Glen Allen biopharma company Adial Pharmaceuticals Inc. (NASDAQ: ADIL) has raised $2.75 million from an institutional investor.
The company, which specializes in therapies for addiction and related disorders, said it will use the new funding for working capital and general corporate purposes.
The name of the investor was not disclosed, but Adial said a “health care-focused institutional investor” has entered into a warrant inducement agreement to purchase up to 2.3 million shares in the company at a reduced price of 74 cents per share. The deal was expected to close this week.
In April, Adial was granted a U.S. patent for a new treatment of disorders and diseases related to alcohol and opioid abuse for genetically identified patients. The company is using an investigational drug called AD04 for patients with serotonin-related gene variations.
“By identifying genetic markers associated with AD04 response, we are pioneering a precision medicine approach for [alcohol use disorder] that has the potential to enhance treatment efficacy and improve patient outcomes,” CEO Cary Claiborne said in a statement. “We remain committed to advancing AD04 through clinical development and regulatory pathways to address the urgent need for effective, personalized addiction treatments.”
Adial, which was formerly based in Charlottesville, raised $7.32 million in an IPO in 2018.
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