Adial Pharmaceuticals posts bigger-than-expected Q2 net loss, hurt by acquisition charges
ADIL•What drove the results
- Acquisition charges - Net loss widened mainly due to a $46.2 million non-cash charge for acquired in-process research and development from the Azora Therapeutics acquisition.
- Merger costs - General and administrative expenses rose due to merger-related costs and severance expenses.
- Reduced R&D activity - Research and development expenses declined as the company focused on merger discussions.
Key details and analyst view
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Loss Per Share | Miss | $11.25 | $1.03 (4 Analysts) |
| Q2 Net Loss | Miss | $52 million | $2.008 million (3 Analysts) |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the biotechnology & medical research peer group is "buy".
Wall Street's median 12-month price target for Adial Pharmaceuticals Inc is $8.00, about 101% above its August 14 closing price of $3.98.
Outlook for AT177 development
Adial expects to file an IND for AT177 in the first half of 2027.
The company plans to start a Phase 1a clinical trial for AT177 in the second half of 2027.
