Avadel Pharmaceuticals stock price target raised to $24 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on Avadel Pharmaceuticals (NASDAQ:AVDL) to $24.00 from $22.00 on Friday, while maintaining a Buy rating following strong second-quarter results. The company, currently valued at $1.23 billion, maintains a strong Buy consensus among analysts, with an average rating of 1.38 on InvestingPro’s scale.

The pharmaceutical company reported $68.1 million in revenue for the second quarter of 2025, representing 64% growth compared to the same period last year. The performance exceeded H.C. Wainwright’s original estimate of $61 million, driven by strong sales of LUMRYZ, Avadel’s once-nightly sodium oxybate treatment for narcolepsy. According to InvestingPro data, the company maintains impressive gross profit margins of 90.06% and has achieved a remarkable 252.64% revenue growth over the last twelve months.

Avadel raised its full-year 2025 revenue guidance to $265-275 million from the previous $255-265 million, citing sustained patient growth, efficiency improvements, and better reimbursement levels. The company reported that annualized net revenue per patient increased to $92,000 in the second quarter. With a healthy current ratio of 2.73, Avadel’s liquid assets comfortably exceed its short-term obligations. InvestingPro subscribers have access to 13 additional key insights about Avadel’s financial health and growth potential.

The firm noted that Avadel delivered second-quarter earnings of $0.10 per share, outperforming H.C. Wainwright’s forecast of $0.02 per share. The analyst raised its full-year 2025 earnings estimate to $0.34 per diluted share from $0.24, and increased its 2026 earnings forecast to $1.21 from $1.00 per share.

H.C. Wainwright projects Avadel could end 2025 with over 3,500 patients on therapy, increasing to approximately 4,000 in 2026, with LUMRYZ continuing to attract new prescribers due to its extended-release profile driving adoption among narcolepsy patients.

In other recent news, Avadel Pharmaceuticals has been in the spotlight due to several developments. The U.S. Court of Appeals upheld the FDA’s approval of LUMRYZ, Avadel’s once-nightly treatment for narcolepsy, ensuring its continued availability to patients. Additionally, the FDA granted Orphan Drug Designation to LUMRYZ for treating Idiopathic Hypersomnia, recognizing its potential clinical superiority. In a strategic move, Avadel appointed Susan Rodriguez as Chief Operating Officer to enhance the growth of LUMRYZ. Rodriguez has a strong background in biopharma, having held leadership roles at Ardelyx (NASDAQ:ARDX) and Tolmar Pharmaceuticals. Meanwhile, ASL Strategic Value Fund, a significant shareholder, has urged fellow investors to vote against Avadel’s board members, criticizing the management of LUMRYZ’s launch. The fund claims this mismanagement has led to significant lost revenue potential. These developments highlight a period of both strategic advancements and shareholder challenges for Avadel Pharmaceuticals.

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