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Adial Pharma (ADIL)
:ADIL
US Market

Adial Pharmaceuticals (ADIL) AI Stock Analysis

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Adial Pharmaceuticals

(NASDAQ:ADIL)

Rating:32Underperform
Price Target:
Adial Pharmaceuticals' overall stock score is low due to ongoing financial struggles, including a lack of revenue and reliance on external funding. Technical analysis provides no strong directional signal, and valuation metrics are weak due to negative earnings. However, the recent FDA approval for AD04 offers a positive strategic outlook, but this is not enough to counteract the financial and operational challenges currently faced.
Positive Factors
Leadership
New leadership appointment with Vinay Shah as the company's CFO brings over 25 years of experience in the pharmaceutical, biopharmaceutical, and healthcare sectors, specializing in financial strategy.
Regulatory Approval
Adial announced positive top-line results from its pharmacokinetics (PK) study of AD04, which confirmed the relative bioavailability to marketed ondansetron and no food effects.
Regulatory Feedback
Adial announced the positive feedback it received from US and EU regulators around its AD04 program, following regulatory meetings.
Negative Factors
Financial Overhang
Additional capital is required to advance this program and as such, a Hold rating is maintained as the company works to resolve its financial overhang.
Financial Performance
Adial filed its 10-Q, reporting 3Q24 results with a net loss of ($2.2M) and ended the period with $5.2M in cash on the balance sheet.

Adial Pharmaceuticals (ADIL) vs. SPDR S&P 500 ETF (SPY)

Adial Pharmaceuticals Business Overview & Revenue Model

Company DescriptionAdial Pharmaceuticals (ADIL) is a clinical-stage biopharmaceutical company specializing in developing therapeutic treatments for addiction and related disorders. Headquartered in the United States, the company's core product focuses on a genetically targeted medication designed to combat alcohol use disorder (AUD). Adial leverages its expertise in genetics and addiction treatment to develop innovative solutions aimed at improving patient outcomes in the field of addiction medicine.
How the Company Makes MoneyAdial Pharmaceuticals generates revenue primarily through the development and potential commercialization of its lead product candidate, AD04, which is targeted at treating alcohol use disorder. The company aims to make money by obtaining regulatory approval for AD04 and then marketing it to healthcare providers and patients. Additionally, Adial may engage in strategic partnerships, licensing agreements, or collaborations with other pharmaceutical companies to enhance its market reach and share in the profits derived from sales of its products. Revenue streams may also include upfront payments, milestone payments, and royalties from these partnerships, but as a clinical-stage company, its earnings are contingent on successful product development and commercialization efforts.

Adial Pharmaceuticals Financial Statement Overview

Summary
Adial Pharmaceuticals faces significant financial challenges with zero revenue generation, persistent net losses, and negative cash flows. Despite a strong equity base and no debt, the company's reliance on external financing and operational inefficiencies are concerning.
Income Statement
5
Very Negative
Adial Pharmaceuticals shows a consistent lack of revenue generation, with zero total revenue over the years. The company continues to report significant net losses, indicating ongoing financial challenges. EBIT and EBITDA are negative, showing operational inefficiencies and challenges in covering operational costs.
Balance Sheet
30
Negative
The company maintains a strong equity position with zero debt, resulting in a favorable debt-to-equity ratio. However, the continuous net losses have impacted stockholders' equity negatively over time. The equity ratio is relatively strong, suggesting some financial stability despite operational losses.
Cash Flow
25
Negative
Operating cash flow remains negative, indicating challenges in generating cash from core operations. Free cash flow is also negative, reflecting the company's reliance on external financing to sustain operations. Financing cash flow is positive, showing dependence on external funding sources.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.000.000.000.000.000.00
Gross Profit-141.000.00-564.00-60.50K-55.11K-564.00
EBITDA-8.71M-13.20M-7.00M-13.32M-19.46M-10.93M
Net Income-8.95M-13.20M-7.00M-12.73M-19.42M-10.86M
Balance Sheet
Total Assets3.45M5.04M4.74M5.73M7.47M5.49M
Cash, Cash Equivalents and Short-Term Investments2.37M3.75M2.83M4.00M6.06M4.40M
Total Debt0.000.000.00207.38K256.96K0.00
Total Liabilities1.32M975.86K653.08K2.46M3.97M1.51M
Stockholders Equity2.13M4.07M4.08M3.28M3.51M3.99M
Cash Flow
Free Cash Flow-6.88M-6.92M0.00-11.19M-12.01M-7.63M
Operating Cash Flow-6.88M-6.92M-6.81M-11.19M-11.95M-7.63M
Investing Cash Flow150.00K0.001.50M0.00-34.02K-350.00K
Financing Cash Flow4.07M7.85M4.13M9.13M13.64M5.61M

Adial Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.33
Price Trends
50DMA
0.56
Negative
100DMA
0.64
Negative
200DMA
0.83
Negative
Market Momentum
MACD
-0.08
Negative
RSI
41.49
Neutral
STOCH
34.05
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADIL, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.56, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.49 is Neutral, neither overbought nor oversold. The STOCH value of 34.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADIL.

Adial Pharmaceuticals Risk Analysis

Adial Pharmaceuticals disclosed 66 risk factors in its most recent earnings report. Adial Pharmaceuticals reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Adial Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
52
Neutral
$7.53B0.32-61.76%2.28%16.60%1.56%
32
Underperform
$5.16M-217.01%45.99%
31
Underperform
$5.21M270.52%85.97%
24
Underperform
$9.47M<0.0113.29%-261.69%
15
Underperform
$4.24M-206.26%75.68%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ADIL
Adial Pharmaceuticals
0.33
-0.75
-69.44%
MBIO
Mustang Bio
1.19
-21.83
-94.83%
AEON
AEON Biopharma
0.84
-72.60
-98.86%
DRMA
Dermata Therapeutics
0.66
-1.65
-71.43%

Adial Pharmaceuticals Corporate Events

Executive/Board Changes
Adial Pharmaceuticals Appoints Tony Goodman as COO
Neutral
Mar 21, 2025

On March 20, 2025, Adial Pharmaceuticals entered into an employment agreement with Tony Goodman to serve as the Chief Operating Officer starting April 1, 2025, with a base salary of $300,000 and potential bonuses. Goodman has been acting as COO since January 2024 under a Master Services Agreement, which will terminate with the new employment agreement, providing stability and continuity in leadership for the company.

Product-Related AnnouncementsBusiness Operations and StrategyRegulatory Filings and Compliance
Adial Pharmaceuticals Advances AD04 with FDA Approval
Positive
Feb 25, 2025

On February 25, 2025, Adial Pharmaceuticals announced a positive response from the FDA regarding its in vitro bridging strategy for AD04, following a submission made on November 19, 2024. This agreement with the FDA marks a significant regulatory milestone, allowing Adial to proceed with manufacturing clinical supplies for the upcoming Phase 3 clinical program in 2025, advancing AD04 toward potential market approval as a treatment for addiction.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025