Adial Pharmaceuticals reports Q2 2026 results, advances AT177 after Azora acquisition

Adial Pharmaceuticals reported financial results for the quarter ended June 30, 2026, on August 17, 2026, alongside a business update centered on its acquisition of Azora Therapeutics. The deal added AT177, a fully synthetic, oral, colon-targeted aryl hydrocarbon receptor agonist in development for ulcerative colitis, to its pipeline.¹

Chief Development Officer Matt Davidson described AT177 as a fully synthetic, oral prodrug engineered to release the active AhR agonist in the colon, where disease occurs, while minimizing systemic exposure.¹ The company said it remains on track to file an IND in the first half of 2027.¹

According to the release, AT177 is currently in IND-enabling studies, with an IND filing planned for the first half of 2027, initiation of a Phase 1a single- and multiple-ascending-dose clinical trial planned to commence in the second half of 2027, followed by a Phase 1b proof-of-concept study in UC patients.¹

On financing, Adial said it closed the first $32 million tranche, including the conversion of $5.5 million of notes, of an up to $64 million private financing led by biotechnology-focused institutional investors¹ during the quarter. The company stated this financing provides the capital needed to advance AT177 through key clinical development milestones.¹

On cash position, the company reported cash and cash equivalents of $28.7 million as of June 30, 2026, up from $4.6 million as of March 31, 2026.¹ Adial said it believes its existing cash and cash equivalents will fund operating expenses into the second half of 2027,¹ adding that this projection does not assume receipt of the additional $32 million available under the milestone tranche of the private placement.¹

The quarter's net loss of $52.0 million was driven largely by acquired in-process research and development expense was $46.2 million for the three months ended June 30, 2026, primarily driving the increase in net loss, together with increased general and administrative expenses.¹ The company said this non-cash charge has no effect on the Company's cash position or on the cash runway described above.¹