Addex Therapeutics (ADXN) AI Stock Analysis

• Market Cap: $10.11M
• Dividend Yield: N/A
• Average Volume (3M): 16.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -72.15%
• EPS Growth: -223.62%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.01
• Shares Outstanding: 1,822,121
• 10 Day Avg. Volume: 4,441
• 30 Day Avg. Volume: 16,099
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 12.86
• P/FCF Ratio: -0.97
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 72.65
• Enterprise Value/Gross Profit: -29.44
• Enterprise Value/Ebitda: -0.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $8.50 ▲(3.28% Upside)

Overall score is held back primarily by weak operating fundamentals—declining revenue, poor TTM profitability, and negative cash flow—partially offset by a low-debt balance sheet and relatively positive pipeline/partner progress discussed on the latest call. Technical indicators are largely neutral, while valuation remains challenged due to negative earnings and no dividend support.

Positive Factors

Conservative balance sheet

A low-debt capital structure materially reduces refinancing and solvency risk for a clinical-stage biotech. This conservatism preserves strategic optionality to pursue partnerships or licensing deals, limits near-term leverage pressure, and increases resilience during long development timelines.

Material partnership milestone upside

A large, defined milestone pool from Indivior creates potential non-dilutive funding that can materially de-risk development and finance operations if triggers are met. Such structured partner economics strengthen long-term cash conversion potential and de-risk capital needs versus pure equity financing.

Pipeline progression via Neurosterix spin-out

Advancing a spin-out asset into Phase 1 validates the underlying allosteric modulator platform and creates a route to value crystallization separate from Addex. The spin-out reduces Addex's near-term cash burden while preserving upside through equity/royalty stakes, improving portfolio optionality.

Negative Factors

Negative operating cash flow

Sustained negative operating and free cash flow indicate the business burns cash while core operations remain loss-making. Over months this forces reliance on external financing, constrains R&D autonomy, increases dilution risk, and limits ability to self-fund clinical progression for internal programs.

Shrinking revenue and weak profitability

Declining top-line and deeply negative operating/net margins suggest the cost base far exceeds revenue capacity. This limits reinvestment, makes sustained standalone development difficult, reduces bargaining power with partners, and raises persistent execution risk until revenue or margins structurally improve.

Insufficient cash for unpartnered programs

Lack of funding for unpartnered assets forces dependency on licensing/partner deals or new capital raises. This constrains the firm's ability to pursue internal value creation, delays program timelines, and increases exposure to market conditions when seeking additional financing—weakening long-term optionality.

Addex Therapeutics Business Overview & Revenue Model

Company Description

Addex Therapeutics Ltd, a development-stage biopharmaceutical company, discovers, develops, and commercializes small-molecule pharmaceutical products for central nervous system (CNS) disorders in Switzerland. The company focuses on the discovery of oral small molecule allosteric modulators of G-protein coupled receptors. Its lead programs include Dipraglurant for the treatment of Parkinson's disease levodopa-induced dyskinesia, and dystonia; ADX71149 for epilepsy and undisclosed CNS disorders; and GABAB PAM for addiction. It has license and collaboration agreement with Janssen Pharmaceuticals Inc.; Indivior PLC; and The Charcot–Marie–Tooth Association. The company was formerly known as Addex Pharmaceuticals Ltd and changed its name to Addex Therapeutics Ltd in March 2012. Addex Therapeutics Ltd was founded in 2002 and is headquartered in Geneva, Switzerland.

How the Company Makes Money

Addex Therapeutics generates revenue primarily through the development and commercialization of its pharmaceutical products. The company's revenue model includes potential milestone payments from strategic partnerships with larger pharmaceutical companies that may license its drug candidates for further development and marketing. Additionally, Addex may receive royalties on sales of products that are successfully commercialized as a result of these partnerships. The company also engages in research collaborations and grants that can provide funding for its ongoing development programs, contributing to its financial sustainability.

Addex Therapeutics Financial Statement Overview

Summary

Addex Therapeutics faces significant financial challenges, with negative profitability and cash flow issues. The income statement shows consistently negative margins and declining revenue, while cash flow remains negative. The balance sheet is relatively strong with low leverage, but overall financial health is weak.

Income Statement

Addex Therapeutics has faced significant challenges in its income statement, with consistently negative gross profit margins and net income over the years. The company also shows a declining revenue trend, with revenue decreasing from 2020 to 2024. The gross profit margin and net profit margin are negative, indicating that the company is struggling to manage costs relative to its revenue, which is common in early-stage biotechnology companies.

Balance Sheet

The balance sheet reflects a relatively strong equity position with a high equity ratio. The debt-to-equity ratio is low, indicating limited leverage, which is a positive sign of financial stability. However, the company has experienced a decrease in total assets over the years, and stockholders' equity has fluctuated, reflecting volatility in its financial position.

Cash Flow

Addex Therapeutics has experienced persistent negative free cash flow, indicating challenges in generating cash from operations. Although there was a decrease in negative operating cash flow in 2024, the company continues to rely on external financing. The free cash flow to net income ratio is unfavorable, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.61K	404.10K	1.61M	1.42M	2.92M	3.61M
Gross Profit	-166.85K	404.10K	1.61M	1.42M	2.92M	3.61M
EBITDA	-6.17M	-4.65M	-2.19M	-10.45M	-14.94M	-12.41M
Net Income	-6.10M	7.06M	-10.56M	-20.80M	-15.35M	-12.86M
Balance Sheet
Total Assets	7.33M	10.68M	4.64M	8.28M	22.54M	20.18M
Cash, Cash Equivalents and Short-Term Investments	2.19M	3.35M	3.87M	6.96M	20.50M	18.76M
Total Debt	36.55K	41.99K	344.34K	373.13K	482.01K	567.40K
Total Liabilities	1.37M	1.00M	3.50M	3.37M	5.61M	5.57M
Stockholders Equity	5.96M	9.68M	1.15M	4.91M	16.93M	14.61M
Cash Flow
Free Cash Flow	-1.58M	-5.37M	-8.00M	-16.44M	-14.74M	-12.24M
Operating Cash Flow	-1.58M	-5.37M	-7.99M	-16.44M	-14.71M	-12.18M
Investing Cash Flow	-693.19K	4.65M	-6.84K	2.97K	-30.31K	-59.41K
Financing Cash Flow	1.11M	104.92K	5.26M	3.10M	16.40M	46.40K

Addex Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.23
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADXN, the sentiment is Positive. The current price of 8.23 is above the 20-day moving average (MA) of 7.91, above the 50-day MA of 8.18, and below the 200-day MA of 8.38, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADXN.

Addex Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ADXN	51 Neutral	$10.11M	-0.98	-71.27%	―	-72.15%	-223.62%
NCNA	46 Neutral	$14.03M	-0.02	-179.40%	―	―	94.52%
KPRX	44 Neutral	$7.91M	-0.88	-32.58%	―	-100.00%	-463.97%
HCWB	44 Neutral	$3.30M	-0.09	―	―	-87.93%	65.26%
XBIO	42 Neutral	$5.05M	-1.12	-57.43%	―	13.30%	22.70%