• Avadel is like the 'Tesla' of narcolepsy treatments, offering a next-generation, improved version of an existing drug for the condition.
• A specialty pharmaceutical company, similar to a focused Vertex Pharmaceuticals (known for dominating cystic fibrosis), but with its prime focus on narcolepsy treatments.

• LUMRYZ: An FDA-approved, once-nightly extended-release oral suspension for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy.

As a pharmaceutical company, Avadel Pharmaceuticals (AVDL) sells its products, such as LUMRYZ, primarily to other companies within the healthcare supply chain rather than directly to individuals. Their major customers are typically pharmaceutical wholesalers and distributors who then supply pharmacies, hospitals, and other healthcare providers.

The major customer companies that Avadel Pharmaceuticals likely sells to include the "Big Three" pharmaceutical wholesalers in the United States, who are responsible for distributing the vast majority of prescription drugs:

• Cencora, Inc. (formerly AmerisourceBergen Corporation): COR
• Cardinal Health, Inc.: CAH
• McKesson Corporation: MCK

• Thermo Fisher Scientific Inc. (NYSE: TMO)
• AmerisourceBergen Corporation (NYSE: ABC)
• Cardinal Health, Inc. (NYSE: CAH)

Gregory J. Divis, Chief Executive Officer
Mr. Divis was appointed CEO in June 2019, after previously serving in several leadership roles within Avadel, including Chief Operating Officer, Executive Vice President, and Chief Commercial Officer. Prior to joining Avadel, he served as an Executive in Residence at Linden Capital Partners, a healthcare-focused private equity firm. He also served as President and Chief Executive Officer of Lumara Health, a specialty branded pharmaceutical company focused on women's health, which he led through a successful turnaround and transformation culminating in its sale to AMAG Pharmaceuticals. He also held general management, sales, marketing, and business development roles at Schering-Plough (acquired by Merck & Co., Inc.) and Sanofi-Aventis.

Thomas S. McHugh, Chief Financial Officer
Mr. McHugh was appointed Chief Financial Officer in December 2019. Prior to Avadel, he served as Senior Vice President of Finance of Ironshore Pharmaceuticals Inc. Before his time at Ironshore, Mr. McHugh was the Chief Financial Officer and Treasurer at Lumara Health, a specialty branded pharmaceutical company, where he supported key strategic initiatives including a new product launch, a restructuring, and a sale of the company. He also held positions at KTC Advisors, BearingPoint, Huttig Building Products, and began his career in public accounting at PricewaterhouseCoopers.

Susan Rodriguez, Chief Operating Officer
Ms. Rodriguez was appointed Chief Operating Officer in May 2025. Before joining Avadel, she served as Chief Commercial Officer of Ardelyx, where she led launches of first-in-class therapies and played a key role in advancing Ardelyx into a commercial company. Prior to Ardelyx, she served as Chief Executive Officer of Tolmar Pharmaceuticals, a specialty oncology company. She also held various commercial leadership positions at Abbott and the Abbott–Takeda joint venture, TAP Pharmaceuticals.

Polly Murphy, Chief Business Officer
Ms. Murphy was appointed Chief Business Officer in May 2024. Before joining Avadel, she was the Chief Business Officer of UroGen Pharma. She has over 30 years of experience in the biotech and pharmaceutical industry, including 12 years at Pfizer where her roles spanned business development, commercial development, and strategy across R&D and several commercial units.

Jennifer Gudeman, Pharm D, Senior Vice President, Medical and Clinical Affairs
Dr. Gudeman was appointed Vice President, Medical and Clinical Affairs, in December 2020. Prior to joining Avadel, she was Vice President, Medical Affairs, at AMAG Pharmaceuticals. Before AMAG Pharmaceuticals, she served as Director of Medical Affairs at Lumara Health, a specialty branded pharmaceutical company focused on women's health.

Avadel Pharmaceuticals (AVDL) faces several key risks to its business, primarily centered around the commercial success and regulatory landscape of its lead product, LUMRYZ (sodium oxybate).

1. Commercialization and Competition Risks: The company's business heavily depends on its ability to successfully commercialize LUMRYZ in the United States and other jurisdictions where it may obtain marketing approval. Challenges include establishing adequate sales, marketing, and distribution capabilities, as well as navigating potential reimbursement issues. Avadel operates in a highly competitive pharmaceutical and biotechnology industry, with intense competition from other companies developing narcolepsy treatments, including Jazz Pharmaceuticals (with Xyrem/Xywav) and potential new entrants like orexin-class therapies. This competition could significantly limit Avadel's ability to generate revenues from LUMRYZ, especially as the broader market for oxybate therapies may be shrinking.
2. Regulatory Compliance and REMS Risks: LUMRYZ, containing sodium oxybate, is classified as a Schedule III controlled substance in the U.S. and is subject to significant regulatory restrictions from agencies like the FDA and DEA. This includes the requirement for a Risk Evaluation and Mitigation Strategy (REMS) to ensure the drug's benefits outweigh the risks of misuse, abuse, and diversion. Any failure to comply with these stringent regulations and post-marketing requirements could result in substantial penalties, including the withdrawal of LUMRYZ from the market, which would materially and adversely affect Avadel's business, results of operations, and financial condition.
3. Intellectual Property Protection Risks: Avadel's ability to effectively compete and obtain commercial advantage relies on adequately protecting its intellectual property and proprietary information. While the company has achieved some legal victories regarding LUMRYZ's patents and orphan drug exclusivity, ongoing efforts to enforce these rights globally may prove inadequate. The risk of competition from generic manufacturers of sodium oxybate formulations and legal challenges related to patents, such as past disputes with Jazz Pharmaceuticals, could impact LUMRYZ's market exclusivity and revenue potential.

The emergence of orexin receptor agonists in advanced clinical development by competitors such as Jazz Pharmaceuticals (e.g., JZP-441) and Takeda (e.g., TAK-925). These therapies aim to address the underlying pathophysiology of narcolepsy by replacing or mimicking the deficient orexin neuropeptides, potentially offering a more fundamental and disease-modifying treatment compared to Avadel's LUMRYZ, which is a symptomatic treatment. The progression of these novel mechanisms of action through late-stage clinical trials represents a potential paradigm shift in narcolepsy treatment that could disrupt the market for existing symptomatic therapies.

Avadel Pharmaceuticals' primary product, Lumryz (also known as FT218), targets the narcolepsy market in the United States, with potential expansion into idiopathic hypersomnia.

Lumryz (FT218) for Narcolepsy

• Avadel Pharmaceuticals estimates the total potential patient population for Lumryz in the narcolepsy market to be greater than 30,000, representing an annual market opportunity of over $3.0 billion in the United States.
• The current market for narcolepsy treatment using twice-nightly oxybate is valued at approximately $1.8 billion, serving about 16,000 patients in the United States.
• There is an estimated population of over 50,000 oxybate-eligible narcolepsy patients in the United States.
• Earlier estimates indicated the orphan market targeted by FT218 was nearly $1.5 billion in 2018. The sole-source market for twice-nightly sodium oxybate was estimated to be between $1.1 billion and $1.125 billion in 2016.
• The overall narcolepsy drugs market is projected to increase by $1.60 billion from 2021 to 2026, with North America, particularly the U.S. and Canada, expected to contribute 44% of this growth.

Lumryz for Idiopathic Hypersomnia (IH)

• Avadel is also pursuing FDA approval for Lumryz to treat idiopathic hypersomnia in adults. The company believes this represents a "meaningful market opportunity" with "billion-dollar potential."

• Continued Growth and Adoption of LUMRYZ in Narcolepsy: LUMRYZ, Avadel's flagship once-at-bedtime oxybate for narcolepsy, is demonstrating strong market uptake and increased patient persistency. The company has reported significant quarter-over-quarter growth in net product revenue and patient count. For instance, in Q3 2024, LUMRYZ generated $50.0 million in net product revenue with 2,300 patients on treatment, including 700 new patients initiating therapy during the quarter. By Q3 2025, revenue surged to $77.47 million, with 3,400 patients treated. Analysts highlight LUMRYZ's growing patient count and robust adoption as key drivers for enhanced operating leverage and net margins. The once-at-bedtime dosing profile is also cited as sustaining a competitive edge.
• Expansion of LUMRYZ to Pediatric Narcolepsy Patients: The FDA's approval of LUMRYZ for the treatment of cataplexy or excessive daytime sleepiness in patients aged 7 years and older with narcolepsy, with Orphan Drug Exclusivity through October 2031, opens up a new patient population and is expected to alleviate treatment burdens for patients and caregivers. This expansion provides an additional avenue for revenue growth.
• Launch of LUMRYZ for Idiopathic Hypersomnia (IH): Avadel is actively advancing its Phase 3 REVITALYZ trial evaluating the efficacy and safety of LUMRYZ in idiopathic hypersomnia. Enrollment for this trial is on track for completion by the end of 2025, with top-line data expected in 2026, and a potential New Drug Application (NDA) filing thereafter. The successful launch of LUMRYZ for IH would significantly expand its addressable market.
• Increased Commercial Investments and Sales Force Expansion: To support the growing demand and adoption of LUMRYZ, Avadel has been strategically increasing its commercial investments. This includes expanding its sales force to 60 representatives and enhancing investments in healthcare provider (HCP) and patient-centered programs. These efforts aim to improve customer engagement, accelerate LUMRYZ's growth, and ensure efficient patient onboarding and conversion to reimbursed therapy.
• Introduction of a No-Salt, Extended-Release Oxybate: A new licensing agreement will add a no-salt, extended-release oxybate to Avadel's portfolio. This new product has the potential to broaden patient access, particularly for those with sodium sensitivity, and further diversify the company's oxybate offerings, thereby contributing to future revenue growth.

Share Repurchases

• Avadel Pharmaceuticals completed its last authorized share buyback program during the year ended December 31, 2018.

Share Issuance

• In March 2023, Avadel Pharmaceuticals completed a public offering of 10,000,001 ordinary shares (in the form of American Depositary Shares) and 4,705,882 Series B Non-Voting Convertible Preferred Shares, each priced at $8.50, generating approximately $125 million in gross proceeds.
• The number of outstanding shares increased by 55.68% in 2020, 43.52% in 2023, and 7.85% in 2024.
• In October 2025, Avadel granted inducement option awards for 161,600 ordinary shares to seven new employees under its 2021 Inducement Plan.

Inbound Investments

• On October 22, 2025, Avadel Pharmaceuticals announced a definitive agreement to be acquired by Alkermes plc for up to $2.1 billion, with the transaction expected to close in Q1 2026.
• The acquisition consideration includes $18.50 per share in cash payable at closing, and a contingent value right for a potential additional $1.50 per share, tied to FDA approval of Lumryz for idiopathic hypersomnia in adults by the end of 2028.
• Avadel received a $90 million payment from Jazz Pharmaceuticals as part of a global settlement resolving litigation over Lumryz, announced on October 22, 2025.

Outbound Investments

• In March 2022, Avadel Pharmaceuticals acquired Éclat Pharmaceuticals.
• In the third quarter of 2025, Avadel licensed valiloxybate from XWPharma, which included an upfront payment of $15 million, with an additional $5 million due in the fourth quarter of 2025.

Capital Expenditures

• For the last 12 months preceding November 2025, Avadel Pharmaceuticals reported capital expenditures of -$190,000.
• In February 2025, Avadel decreased its office space from 24,236 square feet to 17,065 square feet after a lease expiration, with the amended lease expiring in January 2029.
• The company plans to make additional investments in LUMRYZ for sales force expansion and patient and physician marketing programs to accelerate its launch.