Key Highlights

  • AZR shares are trading down 15.57% today at $4.12, in the second session under the new ticker.
  • The company changed its name from Adial Pharmaceuticals to Azora Therapeutics on October 28, 2026.
  • Stockholders approved converting Series A preferred stock from the June Acquisition into common shares.
  • Management says current cash should fund operations into 2028.
  • The lead program, AT177, is expected to enter a Phase 1 ulcerative colitis trial in the first half of 2027.

Rebrand Week Brings a Sharp Pullback for the Former Adial Stock

Azora Therapeutics (NASDAQ:AZR) shares are trading down 15.57% today at $4.12, putting the stock in Penny Stock territory just one session after it began trading under the new AZR ticker. The company, formerly known as Adial Pharmaceuticals, announced the name change on October 28, 2026, with the new ticker taking effect on Thursday on the Nasdaq Capital Market.

The same announcement said stockholders approved converting the Series A preferred stock issued in the June 2026 acquisition of Azora into common stock, subject to beneficial ownership limits. A new executive team was also named. No separate announcement tied to today's decline was identified, so the move is best read against these recent corporate changes.

Stockholders also approved the exercise of prefunded warrants sold in the June private placement. Both steps could increase the number of common shares in circulation over time, which is a Factor investors often weigh when a small-cap stock changes ticker and Capital Structure at once.

AT177 Ulcerative Colitis Program Anchors the New Pipeline

Azora is a clinical-stage drug developer whose lead asset, AT177, is an oral, colon-targeted aryl hydrocarbon receptor agonist for ulcerative colitis. The candidate is a prodrug of indirubin and remains in studies that enable an investigational new drug application. A Phase 1 trial is expected to begin in the first half of 2027.

Adial previously focused on treatments for addiction and related disorders. It completed the Azora acquisition on June 11, 2026, which shifted the company toward inflammatory bowel disease.

Management says the current cash position covers the IND-enabling studies and the start of the Phase 1 ulcerative colitis trial. The program has not yet reported human data, and the first patient dosing or IND acceptance milestones had not been reported in the latest filing.

Cash Runway Into 2028 After a $32 Million Private Placement

At the June closing, the company raised about $32 million in gross proceeds through a private Placement led by Coastlands Capital. The figure includes the conversion and retirement of certain Azora notes. Another $32 million in gross proceeds may follow once the Phase 1 study begins.

The latest quarterly filing showed cash of $28.7 million at June 30, 2026, up from $5.9 million at the end of 2025. The company reported a net loss of $52.0 million for the quarter, which included a $46.2 million charge for acquired in-process Research and Development tied to the Azora deal. Common shares outstanding stood at about 2.63 million as of August 12, before the preferred conversion approved this week.

Preferred Conversion and the Phase 1 Start Set the Next Marks for Azora

The conversion of the acquisition preferred stock is the structural change most likely to shape the share count from here, while the Phase 1 initiation in 2027 is the clinical milestone that also unlocks the second Tranche of financing. Further updates on IND-enabling studies, the new management team and trading in the renamed stock are the next items to follow.