Avadel Pharmaceuticals (AVDL) AI Stock Analysis

• Market Cap: $891.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 252.64%
• EPS Growth: 85.10%
• Country: US
• Employees: 188
• Sector: Healthcare
• Sector Strength: 44
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.05
• Shares Outstanding: 96,892,980
• 10 Day Avg. Volume: 2,127,405
• 30 Day Avg. Volume: 1,444,012
• PEG Ratio: -0.04
• Price to Book (P/B): -20.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.06
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: -2.37
• 1Y Price Target: $18.00
• Price Target Upside: 103.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: $10.00 ▲(12.99%Upside)

Avadel Pharmaceuticals' stock score is driven by strong growth prospects in LUMRYZ adoption and favorable legal outcomes. However, persistent profitability challenges and negative valuation metrics weigh on the overall score. Recent corporate events and positive earnings sentiment contribute positively, but financial and technical factors present areas for improvement.

Positive Factors

Market Expansion

Management's expansion efforts, such as increasing the sales force and support teams, have led to rising patient demand and market share for Lumryz.

Regulatory Approval

Avadel Pharmaceuticals announced that LUMRYZ (sodium oxybate extended-release) has received Orphan Drug Designation (ODD) from the FDA for the treatment of idiopathic hypersomnia (IH).

Sales Growth

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

Negative Factors

Financial Stability

The company has an annualized cash burn of $180 million with less than one year of cash left.

Investor Sentiment

Investors remain skeptical of the key metrics for the number of Lumryz patients and sales projections by the end of 2025.

Market Risks

Short interest in the company's stock is 10.6% of the float.

Avadel Pharmaceuticals Business Overview & Revenue Model

Company Description

Avadel Pharmaceuticals (AVDL) is a publicly traded biopharmaceutical company focused on developing and commercializing innovative medications for conditions with significant unmet medical needs. The company primarily concentrates on the therapeutic areas of sleep medicine, offering solutions that aim to improve the quality of life for patients. Avadel is known for its flagship product, LUMRYZ™, which is designed to address excessive daytime sleepiness in patients with narcolepsy.

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 demonstrates strong revenue growth and maintains a high gross profit margin. However, persistent profitability challenges and negative cash flows weigh down the financial performance score. The balance sheet shows low leverage, but the negative return on equity indicates the need for improved profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	194.45M	169.12M	27.96M	0.00	0.00	22.33M
Gross Profit	175.12M	153.84M	27.12M	-1.49M	-815.00K	16.59M
EBITDA	-14.45M	-35.57M	-149.13M	-97.60M	-84.78M	-34.97M
Net Income	-26.41M	-48.83M	-160.28M	-137.46M	-77.33M	7.03M
Balance Sheet
Total Assets	167.95M	164.24M	164.70M	132.78M	247.26M	311.64M
Cash, Cash Equivalents and Short-Term Investments	66.48M	73.78M	105.11M	96.50M	157.22M	221.40M
Total Debt	2.90M	1.70M	35.38M	131.02M	145.00M	130.52M
Total Liabilities	93.88M	90.39M	76.96M	153.93M	169.02M	149.37M
Stockholders Equity	74.07M	73.85M	87.74M	-21.14M	78.24M	162.27M
Cash Flow
Free Cash Flow	-25.43M	-46.91M	-128.51M	-71.02M	-77.34M	-48.83M
Operating Cash Flow	-25.24M	-46.91M	-128.51M	-70.30M	-77.31M	-48.73M
Investing Cash Flow	42.71M	51.78M	-50.09M	79.70M	56.93M	-69.72M
Financing Cash Flow	3.47M	15.97M	135.34M	14.54M	263.00K	179.68M

Avadel Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVDL, the sentiment is Negative. The current price of 8.85 is below the 20-day moving average (MA) of 9.49, below the 50-day MA of 9.13, and below the 200-day MA of 10.05, indicating a bearish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 26.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVDL.

Avadel Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COLL	72 Outperform	$962.02M	24.67	19.23%	―	17.17%	-51.97%
AVDL	63 Neutral	$891.42M	―	-34.65%	―	252.64%	85.10%
EBS	54 Neutral	$344.66M	―	-21.63%	―	-18.56%	76.88%
DERM	54 Neutral	$166.33M	―	-48.14%	―	-29.69%	-105.88%
AQST	53 Neutral	$322.82M	―	77.48%	―	5.29%	-37.31%
Sector *	51 Neutral	$7.44B	0.40	-61.90%	2.33%	17.14%	1.55%
ESPR	46 Neutral	$196.93M	―	23.44%	―	12.99%	17.78%

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.

Avadel Highlights Improved Demand for LUMRYZ at Conference

On April 8, 2025, Avadel Pharmaceuticals provided an update at the Needham Virtual Healthcare Conference, highlighting improved patient demand metrics for their narcolepsy medication, LUMRYZ, in Q1 2025 compared to Q4 2024. The company is on track with its REVITALYZ Phase 3 trial and has initiated patent infringement lawsuits against Jazz Pharmaceuticals. Avadel expects sustainable positive cash flow in 2025 and has strengthened its supply chain to mitigate potential impacts from U.S. tariff policy changes.