Adial Pharmaceuticals (ADIL) Investor presentation summary

Transaction highlights and structure

• Acquisition structured as a stock-for-stock deal, exchanging Azora equity for Adial common and preferred stock.

• $32M upfront financing with potential for an additional $32M upon IND or first dosing milestone.

• Combined company advances a colon-targeted AhR program for ulcerative colitis, with IND and Phase 1a studies expected in H1 2027.

• Leadership includes experienced executives from both companies and a new independent director with Genentech background.

Product and clinical development

• Lead asset AT177 is a fully synthetic, oral, colon-targeted AhR agonist designed for ulcerative colitis, inspired by indigo naturalis.

• AT177 demonstrates strong preclinical efficacy, optimized safety, and minimal systemic exposure.

• IND-enabling studies are ongoing, with IND filing planned for Q2 2027 and clinical proof-of-concept readout expected early 2028.

• AT177 converts to indirubin in the colon, maximizing local AhR activation and minimizing systemic risks.

Market opportunity and competitive landscape

• Inflammatory bowel disease (IBD) is a $30B global market, with $11B attributed to ulcerative colitis and 5M patients worldwide.

• Current therapies have limited efficacy and significant safety liabilities; AT177 aims to exceed these benchmarks.

• AhR agonists have shown potential to surpass the efficacy ceiling of existing UC drugs, with indigo naturalis and obefazimod as precedents.

• Positive clinical data in UC could unlock expansion into Crohn's disease and combination therapies.