Avadel Pharmaceuticals PLC (AVDL) Q3 2024 Earnings Call Highlights: Strong Patient Growth and ...

In This Article:

  • Net Revenue: $50 million in the third quarter.

  • Gross Profit: $43.9 million for the quarter.

  • Operating Expenses: $44.2 million GAAP operating expenses, with $37.8 million in cash operating expenses.

  • Adjusted EBITDA: Positive $6.1 million.

  • Cash and Equivalents: $66 million as of September 30.

  • Active Patients: 2,300 patients on therapy as of September 30.

  • New Patient Starts: 700 patients initiated therapy in Q3.

  • Gross Margin: Impacted by approximately 3.5% due to a onetime adjustment related to potential royalty.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Avadel Pharmaceuticals PLC (NASDAQ:AVDL) reported consistent patient growth for LUMRYZ, with 2,300 active patients and 700 new initiations in Q3, resulting in $50 million in net revenue.

  • The company received FDA approval and orphan drug exclusivity for LUMRYZ in pediatric patients, expanding its treatment reach.

  • LUMRYZ is showing strong uptake among new to oxybate patients, indicating potential market expansion.

  • Avadel Pharmaceuticals PLC (NASDAQ:AVDL) secured a favorable court ruling affirming FDA's approval and clinical superiority decision for LUMRYZ.

  • The company is making strategic investments to improve patient persistency and support, including doubling nurse care navigators and expanding the sales team.

Negative Points

  • New to oxybate patients are showing lower persistency rates compared to switch patients, posing a challenge for long-term patient retention.

  • The company anticipates potential seasonal impacts in Q4, including fewer shipping days and higher gross-to-net deductions.

  • There is ongoing patent litigation with Jazz Pharmaceuticals, which could impact future financials.

  • The company is facing challenges in educating new to oxybate patients about the time required to find their optimal dose, leading to higher discontinuation rates.

  • Despite strong commercial coverage, there are concerns about insurance changes and reauthorization processes affecting patient continuity.

Q & A Highlights

Q: Can you talk about the patient trends you're seeing so far, including the month of October and the parts of November? And your confidence around a strong Q4 growth trajectory despite some potential seasonality and higher gross to net deductions? Are you still confident you will continue gaining share from former oxybate users as well as existing switches, not just the naive oxybate group? A: Richard Kim, Chief Commercial Officer: We continue to see strong demand for LUMRYZ this quarter. The interest remains very strong, and switch patients will continue to be a core part of our business. The value proposition for once-at-bedtime dosing is compelling, and we expect to maintain our share from switch patients.

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