Addex Therapeutics Launches Neurosterix with $63 Million Series A Funding

Addex Therapeutics, a Swiss biotech firm, has spun off its neuroscience research and allosteric modulator platform into a newly formed company, Neurosterix, buoyed by a $63 million Series A financing round. Neurosterix inherits Addex’s promising muscarinic acetylcholine receptor subtype four positive allosteric modulator (M4 PAM) to treat schizophrenia, which is gearing up for IND-enabling studies. This strategic move allows Neurosterix to capitalize on the burgeoning interest in novel schizophrenia treatments, positioning it alongside companies like Karuna Therapeutics and Cerevel Therapeutics, which have recently achieved significant pharma deals.

Tim Dyer, CEO of Addex, will helm both entities, transferring Addex’s facility and 19-member team to Neurosterix. This initiative is designed to rejuvenate the pipeline and financial prospects of Addex’s innovative but under-capitalized assets by relocating them to a private setting, thus evading the public market’s pressures and fluctuations.

While Addex will retain approximately 20% ownership in Neurosterix, it will also persist in its collaborations on epilepsy and substance use disorders with Johnson & Johnson and Indivior, respectively. Moreover, Addex plans to explore partnerships for other potential applications of its small molecule therapeutics, including treatments for chronic cough and post-stroke recovery.

The formation of Neurosterix, backed by notable investors including Perceptive Xontogeny Venture Fund II, Perceptive Life Sciences Fund, and Acorn Bioventures, underscores a strategic redirection aimed at leveraging and advancing Addex’s notable neuroscience and allosteric modulator platform. This move could potentially lead Neurosterix to emulate the success of its predecessors in schizophrenia treatment and beyond.

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[Source: Endpoints, April 3rd, 2024]