Adial Pharmaceuticals receives milestone payment from Adovate

Adial Pharmaceuticals (ADIL) has received a six-figure development milestone payment from Adovate, following the commencement of a Phase 1 clinical trial evaluating Adovate’s lead compound for asthma, ADO-5030. This milestone payment follows Adovate’s exercise of its option to acquire the assets and business of Purnovate, a wholly owned subsidiary of Adial Pharmaceuticals, as previously disclosed. The ongoing Phase 1 study is a Single Ascending Dose clinical trial designed to evaluate the safety, tolerability, and pharmacokinetics of Adovate’s novel adenosine receptor antagonist in healthy volunteers. The compound is being developed as a potential first-line therapy for asthma, a large and underserved global market with substantial unmet medical needs, with a differentiated mechanism of action and the potential to shift the treatment paradigm for asthma patients globally. Under the terms of the agreement with Adovate, Adial is eligible to receive more than $50 million in commercial milestone payments plus an additional $11 million in development and approval milestone payments per compound, for a total consideration of up to $83 million for the first three compounds alone if such milestones are achieved. In addition, Adial is entitled to low single-digit royalties on net sales should the program advance to commercialization. Adial also retains a significant equity stake in Adovate of over 10%, positioning the Company to participate in the long-term upside as the asthma candidate advances through clinical development and toward potential commercialization.