AVDL - Avadel Pharmaceuticals: Robust Launch Of Lumryz And Eased Litigation Overhang

2024-03-05 14:00:00 ET

Summary

• Avadel's stock rose 51% post-buy recommendation, buoyed by Q4 earnings and a favorable royalty rate judgment versus Jazz Pharmaceuticals.
• Lumryz's market penetration and unique once-nightly dosing advantage are driving optimistic revenue forecasts and operational breakeven projections.
• A court ruling on the patent dispute awarded Avadel a manageable 3.5% royalty to Jazz, significantly less than the feared 27%.
• Recommends buying AVDL due to its strategic market position, financial health, and recent legal victory, despite high cash burn and ongoing litigation risks.

Introduction

Avadel Pharmaceuticals plc 's ( AVDL ) stock is up 51% since my "Buy" recommendation in November, and we've had a couple of key updates that took place on Monday....

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