Jason McCarthy, an analyst from Maxim Group, maintained the Buy rating on Adial Pharmaceuticals. The associated price target remains the same with $1.50.
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Jason McCarthy has given his Buy rating due to a combination of factors surrounding Adial Pharmaceuticals’ strategic advancements and collaborations. The company is making significant progress towards a Phase 3 study for its AD04 treatment in alcohol use disorder (AUD), following a positive alignment with the FDA. This study will focus on patients identified through a validated genetic test, which is a crucial step forward in targeting the AG+ biomarker-positive population.
Adial’s partnership with Genomind to develop a cheek swab genetic test further strengthens its position, as this test is analytically validated and ready for use in the upcoming study. The collaboration aims to create a companion diagnostic test that could be easily adopted in clinical settings. Additionally, the company’s financial strategy includes a revenue risk adjustment and discounting future cash flows, which reflects a cautious yet optimistic outlook on the potential market for AD04 in both the US and EU by 2030.