UPDATE: H.C. Wainwright Downgrades Addex Therapeutics (ADXN) to Neutral

(Updated - June 23, 2022 6:27 AM EDT)

H.C. Wainwright analyst Raghuram Selvaraju downgraded Addex Therapeutics (NASDAQ: ADXN) from Buy to Neutral.

The analyst comments "Dipraglurant clinical program halted—downgrading to neutral rating without a price target. Last week, Addex announced that it has terminated the Phase 2b/3 study evaluating dipraglurant as a potential treatment for dyskinesia associated with Parkinson’s disease (PD-LID) due to the slow rate of patient recruitment. This has been attributed to the consequences of COVID-19-related patient concerns about participation in clinical studies, as well as staffing shortages and turnover within study sites. Management indicated that the company now plans to focus on advancing its extensive preclinical portfolio towards the clinic and pursuing strategic collaborations for selected programs, while it concurrently focuses on achieving key milestones under its strategic partnership with Indivior. Another strategic partner, Janssen—a division of Johnson & Johnson (JNJ; not rated)—is also slated to deliver data from the Phase 2 study of ADX71149 in epilepsy patients in 4Q22. In light of the termination of the dipraglurant program for PD-LID, Addex is suspending its financial guidance. Because dipraglurant constituted the basis for our original valuation assessment, we are downgrading our rating on the stock to Neutral from Buy without a price target. In our view, this constitutes the most appropriate approach to take until the prospects of other elements of the company's pipeline become clearer."

For an analyst ratings summary and ratings history on Addex Therapeutics click here. For more ratings news on Addex Therapeutics click here.

Shares of Addex Therapeutics closed at $1.11 yesterday.

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