Avadel Cuts Workforce, Optimizes Cost Structure To Support This

  • Avadel Pharmaceuticals plc AVDL announced its steps to explore every available pathway to accelerate the FDA approval of its lead drug candidate, FT218, before June 2023
  • Avadel has received and agreed upon what is expected to be a final label and is completing the last edits of the Risk Evaluation and Mitigation Strategy (REMS) with the FDA and expects to receive tentative approval of FT218.
  • Related: What Does HC Wainwright Have To Say On Avadel's Narcolepsy Candidate's Potential Approval?
  • The company is optimizing the cost structure to reduce quarterly cash operating expenses to $12.0 - $14.0 million.
  • A restructuring charge of between $3.0 - $4.0 million, comprised primarily of severance-related costs associated with a nearly 50% reduction in the workforce, is expected to be recorded in Q2. 
  • Avadel expects to report over $100.0 million of cash, cash equivalents, and marketable securities as of June 30, 2022.
  • Avadel estimates the current twice-nightly U.S. narcolepsy oxybate market is estimated at $1.8 billion, comprised of approximately 16,000 patients. 
  • The company estimates that 10,000 – 15,000 patients have discontinued their twice-nightly oxybate use in the last three years.
  • It believes that each year approximately 3,000 patients initiate oxybate treatment and expects this to grow by 25-50% with the introduction of FT218. Based on the estimated patient population, the potential market opportunity could be more than $3.0 billion annually.
  • Price Action: AVDL shares traded 15.30% higher at $2.70 during the premarket session on the last check Wednesday.

Posted In: Briefswhy it's movingBiotechNewsPenny StocksHealth CareFDAMoversTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.