Avadel Pharmaceuticals (AVDL) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: 252.64%
• EPS Growth: 85.10%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 96,892,980
• 10 Day Avg. Volume: 1,158,147
• 30 Day Avg. Volume: 1,511,745
• PEG Ratio: -0.79
• Price to Book (P/B): 13.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.43
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 5.44
• Enterprise Value/Ebitda: -4.62
• 1Y Price Target: $19.33
• Price Target Upside: 76.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $12.00 ▲(9.29%Upside)

Avadel Pharmaceuticals' overall stock score reflects robust growth potential driven by strong product adoption and strategic corporate developments. However, ongoing profitability challenges and valuation concerns limit the upside. Technical momentum provides a positive outlook, but investors should be cautious of overbought signals.

Positive Factors

Market Growth

Avadel Pharmaceuticals announced an increase in expected patient numbers and revenue for their product Lumryz, signaling strong future growth.

Product 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.

Regulatory Advancement

The FDA’s preliminary finding of LUMRYZ's superiority suggests that approval in idiopathic hypersomnia is expected to proceed without significant regulatory hurdles.

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.

Avadel Pharmaceuticals Business Overview & Revenue Model

Company Description

Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. Its lead product candidate is FT218, a formulation of sodium oxybate, which is in a Phase 3 clinical trial for the treatment of excessive daytime sleepiness and cataplexy in adults with narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals plc in January 2017. Avadel Pharmaceuticals plc was incorporated in 2015 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Avadel Pharmaceuticals generates revenue primarily through the commercialization of its pharmaceutical products. The company's main revenue stream comes from the sales of LUMRYZ™, which was developed to treat excessive daytime sleepiness in patients with narcolepsy. Avadel also invests in research and development to expand its product pipeline, which could lead to additional revenue sources in the future. Strategic partnerships and collaborations with other pharmaceutical companies can also contribute to its earnings, enhancing distribution and market penetration.

Avadel Pharmaceuticals Financial Statement Overview

Summary

Avadel Pharmaceuticals exhibits strong revenue growth and a high gross profit margin, yet faces persistent profitability challenges with negative net income and cash flow difficulties. The balance sheet is stable with low leverage, but negative ROE indicates a need for improved earnings.

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: 10.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 10.98 is above the 20-day moving average (MA) of 9.65, above the 50-day MA of 9.46, and above the 200-day MA of 9.81, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 73.52 is Negative, neither overbought nor oversold. The STOCH value of 86.52 is Negative, 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	$1.00B	25.71	19.23%	―	17.17%	-51.97%
AVDL	67 Neutral	$1.05B	―	-34.65%	―	252.64%	85.10%
DERM	63 Neutral	$167.50M	―	-48.14%	―	-29.69%	-105.88%
EBS	56 Neutral	$376.15M	―	-21.63%	―	-18.56%	76.88%
ESPR	54 Neutral	$231.89M	―	23.44%	―	12.99%	17.78%
AQST	48 Neutral	$417.18M	―	77.48%	―	5.29%	-37.31%
Sector *	46 Neutral	C$195.87M	-3.29	-23.14%	1.84%	20.75%	-0.36%

Avadel Pharmaceuticals Corporate Events

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.

Avadel Pharmaceuticals Wins Court Ruling for LUMRYZ Expansion

On May 6, 2025, Avadel Pharmaceuticals announced a favorable ruling from the United States Court of Appeals for the Federal Circuit, which overturned parts of an injunction by the Delaware Court regarding LUMRYZ as a treatment beyond narcolepsy. This decision allows Avadel to seek FDA approval for LUMRYZ in treating idiopathic hypersomnia and to conduct new clinical trials, enhancing its market positioning and potential offerings in the biopharmaceutical industry.