Avadel Pharmaceuticals Reports Third Quarter 2025 Financial Results and Provides Corporate Update

Core Insights - Avadel Pharmaceuticals reported a significant increase in patient enrollment for LUMRYZ, with approximately 3,400 patients treated as of September 30, 2025, representing a 48% increase from the previous year [1] - The company announced a global settlement with Jazz Pharmaceuticals, resolving all litigation and allowing Avadel to commercialize LUMRYZ for additional indications starting March 1, 2028 [9] - Alkermes is set to acquire Avadel for a total transaction value of approximately $2.1 billion, with the deal expected to close in the first quarter of 2026 [2][3] Financial Performance - Avadel generated $77.5 million in net product revenue from LUMRYZ in Q3 2025, marking a 55% increase from $50.0 million in Q3 2024 [10] - Gross profit for Q3 2025 was $81.6 million, or 105% of net product revenue, compared to $43.9 million, or 88% of net product revenue, in the same period of 2024 [11] - Research and development expenses surged to $27.0 million in Q3 2025, up from $3.8 million in Q3 2024, primarily due to upfront license fees related to valiloxybate [12] Corporate Developments - The REVITALYZ™ study, a Phase 3 trial for LUMRYZ, is on track for patient enrollment completion by the end of 2025 [6] - Avadel has strengthened its sleep medicine portfolio by acquiring an exclusive license for valiloxybate from XWPharma, with an upfront payment of $15 million made in Q3 2025 [7] - The company presented new data at World Sleep 2025 supporting LUMRYZ's efficacy in treating narcolepsy across various patient segments [8] Settlement with Jazz Pharmaceuticals - The settlement agreement with Jazz includes the dismissal of lawsuits and upfront cash consideration for Avadel, along with royalty rights for Jazz on LUMRYZ sales from October 1, 2025, to February 18, 2036 [9]