Adial Pharmaceuticals (ADIL) AI Stock Analysis

• Market Cap: $7.10M
• Dividend Yield: N/A
• Average Volume (3M): 746.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: N/A
• EPS Growth: 75.96%
• Country: US
• Employees: 5
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.18
• Shares Outstanding: 21,828,215
• 10 Day Avg. Volume: 779,793
• 30 Day Avg. Volume: 746,186
• PEG Ratio: 0.02
• Price to Book (P/B): 4.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.71
• Enterprise Value/Market Cap: -0.38
• Enterprise Value/Revenue: -4.80K
• Enterprise Value/Gross Profit: 4.79K
• Enterprise Value/Ebitda: 0.33
• 1Y Price Target: $1.50
• Price Target Upside: 354.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 32 Underperform
• 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

Regulatory Support

Legislative support for new clinical trial endpoints can streamline regulatory approval for AD04, enhancing Adial's strategic positioning and potentially accelerating market entry.

Leadership Stability

The appointment of Tony Goodman as COO ensures leadership continuity, which is crucial for strategic execution and operational stability as the company advances its clinical programs.

Regulatory Milestone

The FDA's approval of AD04's in vitro strategy is a key regulatory milestone, advancing the drug to Phase 3 trials and bringing it closer to commercialization, which is vital for future revenue generation.

Negative Factors

Financial Challenges

The lack of revenue and ongoing net losses highlight financial instability, which can hinder long-term growth and necessitate continued reliance on external funding.

Negative Cash Flow

Negative cash flow from operations indicates challenges in self-sustaining financial health, increasing dependency on external financing and potentially limiting strategic flexibility.

Operational Inefficiencies

Operational inefficiencies, as evidenced by negative EBIT and EBITDA, suggest difficulties in managing costs and achieving profitability, which could impact long-term viability.

Adial Pharmaceuticals Business Overview & Revenue Model

Company Description

Adial Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutics for the treatment or prevention of addiction and related disorders. Its lead product is AD04, a selective serotonin-3 antagonist, which is in Phase III clinical trial for the treatment of alcohol use disorder. The company also focuses on developing drug candidates for non-opioid pain reduction and other diseases and disorders. Adial Pharmaceuticals, Inc. was founded in 2010 and is based in Charlottesville, Virginia.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	564.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-565.00	-565.00	-564.00	-60.50K	-55.11K	-564.00
EBITDA	-8.30M	-13.20M	-7.00M	-10.27M	-19.46M	-10.93M
Net Income	-8.45M	-13.20M	-7.00M	-12.73M	-19.42M	-10.86M
Balance Sheet
Total Assets	6.80M	5.04M	4.74M	5.73M	7.47M	5.49M
Cash, Cash Equivalents and Short-Term Investments	5.91M	3.75M	2.83M	4.00M	6.06M	4.40M
Total Debt	0.00	0.00	0.00	207.38K	256.96K	0.00
Total Liabilities	1.21M	975.86K	653.08K	2.46M	3.97M	1.51M
Stockholders Equity	5.59M	4.07M	4.08M	3.28M	3.51M	3.99M
Cash Flow
Free Cash Flow	-6.48M	-6.92M	0.00	-11.19M	-12.01M	-7.63M
Operating Cash Flow	-6.48M	-6.92M	-6.81M	-11.19M	-11.95M	-7.63M
Investing Cash Flow	150.00K	0.00	1.50M	0.00	-34.02K	-350.00K
Financing Cash Flow	8.96M	7.85M	4.13M	9.13M	13.64M	5.61M

Adial Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.33
• 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 0.33 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.36, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 6.06 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
KPRX	56 Neutral	$8.14M	-0.72	-43.39%	―	-100.00%	49.47%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
MTNB	45 Neutral	$6.46M	-0.33	-146.46%	―	―	24.30%
CLDI	37 Underperform	$7.35M	-0.20	―	―	―	91.46%
ADIL	32 Underperform	$7.10M	-0.27	-171.27%	―	―	75.96%
GLMD	28 Underperform	$6.52M	-0.22	-53.99%	―	―	56.31%

Adial Pharmaceuticals Corporate Events

Adial Pharmaceuticals Appoints Tony Goodman as COO

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.

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.