Strategic Advancements and Collaborations Propel Adial Pharmaceuticals’ Buy Rating
Jason McCarthy from Maxim Group maintains a Buy rating for Adial Pharmaceuticals with a $1.50 price target. The rating is based on strategic advancements, including a Phase 3 study for AD04 in alcohol use disorder, collaboration with Genomind for a genetic test, and a cautious financial strategy. These factors contribute to an optimistic outlook for AD04's market potential in the US and EU by 2030.
Jason McCarthy, an analyst from Maxim Group, maintained the Buy rating on Adial Pharmaceuticals. The associated price target remains the same with $1.50.
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Jason McCarthy has given his Buy rating due to a combination of factors surrounding Adial Pharmaceuticals’ strategic advancements and collaborations. The company is making significant progress towards a Phase 3 study for its AD04 treatment in alcohol use disorder (AUD), following a positive alignment with the FDA. This study will focus on patients identified through a validated genetic test, which is a crucial step forward in targeting the AG+ biomarker-positive population.
Adial’s partnership with Genomind to develop a cheek swab genetic test further strengthens its position, as this test is analytically validated and ready for use in the upcoming study. The collaboration aims to create a companion diagnostic test that could be easily adopted in clinical settings. Additionally, the company’s financial strategy includes a revenue risk adjustment and discounting future cash flows, which reflects a cautious yet optimistic outlook on the potential market for AD04 in both the US and EU by 2030.
