaches targeting the GABAB receptor. This receptor, previously addressed by the generic agonist baclofen, holds promise for treating various conditions, though its broader application has been hampered by side effects, rapid clearance, and tolerance development.
Financial and Developmental Benefits for ADXN
Under the agreement, Addex is positioned to receive payments of up to USD 330 million, contingent upon achieving certain regulatory, clinical, and commercial milestones. Additionally, ADXN stands to benefit from tiered royalties on net sales, ranging from high single digits to low double digits. Beyond the financial gains, Addex has also exercised its right to advance its own GABAB PAM program, specifically focusing on the treatment of chronic cough.
Future Prospects and Ongoing Research
The selection of clinical candidates represents the culmination of over five years of dedicated research by Addex, in collaboration with Indivior. Utilizing its industrial-scale allosteric modulator discovery platform, the company successfully identified specific candidates from thousands of compounds.
Moving forward, Addex will continue to focus on its chronic cough program while Indivior advances the substance use disorder candidate. These efforts underscore a continued commitment to developing innovative therapies that address unmet medical needs.
