Avadel Pharmaceuticals (AVDL) AI Stock Analysis

• Market Cap: $1.24B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: 132.35%
• EPS Growth: 97.34%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.10
• Shares Outstanding: 97,097,640
• 10 Day Avg. Volume: 1,172,871
• 30 Day Avg. Volume: 1,174,380
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 4.29
• Enterprise Value/Gross Profit: 4.76
• Enterprise Value/Ebitda: -57.66
• 1Y Price Target: $18.75
• Price Target Upside: 47.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $13.50 ▲(5.88% Upside)

Avadel Pharmaceuticals' strong technical indicators and positive earnings call sentiment are offset by financial performance challenges and valuation concerns. The company's strategic corporate events provide additional support, but profitability and cash flow issues remain significant risks.

Positive Factors

Market Potential

LUMRYZ could achieve total peak sales exceeding $1.3 billion annually by the mid-2030s if approved to treat both narcolepsy and idiopathic hypersomnia.

Product Approval

The FDA granted Orphan Drug Designation to Lumryz, highlighting its potential major contribution to patient care.

Revenue Growth

The company reported strong second quarter revenues of $68.2M, surpassing expectations, driven by improvements in key patient metrics.

Negative Factors

Investor Sentiment

Avadel's current stock price reflects excessively conservative investor sentiment, underrating the market opportunity for LUMRYZ in narcolepsy and its potential in idiopathic hypersomnia.

Market Competition

Avadel's competition may fragment further as the leading purveyor of branded oxybate products shifts focus to other therapeutic areas.

Treatment Adoption

The IH patient population totals ~42K individuals in the U.S. alone; only 10% of these are currently treated with the only FDA-approved oxybate therapy, suggesting significant market potential for LUMRYZ.

Avadel Pharmaceuticals Business Overview & Revenue Model

Company Description

Avadel Pharmaceuticals (AVDL) is a biopharmaceutical company focused on developing and commercializing innovative therapies to treat various sleep disorders and other conditions. The company operates primarily in the pharmaceutical sector, specializing in the formulation and delivery of medications that enhance patient outcomes. Avadel's core products include its proprietary drug delivery technologies and a portfolio of approved medications aimed at improving sleep quality and managing related health issues.

How the Company Makes Money

Avadel Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, including both proprietary and partnered medications. The company earns money from direct sales of its approved drugs, as well as through licensing agreements and collaborations with other pharmaceutical companies. Key revenue streams include royalties from licensed products and potential milestone payments tied to the achievement of specific regulatory or sales targets. Additionally, strategic partnerships with larger pharmaceutical firms can provide financial support and enhance market reach, contributing to overall earnings. Factors such as product efficacy, market demand, and successful commercialization efforts play significant roles in driving the company’s financial performance.

Avadel Pharmaceuticals Financial Statement Overview

Summary

Avadel Pharmaceuticals shows strong revenue growth and a healthy gross profit margin. However, persistent profitability challenges, negative net income, and cash flow difficulties weigh heavily on the financial performance score.

Income Statement

Avadel Pharmaceuticals shows a strong revenue growth trajectory with a significant increase in total revenue from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin for TTM is healthy at 90.06%, indicating efficient cost management. However, the company continues to report net losses, resulting in a negative net profit margin of -13.59% for TTM. The EBIT and EBITDA margins, both negative, reflect challenges in achieving profitability, affecting the overall income statement score.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.04, suggesting low leverage, which is positive. However, the return on equity (ROE) is negative due to continued net losses, and the equity ratio is 44.10%, indicating a moderate reliance on equity financing. The balance sheet reflects a stable asset base but highlights the need for improved profitability.

Cash Flow

Operating cash flow remains negative, indicating ongoing cash flow challenges. On a positive note, free cash flow has improved from the previous year, with a growth rate of 45.82% for TTM. The operating cash flow to net income ratio and free cash flow to net income ratio are both negative, emphasizing the need for stronger cash generation relative to net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	169.12M	27.96M	0.00	0.00	22.33M
Gross Profit	153.84M	27.12M	-1.49M	-815.00K	16.59M
EBITDA	-35.57M	-149.13M	-97.60M	-84.78M	-34.97M
Net Income	-48.83M	-160.28M	-137.46M	-77.33M	7.03M
Balance Sheet
Total Assets	164.24M	164.70M	132.78M	247.26M	311.64M
Cash, Cash Equivalents and Short-Term Investments	73.78M	105.11M	96.50M	157.22M	221.40M
Total Debt	1.70M	35.38M	131.02M	145.00M	130.52M
Total Liabilities	90.39M	76.96M	153.93M	169.02M	149.37M
Stockholders Equity	73.85M	87.74M	-21.14M	78.24M	162.27M
Cash Flow
Free Cash Flow	-46.91M	-128.51M	-71.02M	-77.34M	-48.83M
Operating Cash Flow	-46.91M	-128.51M	-70.30M	-77.31M	-48.73M
Investing Cash Flow	51.78M	-50.09M	79.70M	56.93M	-69.72M
Financing Cash Flow	15.97M	135.34M	14.54M	263.00K	179.68M

Avadel Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVDL, the sentiment is Positive. The current price of 12.75 is above the 20-day moving average (MA) of 11.05, above the 50-day MA of 10.05, and above the 200-day MA of 9.68, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 76.98 is Negative, neither overbought nor oversold. The STOCH value of 66.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVDL.

Avadel Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLL	75 Outperform	$1.10B	33.72	16.16%	―	22.61%	-63.00%
EBS	65 Neutral	$457.22M	3.49	30.24%	―	-22.74%	―
AVDL	64 Neutral	$1.24B	―	-3.63%	―	132.35%	97.34%
DERM	58 Neutral	$176.35M	―	-48.14%	―	-29.69%	-105.88%
ESPR	57 Neutral	$370.63M	―	23.44%	―	-3.48%	41.37%
AQST	48 Neutral	$387.38M	―	77.48%	―	5.29%	-37.31%
Sector *	46 Neutral	C$193.30M	-2.83	-24.76%	3.14%	19.77%	0.53%

Avadel Pharmaceuticals Corporate Events

Avadel Pharmaceuticals Elects New Board and Auditor

On July 29, 2025, Avadel Pharmaceuticals held its Annual Meeting of Shareholders where a quorum was established with 83,659,463 shares represented. The meeting resulted in the election of seven directors to the Board for a one-year term and the ratification of Deloitte & Touche LLP as the company’s independent auditor for the fiscal year ending December 31, 2025. These decisions are expected to impact the company’s governance and financial oversight positively.

The most recent analyst rating on (AVDL) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Avadel Pharmaceuticals stock, see the AVDL Stock Forecast page.

Avadel Pharmaceuticals Wins Appeal on LUMRYZ Approval

On June 22, 2023, Jazz Pharmaceuticals filed a lawsuit against the FDA and other entities, challenging the approval of Avadel Pharmaceuticals‘ drug LUMRYZ. The lawsuit claimed the approval was unlawful. On October 30, 2024, the D.C. Court ruled in favor of the FDA and Avadel, rejecting Jazz’s claims. Jazz appealed the decision, but on June 27, 2025, the D.C. Court of Appeals upheld the original ruling, affirming the FDA’s approval of LUMRYZ.

The most recent analyst rating on (AVDL) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Avadel Pharmaceuticals stock, see the AVDL Stock Forecast page.

Avadel Pharmaceuticals Receives FDA Orphan Drug Designation

On June 5, 2025, Avadel Pharmaceuticals announced that the FDA granted Orphan Drug Designation to LUMRYZ for the treatment of idiopathic hypersomnia, highlighting its potential clinical superiority and contribution to patient care. This designation supports Avadel’s strategy to develop differentiated therapies for rare sleep disorders and could provide market exclusivity and other benefits, enhancing its position in the industry.

The most recent analyst rating on (AVDL) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Avadel Pharmaceuticals stock, see the AVDL Stock Forecast page.

Avadel Pharmaceuticals Appoints New Chief Operating Officer

On May 13, 2025, Avadel Pharmaceuticals announced the appointment of Susan Rodriguez as Chief Operating Officer. This strategic move is expected to enhance the company’s commercial strategy and operations, particularly as it scales to meet the growing demand for its narcolepsy treatment, LUMRYZ. Rodriguez’s extensive experience in the biopharmaceutical industry, including her previous roles in launching innovative therapies, positions her to significantly contribute to Avadel’s growth and market expansion efforts.

The most recent analyst rating on (AVDL) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Avadel Pharmaceuticals stock, see the AVDL Stock Forecast page.