Adial Pharmaceuticals (ADIL) AI Stock Analysis

• Market Cap: $4.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: N/A
• EPS Growth: 45.99%
• Country: US
• Employees: 7
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -3.48
• Shares Outstanding: 6,574,588
• 10 Day Avg. Volume: 88,183
• 30 Day Avg. Volume: 1,548,206
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.04
• Price to Cash Flow (P/CF): -0.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.00
• Price Target Upside: 1094.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Adial Pharmaceuticals faces major financial challenges with negative cash flows and ongoing losses, heavily impacting its stock score. However, recent regulatory advancements and strategic initiatives offer some positive outlook. Despite these developments, technical indicators suggest a bearish trend, and lack of profitability makes valuation unattractive.

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 Feedback

Regulatory feedback on planned P3 program was positive and is being utilized to inform and guide the company's next steps for the AD04 development.

Negative Factors

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 Business Overview & Revenue Model

Company Description

Adial 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 Money

Adial 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 struggles with revenue generation, resulting in persistent net losses and negative cash flows. Despite maintaining a strong equity base and zero debt, the company's operational inefficiencies and reliance on external financing present significant financial challenges.

Income Statement

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

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

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.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-564.00	-60.50K	-55.11K	-564.00
	EBIT
-8.28M	-6.89M	-13.32M	-19.29M	-10.93M
	EBITDA
-8.28M	-7.00M	-13.32M	-19.46M	-10.93M
	Net Income Common Stockholders
-13.20M	-7.00M	-12.73M	-19.42M	-10.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.75M	2.83M	4.00M	6.06M	4.40M
	Total Assets
5.04M	4.74M	5.73M	7.47M	5.49M
	Total Debt
0.00	0.00	207.38K	256.96K	0.00
	Net Debt
-3.75M	-2.83M	-3.79M	-5.81M	-4.40M
	Total Liabilities
975.86K	653.08K	2.46M	3.97M	1.51M
	Stockholders Equity
4.07M	4.08M	3.28M	3.51M	3.99M
Cash Flow		Free Cash Flow
-6.92M	0.00	-11.19M	-12.01M	-7.63M
	Operating Cash Flow
-6.92M	-6.81M	-11.19M	-11.95M	-7.63M
	Investing Cash Flow
0.00	1.50M	0.00	-34.02K	-350.00K
	Financing Cash Flow
7.85M	4.13M	9.13M	13.64M	5.61M

Adial Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.67 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.87, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.62 is Neutral, neither overbought nor oversold. The STOCH value of 19.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADIL.

Adial Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	49 Neutral	$6.90B	0.02	-54.05%	2.46%	24.91%	-3.14%
ALDX	44 Neutral	$413.18M	―	-58.54%	―	―	-47.28%
ADIL	40 Underperform	$4.52M	―	-323.80%	―	―	45.99%
CTXR	35 Underperform	$13.84M	―	-52.85%	―	―	8.99%
BTAI	33 Underperform	$8.13M	―	82.91%	―	83.25%	70.75%
EPIX	32 Underperform	$72.80M	―	-23.98%	―	―	-19.93%
OTLK	28 Underperform	$48.03M	―	<0.01%	―	―	-29.01%

Adial Pharmaceuticals Corporate Events

Adial Pharmaceuticals Advances AD04 with FDA Approval

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.

Adial Pharmaceuticals Focuses on Strategic Growth Initiatives

Adial Pharmaceuticals announced that it will be engaging in business development meetings over the coming weeks and has updated its business development presentation, which includes forward-looking statements. The company stated that this information will not be filed under certain sections of the Securities Act and will not be incorporated into any SEC filings, highlighting the company’s focus on strategic growth initiatives and communication with stakeholders.

Adial Pharmaceuticals Highlights AD04 for Alcohol Use Disorder

Adial Pharmaceuticals has updated its corporate presentation, highlighting the development of AD04, a genetically targeted precision medication for treating Alcohol Use Disorder (AUD). The medication shows promise by significantly reducing heavy drinking days in patients with specific genotypes, addressing the large unmet medical need in the AUD market, which is characterized by a lack of effective treatments and substantial social and economic costs.

Adial Pharmaceuticals’ New Purchase Agreement with Alumni Capital

Adial Pharmaceuticals has entered into a new Purchase Agreement with Alumni Capital LP, allowing the company to sell up to $5 million of newly issued shares, with the potential to increase to $10 million, at its discretion. This agreement provides Adial Pharmaceuticals with strategic flexibility in managing capital and funding operations, potentially impacting its market positioning by enabling investments in strategic opportunities, expanding staffing and capabilities, and supporting general corporate purposes.