Key Highlights

  • Net loss for the third quarter of 2026 was $64.6 million, or $4.52 per share, compared with $1.8 million a year earlier.
  • The quarterly loss included a non-cash charge of $57.1 million.
  • The company changed its name from Adial Pharmaceuticals and began trading on Nasdaq as AZR on October 29, 2026.
  • An IND for AT177 and a Phase 1a start are planned for the first half of 2027.

Azora Therapeutics, Inc. (NASDAQ:AZR) reported its third quarter 2026 financial results and provided a Business update on November 12, 2026. The Los Angeles company develops locally acting treatments for serious immune-mediated and inflammatory diseases. The quarter followed the company's name change from Adial Pharmaceuticals and its transition to the Nasdaq Capital Market, and its reported net loss rose sharply from a year earlier because of a large non-cash charge.

Net Loss and the Non-Cash Charge

Azora reported a net loss of $64.6 million, or $4.52 per basic and diluted share, for the three months ended September 30, 2026. The same period of 2025 showed a net loss of $1.8 million, or $2.02 per share. The company said the third-quarter figure includes a non-cash charge of $57.1 million.

The release ties the charge to the transaction matters approved by stockholders in October, which included the conversion of Series A preferred stock and the exercise of pre-funded and milestone warrants. The per-share comparison is affected by the change in the share count over the period, and the company's full financial statements provide the detail behind the charge.

Corporate Changes and Transition

Effective October 29, 2026, the company changed its name from Adial Pharmaceuticals to Azora Therapeutics, and its common stock began trading on The Nasdaq Capital Market under the symbol AZR. On November 2, 2026, 9,924,260 shares of Series A preferred stock converted into common stock, and 3,006,341 Preferred Shares remained outstanding and convertible.

Azora also strengthened its leadership, appointing Celia Economides as chief financial officer and David Rubenstein, M.D., Ph.D., as chief scientist. Rubenstein led development of the first approved AhR agonist, according to the company. New board members were also added with experience in inflammatory disease and company building.

AT177 Development Plan

AT177 is an oral, colon-targeted aryl hydrocarbon receptor agonist that Azora says is designed to restore mucosal immune balance at the site of disease with minimal systemic exposure. The company said it continued IND-enabling studies during the quarter.

Chief Executive Matt Davidson said the company remains on track to submit an IND for AT177 and begin a Phase 1a trial in the first half of 2027. The release notes a focus on ulcerative colitis, though it does not provide clinical data for AT177 in the quarter.

Final Word

The third quarter shows Azora reporting a much larger net loss than a year earlier, driven by a non-cash charge tied to its preferred stock and Warrant transactions, alongside a new name, a new Nasdaq listing and an expanded Leadership team. The company's next milestone is the AT177 IND submission and Phase 1a start planned for the first half of 2027. Future reports will show how the share count and preferred conversions affect its per-share results.