Analyst Jason McCarthy from Maxim Group maintained a Buy rating on Adial Pharmaceuticals and keeping the price target at $1.50.
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Jason McCarthy has given his Buy rating due to a combination of factors surrounding Adial Pharmaceuticals’ strategic advancements. The company has recently entered into a collaboration with Genomind to develop a genetic test that identifies specific SNPs impacting the serotonergic system for their upcoming Phase 3 study. This test targets the AG+ subset of alcohol use disorder patients, a group that showed significant improvements in previous trials. The successful validation of this test represents a crucial milestone, as it could serve as a companion diagnostic tool, simplifying patient selection and enhancing treatment efficacy.
Additionally, Adial has aligned with the FDA on the design of their Phase 3 study for AD04, which will focus on comparing the drug to a placebo in reducing heavy drinking days among AG+ patients. This study design is informed by prior findings that highlighted the AG+ population as key responders. The use of a cheek swab test, which is both patient-friendly and efficient, further strengthens the potential for widespread adoption. These strategic moves position Adial favorably for future success, justifying the Buy rating.
According to TipRanks, McCarthy is an analyst with an average return of -11.6% and a 38.63% success rate. McCarthy covers the Healthcare sector, focusing on stocks such as OS Therapies Incorporated, Atossa Therapeutics, and SCYNEXIS.