Avadel Pharmaceuticals (AVDL) AI Stock Analysis

• Market Cap: $1.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: 132.35%
• EPS Growth: 97.34%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.10
• Shares Outstanding: 97,097,640
• 10 Day Avg. Volume: 1,637,390
• 30 Day Avg. Volume: 1,469,839
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.53
• Enterprise Value/Revenue: 3.77
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 125.48
• 1Y Price Target: $20.44
• Price Target Upside: 26.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: $16.50 ▲(1.85% Upside)

Avadel Pharmaceuticals is on a positive trajectory with strong technical momentum and positive earnings call sentiment. However, profitability challenges and valuation concerns temper the overall score. The company's strategic initiatives and recent corporate events provide additional growth potential.

Positive Factors

Revenue Growth

Strong revenue growth from LUMRYZ indicates successful market penetration and product adoption, supporting long-term financial stability.

Orphan Drug Designation

The Orphan Drug Designation provides market exclusivity, enhancing Avadel's competitive edge and potential revenue streams in a niche market.

Global License Agreement

The agreement expands Avadel's product portfolio and market reach, leveraging its infrastructure for new growth opportunities in sleep medicine.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder reinvestment and growth, impacting long-term financial health and shareholder returns.

Negative Free Cash Flow Growth

Negative free cash flow growth indicates potential liquidity issues, limiting the company's ability to fund operations and strategic initiatives.

Increased Operating Expenses

Rising operating expenses could pressure margins and profitability, challenging Avadel's ability to maintain cost efficiency as it scales.

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 improved operational margins. The balance sheet is robust with low leverage, but profitability remains a key challenge. Cash flow management shows signs of improvement, but the negative free cash flow growth rate is a concern.

Income Statement

Avadel Pharmaceuticals has shown a significant improvement in revenue growth, with a 13.7% increase in the TTM period. The gross profit margin remains strong at 89.6%, indicating efficient cost management. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -1.3%. The EBIT and EBITDA margins have turned positive, reflecting operational improvements, but the overall profitability remains a concern.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.03, indicating low leverage and financial stability. The equity ratio is also strong, suggesting a solid capital structure. However, the return on equity is negative, highlighting ongoing profitability challenges. The company's financial position is stable, but improving profitability is crucial for future growth.

Cash Flow

The cash flow statement reveals a negative free cash flow growth rate of -120.7%, indicating cash flow challenges. However, the operating cash flow to net income ratio has improved, suggesting better cash conversion. The free cash flow to net income ratio is close to 1, showing efficient cash management despite the negative growth rate.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.07M	169.12M	27.96M	0.00	0.00	22.33M
Gross Profit	198.16M	153.84M	27.12M	-1.49M	-815.00K	16.59M
EBITDA	6.64M	-35.57M	-149.13M	-97.60M	-84.78M	-34.97M
Net Income	-2.92M	-48.83M	-160.28M	-137.46M	-77.33M	7.03M
Balance Sheet
Total Assets	187.16M	164.24M	164.70M	132.78M	247.26M	311.64M
Cash, Cash Equivalents and Short-Term Investments	81.55M	73.78M	105.11M	96.50M	157.22M	221.40M
Total Debt	2.73M	1.70M	35.38M	131.02M	145.00M	130.52M
Total Liabilities	96.45M	90.39M	76.96M	153.93M	169.02M	149.37M
Stockholders Equity	90.71M	73.85M	87.74M	-21.14M	78.24M	162.27M
Cash Flow
Free Cash Flow	5.27M	-46.91M	-128.51M	-71.02M	-77.34M	-48.83M
Operating Cash Flow	5.45M	-46.91M	-128.51M	-70.30M	-77.31M	-48.73M
Investing Cash Flow	23.91M	51.78M	-50.09M	79.70M	56.93M	-69.72M
Financing Cash Flow	3.73M	15.97M	135.34M	14.54M	263.00K	179.68M

Avadel Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 16.2 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 13.21, and above the 200-day MA of 9.95, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 69.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.64 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
AVDL	70 Outperform	$1.57B	―	-3.63%	―	132.35%	97.34%
COLL	65 Neutral	1.13B	34.51	15.62%	―	22.61%	-63.00%
EBS	61 Neutral	438.01M	3.35	-39.48%	―	-22.74%	0.00%
ESPR	60 Neutral	536.32M	-5.01	13.31%	―	-3.48%	36.57%
AQST	54 Neutral	685.92M	-8.22	89.60%	―	-24.38%	-94.72%
DERM	54 Neutral	192.06M	-18.68	-73.11%	―	-27.40%	-475.41%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Avadel Pharmaceuticals Corporate Events

Avadel Pharmaceuticals Signs Global License Agreement for Sleep Drug

On August 29, 2025, Avadel Pharmaceuticals entered into an exclusive global license agreement with XWPharma Ltd. to develop and commercialize valiloxybate, a GABAB receptor agonist, for sleep disorders such as narcolepsy and idiopathic hypersomnia. This agreement, excluding mainland China, Hong Kong, and Macau, involves a $20 million upfront payment to XWPharma, with potential milestone and royalty payments based on sales achievements. The development of valiloxybate is expected to enhance Avadel’s sleep medicine portfolio and leverage its existing infrastructure for efficient clinical and regulatory advancement.

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.

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.

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.