Analyst Bumps Up Price Target For Avadel Pharmaceuticals After Favorable Patent Ruling

Last Friday, Delaware District Court granted Avadel Pharmaceuticals plc's AVDL motion to delist the ‘963 Xyrem REMS patent.
Needham says a favorable patent ruling clears a key hurdle for Lumryz, and Q3 FY23 is the most likely timeframe for full launch (vs. 4Q FY23 previously). The analyst has raised the price target to $9 from $8 with a Buy rating.
Related: Avadel Pharmaceuticals Announces Favorable Ruling Regarding Sleep Disorder Drug Patent.
Final approval of Lumryz should no longer be gated by patent expiry (June 17, 2023).
Needham writes that hiring the full sales force and staffing will take the most time to accomplish, and therefore Avadel will be executing more of a soft launch in 1H23, with full launch readiness more likely in 3Q23.
On financing, the management indicated that it had had several discussions exploring sources of committed capital. The analyst sees the final approval as a logical time point for this to occur.
Price Action: AVDL shares are up 2.12% at $8.20 on the last check Monday.

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