Addex Therapeutics (NASDAQ:ADXN) stock is getting a whole lot of attention today. The biopharmaceutical company just released a fresh update on its balance sheet and clinical pipeline. Evidently, traders like what they’re reading; ADXN stock is now more than doubling in price.
Addex Therapeutics isn’t exactly a household name, so here’s a quick primer on the company. Addex develops orally available, “small molecule” drugs for neurological disorders. The company’s lead drug candidate — dipraglurant — is under evaluation for a range of indications.
Meanwhile, Addex’s second clinical program, ADX71149, is being developed in collaboration with Janssen. ADX71149 is in a Phase 2 proof-of-concept clinical trial for the treatment of epilepsy.
So, Addex updated investors on its pipeline and financial guidance. CEO Tim Dyer first said that Addex Therapeutics finished the first half of 2022 with 8.8 million CHF ($9.08 million) in cash and cash equivalents. Thus, it sounds like Addex has a healthy balance sheet for a company of its size.
Should this balance-sheet update be enough, however, to send the ADXN stock price soaring today?
What’s Happening with ADXN Stock?
On a typical day, slightly more than 50,000 shares of ADXN stock trade hands on Wall Street. This morning, the stock’s trading volume has already surpassed 95 million. Moreover, the share price has more than doubled, easily breaking above the $2 mark.
Scouring StockTwits uncovered a lot of celebration among the bulls, but not much in the way of justification for this incredible price action. However, digging into Addex Therapeutics’ clinical update does reveal some key information.
First, Addex Therapeutics has “initiated discussions with potential strategic partners to reinitiate Phase 2 development of dipraglurant” for specified medical indications. Also, ADX71149 “is in a Phase 2 study in epilepsy patients and on track to report data” by the fourth quarter of 2022.
Is ADXN stock moving higher on Addex’s decent cash balance? Or, is the company’s persistence in advancing its drugs enamoring investors? Maybe investors are excited about the company’s upcoming data release for ADX71149?
Possibly, it’s all of the above. In any case, the buyers are definitely in charge today. Investors are casting Addex Therapeutics headfirst into the spotlight, at least for now.
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On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.