DUBLIN - Avadel Pharmaceuticals plc (NASDAQ: NASDAQ:AVDL), a company specializing in the development of transformative medicines with a market capitalization of $1.05 billion, has announced significant growth in the adoption of its narcolepsy drug LUMRYZ. In the fourth quarter of 2024, LUMRYZ generated approximately $50 million in net product revenue, marking a substantial increase of over 150% from the $19.5 million reported in the same period of 2023. According to InvestingPro data, the company maintains impressive gross profit margins of 91.92%, suggesting strong pricing power for its innovative treatment.
As of December 31, 2024, 2,500 patients were on LUMRYZ, including 600 who began treatment in the last quarter of the year. This patient base represents a more than 275% increase compared to the 900 patients recorded at the end of 2023. The fourth-quarter revenue was influenced by an estimated 1.5 fewer weeks of inventory in the channel at year-end compared to September 30, 2024.
Avadel’s CEO, Greg Divis, emphasized the positive feedback from patients and providers regarding the once-nightly dosing of LUMRYZ, which has been a key factor in its growing adoption. The company aims to enhance the LUMRYZ experience for patients and providers through strategic initiatives designed to drive uptake among narcolepsy patient segments.
Looking ahead to 2025, Avadel projects net product revenue for LUMRYZ to be between $240 million and $260 million, indicating a 50% year-over-year growth at the midpoint. The company also anticipates a positive cash flow of $20 million to $40 million, with 2,800 to 3,000 patients initiating therapy and a total of 3,300 to 3,500 patients on therapy by the end of 2025. InvestingPro analysis shows analyst consensus is highly bullish, with price targets ranging from $20 to $27, suggesting significant upside potential. Discover more insights and 8 additional ProTips about AVDL with an InvestingPro subscription.
Additionally, Avadel is progressing in its Phase 3 trial for idiopathic hypersomnia (IH) and developing a once-nightly, low-/no-sodium oxybate formulation bioequivalent to LUMRYZ.
The reported financial results are preliminary and unaudited, and final figures for the year ended December 31, 2024, are expected to be announced on or before March 3, 2025. These forward-looking statements are based on current market conditions and assumptions and could differ materially depending on market dynamics. Based on InvestingPro’s Fair Value analysis, AVDL is currently trading near its fair value, with a solid financial health score of 2.57 out of 5. Get access to the comprehensive Pro Research Report, available for AVDL and 1,400+ other US stocks, offering deep-dive analysis and actionable insights for informed investment decisions.
LUMRYZ was approved by the FDA on May 1, 2023, as the first and only once-at-bedtime treatment for cataplexy or excessive daytime sleepiness (EDS) in adults with narcolepsy. The approval was supported by the REST-ON Phase 3 trial, which demonstrated significant improvements in EDS, clinicians’ overall assessment of patient functioning, and cataplexy attacks.
The information in this article is based on a press release statement from Avadel Pharmaceuticals.
In other recent news, Avadel Pharmaceuticals reported strong third-quarter results with $50 million in net revenue from its narcolepsy medication, LUMRYZ, and a positive adjusted EBITDA of $6.1 million. The FDA has also extended approval for LUMRYZ’s use to pediatric narcolepsy patients aged seven and older. However, the company’s Chief Commercial Officer, Richard Kim, announced his resignation effective December 31, creating a potential challenge for the company. Despite his departure, Kim will remain eligible for the 2024 incentive compensation. In terms of analyst notes, H.C. Wainwright reaffirmed a Buy rating on Avadel but reduced the stock price target from $27.00 to $25.00 following the third-quarter results. The firm believes Avadel’s stock is significantly undervaluing LUMRYZ, even with less than 25% projected peak market share.
Similarly, Alkermes (NASDAQ:ALKS) maintains an Overweight rating influenced by the potential of ALKS-2680, an orexin 2 receptor (OX2R) agonist currently in development for the treatment of sleep/wake disorders. A leading sleep expert highlighted the drug’s transformative potential across narcolepsy subtypes and idiopathic hypersomnia (IH), suggesting it could significantly improve wakefulness compared to existing treatments. Piper Sandler reaffirmed a $37 price target for Alkermes, considering the safety and tolerability profile of ALKS-2680 and its potential to treat a broader range of conditions including NT1, NT2, and IH.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.