Adial Pharmaceuticals Receives Final Reimbursement Payment Of $350,000 From Adovate
Portfolio Pulse from Benzinga Newsdesk
Adial Pharmaceuticals has received the final reimbursement payment of $350,000 from Adovate. The agreement includes potential development and approval milestones of up to $11 million per compound, with a total of up to $33 million for the first three compounds. Additionally, there are $50 million in commercial milestones, totaling up to $83 million, plus potential payments for additional compounds. Adial also secured a low single-digit royalty and a 15% equity stake in Adovate, with anti-dilution protection to maintain this ownership percentage until Adovate receives $4 million in cumulative funding.
December 20, 2023 | 2:08 pm
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Adial Pharmaceuticals received a final payment of $350,000 from Adovate and could receive up to $83 million in total milestones, plus royalties. It also acquired a 15% stake in Adovate with anti-dilution rights.
The final payment signifies the completion of an immediate financial obligation from Adovate to Adial, which is positive for cash flow. The potential for significant milestone payments and royalties, along with a substantial equity stake in Adovate, suggests a strong future revenue stream and investment value. The anti-dilution protection ensures Adial's stake remains meaningful, which could be beneficial if Adovate grows in value. This news is likely to be viewed positively by investors, potentially leading to a short-term increase in ADIL's stock price.
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