GENEVA, Dec. 17, 2014 (GLOBE NEWSWIRE) -- Addex Therapeutics (SIX: ADXN), a leading company pioneering allosteric modulation-based drug discovery and development, announced today that it has received USD757,000 from Janssen Pharmaceuticals Inc., following the amendment of their mGlu2PAM research collaboration and license agreement.
Under the agreement signed between Addex and Janssen in 2004, Addex was required to finance 50% of the cost of all jointly owned patents. Under this amendment, certain jointly owned patents have been assigned to Janssen and all past patent costs paid by Addex have been reimbursed by Janssen to Addex. Going forward, Addex contribution to patent costs has been significantly reduced. This amendment has no impact on Addex right to receive royalties and milestones under the agreement.
"We are delighted to have strengthened our balance sheet through the receipt of USD757,000 and further reduced our operating cash burn through the reduction in future patent costs." said Tim Dyer, CEO at Addex. "We thank Janssen for the collaborative spirit with which they have negotiated this amendment."
About the Addex Janssen License Agreement
On December 31, 2004, Addex entered into a research collaboration and license agreement with Janssen Pharmaceuticals Inc. In accordance with this agreement, Janssen acquired an exclusive worldwide license to develop mGlu2PAM compounds for the treatment of human health. Addex is eligible for up to a total of €112 million in milestone payments based on potential development and regulatory achievements. In addition, Addex is eligible for low double-digit royalties on sales of any mGlu2PAM medication developed under the agreement.
About Addex Therapeutics
Addex Therapeutics (www.addextherapeutics.com) is a discovery and development stage company focused on advancing innovative oral small molecules discovered using its pioneering allosteric modulation-based drug discovery platform. The Company's two lead products are being investigated in Phase 2 clinical testing: dipraglurant (an mGlu5 negative allosteric modulator or NAM) is being developed by Addex to treat Parkinson's disease levodopa-induced dyskinesia (PD-LID) and dystonia; and ADX71149 (mGlu2 positive allosteric modulator or PAM) is being developed in collaboration with Janssen Pharmaceuticals, Inc. Addex also has several preclinical programs including: ADX71441, a GABAB receptor positive allosteric modulator (PAM) for addiction, Charcot-Marie-Tooth (type 1a) disease, spasticity in patients with multiple sclerosis (MS), pain, overactive bladder, autism and other disorders; mGlu4 PAM for MS, Parkinson's disease, anxiety and other diseases; mGlu2 NAM for treatment resistant depression and cognitive deficits; mGlu7 NAM for psychosomatic disorders, TrkB PAM for neurodegenerative disorders; and GLP1 PAM for type 2 diabetes. Allosteric modulators are an emerging class of small molecule drugs which have the potential to be more specific and confer significant therapeutic advantages over conventional "orthosteric" small molecule or biological drugs. The Company uses its proprietary discovery platform to target receptors and other proteins that are recognized as essential for the therapeutic modulation of important diseases with unmet medical needs. The Company is currently focused on preserving the value of its assets, including the intellectual property surrounding its portfolio of allosteric modulator drug candidates and its proprietary allosteric modulator technology platform, while pursuing a strategy to secure the resources necessary to advance the pipeline and maximize value for shareholders. In parallel the Company continues to enter collaborations with academic institutions, government organizations and patient advocacy groups to advance its portfolio of drug candidates for the benefit of patients.
Tim Dyer, Chief Executive Officer
Telephone: +41 22 884 15 61
Disclaimer / Forward-looking statements
This communication does not constitute an offer or invitation to subscribe for or purchase any securities of Addex Therapeutics Ltd. This publication may contain certain forward-looking statements concerning the Company and its business. Such statements involve certain risks, uncertainties and other factors which could cause the actual results, financial condition, performance or achievements of the Company to be materially different from those expressed or implied by such statements. Readers should therefore not place undue reliance on these statements, particularly not in connection with any contract or investment decision. The Company disclaims any obligation to update these forward-looking statements.