Swiss biopharma company launches IPO for CHF155M

IPO launched

Addex Pharmaceuticals has announced that it plans to raise CHF135 million through an initial public offering on the SWX Swiss Exchange.  An extra 15% overallotment option could bring the total amount raised to CHF155 million.

With shares set at CHF58 to CHF75 per share, the base offering of offering is 2,327,586 to 1,800,000 new registered shares, representing 37% to 31%, respectively, of the Company’s issued share capital after the offering. The shares will have a nominal value of CHF 1.00 each. If exercised, the overallotment option could result in the issue of up to 349,138 additional shares, which would bring the offering to 40% of the Company’s issued share capital.

At the middle of the range, the post-money valuation of Addex would be CHF400 million, not including the overallotment. Following the listing, there will be a maximum of 6,315,078 registered shares outstanding or 6,664,216 registered shares if the full overallotment option is exercised.

The IPO will consist of a public offering in Switzerland and private placements to institutional investors in certain other jurisdictions. Bookbuilding will start on May 9 and is expected to end on May 21. The issue price will be announced prior to the start of trading on May 22, 2007. The stock will trade on the main segment of the SWX under the ticker symbol “ADXN”.

Lehman Brothers International (Europe) is acting as Sole Global Coordinator and Bookrunner for the offering. Piper Jaffray is Senior Co-Lead Manager, with Bank Vontobel and Bank am Bellevue acting as Co-Lead Managers.

Addex, which had CHF 34.2 million in cash as of March 31, intends to use the proceeds of the IPO to advance its clinical stage products, scale up its drug discovery efforts and accelerate the ongoing preclinical development of new allosteric modulators. A portion of the proceeds will be used for general corporate purposes.

Addex is a biopharmaceutical company applying technologies in biology and chemistry to develop new drugs that modulate the effect of natural activators on their specific biological targets, in particular G-Protein Coupled Receptors (GPCRs).

G-Protein Coupled Receptors are involved in many normal physiological processes, and also play a central role in the development of many diseases and conditions, including many central nervous system (CNS) disorders as well as gastro-esophageal reflux disease (GERD).

Addex has a unique technological platform that allows it to develop small molecules that modulate (inhibit or increase) the activity of these receptors in response to their natural activators. These molecules have several potential advantages over conventional compounds. Because these small molecule modulators function in a non-competitive manner, they can be effective even in the presence of a high concentration of the normal activator without increasing the dose. This mechanism, combined with high specificity, offers the potential advantage of therapeutic activity with fewer side effects.

The funds will be used in large part to further Addex's R&D activities and advance its portfolio through later stage clinical trials. Three product candidates are already in clinical trials in 5 indications, with two Phase IIa trials already completed, and there is a rich preclinical pipeline. New funds will be needed to assure the continued clinical development in all these areas.

Addex is focused on building a sustainable and profitable pharmaceutical business by using its world-leading expertise in allosteric modulation of GPCR's, concentrating on major indications with substantial unmet medical needs and significant commercial opportunities. Partnerships with large pharma companies that maximise the value of each project are part of our business strategy. With our lead compound ADX10059, we envisage working with an industrial partner starting with Phase III trials. A market launch in all three indications in which it is being developed is planned for 2012.