Avadel Pharmaceuticals stock price target raised to $36 at H.C. Wainwright

Published 05/09/2025, 12:32
Avadel Pharmaceuticals stock price target raised to $36 at H.C. Wainwright

Investing.com - H.C. Wainwright raised its price target on Avadel Pharmaceuticals (NASDAQ:AVDL) to $36.00 from $24.00 on Friday, while maintaining a Buy rating on the stock. The company has shown impressive performance, with revenue growing 132% over the last twelve months and maintaining strong gross profit margins of nearly 90%.

The price target increase follows Avadel’s Thursday announcement of an exclusive global license agreement with privately-held XWPharma to develop and commercialize valiloxybate, a GABAB receptor agonist, for all indications including sleep disorders.

Valiloxybate has been designed to deliver oxybate therapy benefits through a once-at-bedtime, salt-free and artificial sweetener-free formulation, targeting conditions such as narcolepsy and idiopathic hypersomnia (IH).

H.C. Wainwright believes valiloxybate could follow a more streamlined clinical development pathway than Avadel’s LUMRYZ, with potential launch in narcolepsy in the second half of 2028 and in idiopathic hypersomnia in 2029.

The firm’s revised price target reflects the addition of valiloxybate to its valuation assessment of Avadel Pharmaceuticals.

In other recent news, Avadel Pharmaceuticals has reported its financial results for the second quarter of 2025, significantly surpassing earnings and revenue forecasts. The company achieved earnings per share of $0.10, which was a substantial increase from the projected $0.03, marking a 233.33% surprise. Revenue reached $68.1 million, exceeding the expected $61.4 million. UBS has raised its price target for Avadel Pharmaceuticals to $20 from $13, maintaining a Buy rating, following strong Lumryz sales of $68 million, which surpassed both UBS’s estimate of $59 million and consensus expectations of $61 million. Additionally, Avadel Pharmaceuticals has entered into an exclusive global licensing agreement with XWPharma Ltd. to develop and commercialize valiloxybate, a salt-free and artificial sweetener-free oxybate therapy for sleep disorders. Under this agreement, Avadel will pay XWPharma $20 million upfront, with potential milestone payments of up to $30 million, and sales milestone payments of up to $155 million for annual net sales achievements up to $750 million. These developments reflect Avadel’s ongoing strategic efforts and financial performance in the market.

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