Addex Therapeutics (ADXN) AI Stock Analysis

• Market Cap: $9.31M
• Dividend Yield: N/A
• Average Volume (3M): 16.10K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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: 0.58
• Enterprise Value/Revenue: 79.32
• Enterprise Value/Gross Profit: -32.14
• Enterprise Value/Ebitda: -0.87
• 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: $7.50 ▼(-8.87% Downside)

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

Low leverage provides durable financial flexibility for a clinical-stage biotech. With very low debt relative to equity, Addex faces reduced refinancing and covenant risk, improving its ability to pursue partnerships or opportunistic financing without the short-term strain higher leverage imposes on R&D timelines.

High-value partner milestones

Large contingent milestone potential from Indivior materially de-risks funding for development if realized. Structural milestone payments can finance late-stage work, validate technology via a partner’s clinical progress, and shift capital needs off Addex’s balance sheet for sustained pipeline advancement.

Pipeline progress and strategic spinouts

Demonstrable advancement in core programs (GABAB PAM, dipraglurant) and strategic investments/spinouts (Neurosterix) indicate multiple development pathways. Such progress and portfolio structuring can sustainably increase partnering prospects and spread scientific risk across programs over the medium term.

Negative Factors

Shrinking revenue trend

A persistent material revenue decline signals difficulty monetizing the platform via collaborations or license income. Over months this reduces internal funding capacity, forces greater reliance on external financing or milestone timing, and weakens the firm’s ability to self-fund multiple programs concurrently.

Negative operating cash flow

Continuous negative operating and free cash flow reflects structural cash burn from R&D without offsetting commercial receipts. This pattern implies repeated financing needs, increases dilution risk for existing shareholders, and constrains the company’s capacity to advance unpartnered programs absent new deals or capital raises.

Insufficient runway for unpartnered programs

With cash only sufficient through mid-2026 for partnered obligations but not for advancing unpartnered assets, the company structurally depends on partnerships or external financing to mature proprietary programs. This creates execution risk: promising assets may stall or require value-dilutive funding to reach clinical proof points.

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

Financial profile is mixed: a strong, low-leverage balance sheet (72) is outweighed by shrinking revenue, very weak TTM profitability (income statement 18), and ongoing negative operating/free cash flow (cash flow 24), indicating continued cash burn and execution risk.

Income Statement

Revenue has been shrinking, including a -26.29% decline in TTM (Trailing-Twelve-Months) and mostly negative growth across recent annual periods. Profitability remains weak: TTM (Trailing-Twelve-Months) shows deeply negative operating and net margins, indicating the cost base is far above the current revenue run-rate. A key positive is that 2024 reported a positive net result and positive net margin, but the operating line stayed loss-making—suggesting the 2024 bottom-line strength was not driven by core operations and did not carry into TTM (Trailing-Twelve-Months).

Balance Sheet

The balance sheet is conservatively levered, with very low debt relative to equity in both TTM (Trailing-Twelve-Months) and 2024, which reduces refinancing risk. Equity levels are also meaningful relative to total assets. The main weakness is shareholder returns: return on equity is volatile and currently negative in TTM (Trailing-Twelve-Months), reflecting ongoing losses and profitability inconsistency despite the improved capital structure versus 2023.

Cash Flow

Cash generation is a clear pressure point: operating cash flow and free cash flow are negative in TTM (Trailing-Twelve-Months) and were also negative in 2024, indicating continued cash burn. TTM (Trailing-Twelve-Months) cash burn improved versus the prior year (positive free cash flow growth), but the business still relies on funding to sustain operations until profitability improves.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADXN, the sentiment is Negative. The current price of 8.23 is above the 20-day moving average (MA) of 8.00, above the 50-day MA of 7.95, and below the 200-day MA of 8.43, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 46.44 is Neutral, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$9.31M	-0.91	-71.27%	―	-72.15%	-223.62%
NCNA	46 Neutral	$10.74M	-0.01	-179.40%	―	―	94.52%
KPRX	44 Neutral	$8.61M	-0.92	-32.58%	―	-100.00%	-463.97%
HCWB	43 Neutral	$3.80M	-0.08	―	―	-87.93%	65.26%
XBIO	42 Neutral	$5.15M	-1.06	-57.43%	―	13.30%	22.70%