Adial agreed to buy Azora in a $64 million deal structured as an equity exchange, bringing Azora’s lead IBD candidate AT177 into Adial’s pipeline. The oral, colon-targeted prodrug is designed to selectively activate the aryl hydrocarbon receptor (AhR) in the gut lining while avoiding meaningful systemic exposure. The transaction is positioned around regulatory-relevant differentiation: both companies cite AhR target validation in ulcerative colitis and aim to minimize immunosuppression risk that could arise from systemic AhR agonism. Adial said the combined company will be funded through key clinical milestones for the program’s early clinical development. Azora’s scientific rationale draws on indigo naturalis and indirubin’s AhR activation biology, with AT177 engineered for gut-restricted delivery as a potential “best-in-class” long-term-use option.