AVDL - Avadel Pharmaceuticals: Strong Launch Of Lumryz With A Legal Risk Backdrop
2024-01-28 02:56:55 ET
Summary
- Avadel Pharmaceuticals has made good progress with the launch of Lumryz, enrolling 1,900 patients and generating $19 million in Q4 net sales.
- Legal risks from competitor Jazz Pharmaceuticals remain a concern, with ongoing litigation and the potential for Lumryz to be pulled from the market.
- Lumryz can capture a significant portion of the narcolepsy market and expand into idiopathic hypersomnia.
- Risk-reward looks favorable for the long side, although the tail legal risk should not be neglected, even if Jazz's attempts look desperate.
Shares of Avadel Pharmaceuticals ( AVDL ) made little progress since the launch of Lumryz in June 2023 despite the product's good commercial uptake. The company announced in early January that approximately 1,900 patients were enrolled in the RYZUP hub at the end of 2023, that over 1,000 are already on Lumryz, and that Q4 net sales were $19 million. These are still the early days of the launch, but the numbers are very encouraging with what looks like good execution by the sales team, and Avadel enters 2024 with excellent coverage and contracts with all three major payers....
Avadel Pharmaceuticals: Strong Launch Of Lumryz With A Legal Risk Backdrop