Avadel Pharmaceuticals plc Q3 FY2024 earnings call

• LUMRYZ launch metrics: 2,300 active patients as of Sept 30, 700 new patients in Q3. - Patient segments: switch patients (largest new starts), new-to-oxybate (fastest-growing), previously treated/discontinued. - Pediatric approval for LUMRYZ in narcolepsy pediatric patients seven years and older. - Initiation of Phase 3 REVITALYZ study for idiopathic hypersomnia (IH). - Favorable court decision in DC regarding LUMRYZ's approval. - Investments in patient support: doubling nurse care navigators, increasing patient engagement cadence, expanding field team, and targeting moderate/low oxybate prescribers and new oxybate writers.

In the third quarter, Avadel reported net revenue of $50 million. As of September 30th, there were 2,300 active patients on LUMRYZ therapy, and 700 patients initiated LUMRYZ in Q3. The revenue contribution comes from the launch of LUMRYZ. Patient segments include switch from oxybate (largest new starts), new-to-oxybate (fastest-growing segment), and previously treated/discontinued patients.

• Tom mentioned Q4 expectations considering seasonality factors (fewer shipping days, patient visits) and continued patient demand for LUMRYZ across segments. - Expectations of cash flow being positive during Q4, with considerations of seasonal impacts and patient demand dynamics.

• Lower persistency rates in new-to-oxybate patients due to lack of prior oxybate experience. - Litigation status including ongoing patent trial (post-trial motions and royalty rate briefing), IH injunction appeal (oral arguments scheduled for Feb 2025), and antitrust action against Jazz (jury trial set for Nov 2025).

Q: Andrew Tsai asked about patient trends, Q4 growth, and share gain.

A: Greg and Richard discussed strong demand for LUMRYZ, seasonality factors, and continued share gain from switch and new patients.

Q: François Brisebois asked about new-to-oxybate insurance, sales force expansion, and litigation.

A: Richard talked about insurance coverage and sales team expansion, while Greg discussed litigation status including ongoing patent trial, IH injunction appeal, and antitrust action.

Q: Oren Livnat asked about new patient discontinuation, reimbursement, and net value per patient.

A: Richard and Tom discussed discontinuation due to lack of expectations, reimbursement dynamics, and net value per patient being around $100,000 annually per patient.

Q: Ami Fadia asked about patient mix, switch dynamics, and oxybate market growth.

A: Greg and Richard discussed patient mix, sources of switch patients, and indications of oxybate market growth through new prescribers and expanded patient base.

Q: David Amsellem asked about NT1/NT2 mix and orexin agonists.

A: Richard and Jennifer Gudeman discussed NT1/NT2 mix (30% NT1, 70% NT2) and the potential impact of orexin agonists, emphasizing LUMRYZ's role in avoiding middle-of-the-night dosing and complementing orexin therapies.