Addex Therapeutics Ltd. (NASDAQ: ADXN)

Sector: Healthcare Industry: Biotechnology CIK: 0001574232
Market Cap 951.13 Mn
P/B 127.70
P/E -124.80
P/S 4,799.51
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 103.62 12.96
EV to Cash from Ops. EV/CFO -482.21 23.73
EV to Debt EV to Debt 20,783.77 772.65
EV to EBIT EV/EBIT -124.68 -11.30
EV to EBITDA EV/EBITDA -309.95 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -482.21 22.12
EV to Market Cap EV to Market Cap 1.00 68.89
EV to Revenue EV/Rev 4,791.45 199.70
Price to Book Value [P/B] P/B 127.70 22.62
Price to Earnings [P/E] P/E -124.80 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) -1,422.20 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -30.61 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -215.61 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 4.40 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -215.61 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -219.86 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -206.25 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 71.99 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -70.05 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.14
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.86 3.79
Current Ratio Curr Ratio (Qtr) 2.01 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.42
Interest Cover Ratio Int Coverage (Qtr) -1,422.20 857.11
Times Interest Earned Times Interest Earned (Qtr) -1,422.20 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,824.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -3,074.46 -18,862.18
EBT Margin % EBT Margin % (Qtr) -3,845.76 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -3,845.80 -19,732.60