Why Did HC Wainwright Downgrade Addex Therapeutics

Last week, Addex Therapeutics Ltd ADXN terminated the Phase 2b/3 study evaluating dipraglurant as a potential treatment for dyskinesia associated with Parkinson's disease (PD-LID) due to the slow rate of patient recruitment.
Addex is suspending its financial guidance. Hence HC Wainwright downgraded its rating to Neutral from Buy without a price target, as dipraglurant constituted the basis for its original valuation assessment.
Management indicated that the company now plans to focus on advancing its extensive preclinical portfolio towards the clinic and pursuing strategic collaborations for selected programs. In contrast, it concurrently focuses on achieving key milestones under its strategic partnership with Indivior.
Collaborating partner Janssen, a unit of Johnson & Johnson JNJ, is expected to deliver data from the Phase 2 study of ADX71149 in epilepsy patients in 4Q22.
The analyst views this as the most appropriate approach until the prospects of other elements of the company's pipeline become clearer.
Price Action: ADXN shares are up 3.90% at $1.15 during the market session on the last check Thursday.