Allosteric modulation company Addex Pharmaceuticals Ltd announced that it raised CHF6 million (US$6 million) through the issuance of 593,567 new registered shares and CHF14 million (US$14 million) through the issuance of zero coupon six-month mandatory convertible notes (MCN) to Biotechnology Value Fund, L.P. and its affiliates (BVF).
"We are proud that such a high caliber life science investor has decided to back our proprietary allosteric modulator platform," said Vincent Mutel, CEO of Addex. "This fund raising affords us the means to advance the high value programs in our pipeline, including products for osteoarthritis pain, endometriosis, Alzheimer's disease, diabetes and inflammatory diseases, in addition to our lead product, ADX48621, for Parkinson's dyskinesia"
Mark Lampert, the founder of BVF, said, "We feel privileged to become a major shareholder of Addex. The company has built an outstanding research engine that can sustainably generate novel, high value drug candidates. Addex represents a classic value investment and BVF's first major Swiss holding. We look forward to helping Addex realize its potential."
"The capital from BVF and the recent award from The Michael J. Fox Foundation for Parkinson's Research significantly strengthen our financial position, providing us with the means to deliver a number of significant value inflection points through early 2013, while simultaneously enhancing our proprietary platform," said Tim Dyer, CFO of Addex.
The transaction was executed on September 14, 2010, after the close of trading on the SIX Swiss Exchange. The transaction was priced at a 12% premium to the volume weighted average price (VWAP) during the five trading days prior to the announcement, corresponding to a price of CHF10.18 per share. The new issued registered common shares will be listed on the SIX Swiss Exchange and their first day of trading will be September 17, 2010. The new shares, with a par value of CHF 1 each, will be issued from the Company's authorized share capital and will represent 9% of the outstanding share capital after the transaction. The terms of the zero coupon six-month mandatory convertible notes (MCN) comprise a fixed conversion price of CHF 10.18 and will convert into 1,371,069 new shares issued from the company's conditional capital on 14 March 2011, representing 17% of the outstanding share capital after conversion. The MCN shall bear no interest and will not be listed. The subscription rights of existing shareholders were excluded in accordance with the Addex Articles of Incorporation.
Addex announced last week that The Michael J. Fox Foundation for Parkinson's Research awarded Addex $900,000 to support a Phase II clinical trial of ADX48621 to treat levodopa-induced dyskinesia in Parkinson's disease patients (PD-LID), which is scheduled to start in the fourth quarter of 2010.
Addex Pharmaceuticals discovers and develops allosteric modulators for human health and is focused on validated therapeutic targets for diseases of the central nervous system, metabolic disorders and inflammation.