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Addex lead drug shows potential in Parkinson's

Published 09/14/2009, 07:52 AM
Updated 09/14/2009, 07:54 AM
MRK
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* Reduced dyskinesia in study with primates

* Shares rise more than 5 percent

ZURICH, Sept 14 (Reuters) - Swiss biotech Addex's lead drug candidate showed potential to treat a complication of Parkinson's disease in a study with non-human primates, news of which boosted the group's shares.

Two different doses of ADX10059 significantly reduced dyskinesia, the sudden, uncontrollable and often chaotic movements of limbs, face, tongue and body that are induced by extended use of standard therapy levodopa.

Addex, which does not yet have a drug on the market, said ADX10059 will soon complete Phase IIb clinical testing in gastroesophageal reflux disease (GERD) and migraine prevention.

"We welcome today's news flow as it provides strong supportive evidence that ADX10059 has the potential to lower side effects from levodopa treatment of mid- to late-stage Parkinson's disease patients," said Olav Zilian, analyst at Swiss brokerage Helvea.

"The development programme on AD10059 is the main driver of our valuation and contributes some 85 percent to our fair value of Addex," said Zilian, who has a "buy" recommendation and price target of 59 Swiss francs on the stock.

Addex shares rose 5.3 percent to 31.95 francs by 1130 GMT, versus a slightly lower overall DJ Stoxx European healthcare index.

The group has two partnering deals with Merck & Co Inc in schizoprenia and Parkinson's disease. A third agreement, with Johnson & Johnson, focuses on developing drugs to treat anxiety and schizophrenia.

A second Swiss biotech company, Santhera, last month struck a deal with Canada's Biovail over a drug to treat dyskinesia in Parkinson's disease. (Reporting by Sam Cage; Editing by Jon Loades-Carter)

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