Addex and Perceptive launch Neurosterix with USD 63 Million investment

Geneva-based Addex Therapeutics and funds affiliated with Perceptive Advisors, an investment management firm focused on the life sciences sector, today announced the launch of Neurosterix to accelerate development of allosteric modulator therapeutics for neurological disorders.

With initial funding of $63 million from Perceptive Xontogeny Venture Fund II, Neurosterix will acquire a portfolio of preclinical assets and the allosteric modulator drug discovery technology platform from Addex and accelerate their development.

In return, Addex will receive CHF5 million and a 20% equity interest in Neurosterix. Addex will retain its partnerships with Janssen Pharmaceuticals, Inc. and Indivior PLC, as well as unpartnered clinical stage assets including dipraglurant for Parkinson’s disease and post-stroke/TBI recovery as well as its preclinical GABAB positive allosteric modulator (PAM) program for chronic cough.

“The launch of Neurosterix in partnership with Perceptive is an important validation of the Addex allosteric modulator drug discovery technology platform and provides the resources to accelerate development of important preclinical assets, including the M4 PAM and mGlu7 negative allosteric modulator (NAM) programs, into the clinic,” said Tim Dyer, CEO of Addex. “This transaction significantly reduces Addex operating costs and provides CHF5 million of cash thereby extending our cash runway beyond 2026. This allows us to reach important milestones from our partnered programs, including the Phase 2 epilepsy data from our Janssen partnership in the second quarter of 2024 as well as retaining an important upside in the future of Neurosterix through our 20% equity interest.”

Allosteric modulators bind to their target receptor outside of the active site, where the natural ligand and traditional drugs operate. This non-competitive mode of action brings greater selectivity and more precision over the control of biological pathways, potentially delivering improved efficacy and safety. Addex pioneered the development of high-throughput industrial-scale discovery tools for allosteric modulator drug discovery, which have delivered a broad pipeline of oral small molecule drug candidates with the potential to transform the treatment of multiple neurological disorders.

“The team at Addex has established a leading position in allosteric modulator drug discovery at an industrial scale. The assets generated have all been validated at a preclinical level and are ready to quickly move through final stages of preparation for clinical evaluation,” said Fred Callori, Managing Director, Venture at Perceptive Advisors and Chairman of the Board of Neurosterix. “We recognise the untapped value, not only of the assets now being developed within Neurosterix, but also the asset generating capacity of the allosteric modulator drug discovery technology platform, which with the necessary financial resources can potentially deliver transformational medicines and secure the long-term future of the company.”

Source: press release