Addex Therapeutics Ltd. (ADXN) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001574232

P/B 132.61

P/E -129.60

P/S 4,984.11

Market Cap 987.71 Mn

ROIC (Qtr) -30.37

Div Yield % 0.00

Rev 1y % (Qtr) -9.68

Total Debt (Qtr) 45,686.25

Debt/Equity (Qtr) 0.01

About

Addex Therapeutics Ltd., a clinical-stage pharmaceutical company based in Switzerland, operates under the ticker symbol ADXN. The company specializes in the development of orally available small molecule drug candidates, with a focus on allosteric modulation. This innovative approach targets specific receptors and proteins in the body, setting Addex apart in the pharmaceutical industry. Addex's primary business activities involve the development of a pipeline of proprietary clinical and preclinical stage drug candidates. These candidates are being...

Addex Therapeutics Ltd., a clinical-stage pharmaceutical company based in Switzerland, operates under the ticker symbol ADXN. The company specializes in the development of orally available small molecule drug candidates, with a focus on allosteric modulation. This innovative approach targets specific receptors and proteins in the body, setting Addex apart in the pharmaceutical industry.

Addex's primary business activities involve the development of a pipeline of proprietary clinical and preclinical stage drug candidates. These candidates are being developed both internally and through partnerships with other companies. Addex's expertise in allosteric modulation has been recognized and validated through its partnerships with Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, and Indivior PLC.

The company generates revenue through the development of these drug candidates. Its primary products include ADX71149, a novel orally active metabotropic glutamate receptor subtype 2 positive allosteric modulator (mGlu2 PAM) for the treatment of epilepsy, and dipraglurant, a selective, orally active small molecule drug product that acts as a metabotropic glutamate receptor subtype 5 negative allosteric modulator (mGlu5 NAM). These products are being developed for various indications, including Parkinson's disease levodopa-induced dyskinesia (PD-LID), post-stroke sensorimotor recovery, substance use disorder, and chronic cough.

Addex's competitive position within the pharmaceutical industry is strengthened by its leadership in allosteric modulation and its strong pipeline of proprietary clinical and preclinical stage drug candidates. The company's key competitors include multinational and specialized pharmaceutical companies developing drugs for similar indications, such as racetams, benzodiazepines, carboxamides, GABA analogs, and perampanel.

In terms of its customers, Addex Therapeutics partners with pharmaceutical companies seeking to develop and commercialize innovative drug products. The company has established partnerships with Janssen Pharmaceuticals, Inc. and Indivior PLC for the development and commercialization of its drug candidates.

Addex Therapeutics' product portfolio includes a range of brand names and trade names. Its lead partnered drug candidate, ADX71149, is a key product, while dipraglurant leads its wholly owned drug candidate portfolio. The company also has a GABAB positive allosteric modulator (PAM) program for the treatment of substance use disorder and chronic cough, licensed to Indivior PLC.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 2.73M provide 288.36x coverage of short-term debt 9481.25, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 9.16M provides 200.57x coverage of total debt 45686.25, indicating robust asset backing and low credit risk.
Long-term investments of 5.53M provide solid 152.63x coverage of long-term debt 36205, indicating strategic financial planning.
Robust tangible asset base of 9.16M provides 6.16x coverage of working capital 1.49M, indicating strong operational backing.
Cash reserves of 2.73M provide solid 12.99x coverage of other non-current liabilities 210480, indicating strong liquidity.

Cons

Operating cash flow of (1.97M) barely covers its investment activities of 55211.25, with a coverage ratio of -35.67, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 55211.25 provide weak support for R&D spending of 855238.75, which is 0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating earnings of (7.62M) show weak coverage of depreciation charges of 37696.25, with a -202.03 ratio indicating high capital intensity and potential reinvestment needs.
Long-term investments of 5.53M represent a high 121.60x of fixed assets 45443.75, indicating potential overexposure to financial assets versus operational capabilities.
High financing cash flow of 1.38M relative to working capital of 1.49M, which is 0.93x suggests concerning dependence on external funding for operational needs.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	107.61	12.31
EV to Cash from Ops.	-500.79	23.25
EV to Debt	21,584.50	738.44
EV to EBIT	-129.48	-9.16
EV to EBITDA	-321.89	6.95
EV to Free Cash Flow [EV/FCF]	-500.79	21.90
EV to Market Cap	1.00	65.67
EV to Revenue	4,976.04	227.32
Price to Book Value [P/B]	132.61	22.34
Price to Earnings [P/E]	-129.60	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	-1,422.20	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	-30.61	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-215.61	-46.93
EBITDA Growth (1y) %	4.40	-1.68
EBIT Growth (1y) %	-215.61	-56.45
EBT Growth (1y) %	-219.86	-12.70
EPS Growth (1y) %	-206.25	-28.31
FCF Growth (1y) %	71.99	-31.90
Gross Profit Growth (1y) %	-70.05	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.03	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.86	3.85
Current Ratio	2.01	7.27
Debt to Equity Ratio	0.01	0.40
Interest Cover Ratio	-1,422.20	841.00
Times Interest Earned	-1,422.20	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-3,824.00	-18,234.31
EBIT Margin %	-3,074.46	-18,580.80
EBT Margin %	-3,845.76	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-3,845.80	-19,439.22

Addex Therapeutics Ltd. (NASDAQ: ADXN)