Is Adagio Medical (ADGM) stock Halal?

Adagio Medical is a medical technology company focused on developing innovative solutions for cardiac arrhythmias. Its primary function is to create advanced equipment and systems designed to enhance the treatment of heart rhythm disorders, which are prevalent and impactful conditions. Adagio's novel cryoablation technology platform is central to its offerings, enabling precise and effective therapies aimed at improving patient outcomes. Before any of that matters to a Muslim investor, one question comes first: is Adagio Medical stock Halal?

Is Adagio Medical Shariah compliant?

Healthcare rarely troubles the activity screen; treating illness is permissible work. For Adagio Medical, the AAOIFI Shariah Standard No. 21 verdict turns on the balance sheet instead: research is capital hungry, and interest bearing debt and investments must each stay below 30% of market capitalisation.

Does Adagio Medical pass the business activity test?

The activity screen is only part of the picture this month: Adagio Medical currently fails the non-permissible income, interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. Treating illness is permissible work; the scrutiny belongs to the financing behind it.

Is Adagio Medical's income Halal?

No. Adagio Medical's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Adagio Medical meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps: interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has ADGM re-screened every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance