On Wednesday, H.C. Wainwright maintained a positive stance on Addex Therapeutics (NASDAQ:ADXN) stock, reaffirming a Buy rating with a $30.00 price target. The endorsement follows the announcement that clinical candidates for the GABAB receptor positive allosteric modulators (PAM) research collaboration have been successfully identified.
On Tuesday, Addex Therapeutics disclosed the completion of candidate selection from its GABAB PAM research collaboration. Indivior PLC (LON:INDV), the company's partner in this endeavor, has chosen a compound for future development aimed at treating substance use disorder. Indivior is set to manage all subsequent development stages of the selected compound.
As per the collaboration agreement, Addex Therapeutics is poised to receive up to $330 million based on the attainment of certain regulatory, clinical, and commercial milestones. Additionally, the company is entitled to tiered royalties on net sales of products emerging from the collaboration, ranging from high single-digit to low double-digit percentages.
Furthermore, Addex has exercised its right to select a compound to progress with its independent GABAB PAM program, which targets the treatment of chronic cough. This move underscores the company's commitment to leveraging its expertise in GABAB PAM for therapeutic advancements.
H.C. Wainwright highlighted that the potential financial gains from the successful development of these programs are not yet included in their current valuation of Addex Therapeutics. The firm suggests that any future developments could lead to stock appreciation beyond their current projections, providing a rationale for the reiterated Buy rating and price target.
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