UPDATE: Stifel Downgrades Avadel Pharmaceuticals (AVDL) to Hold

May 26, 2022 12:11 PM EDT
Get Alerts AVDL Hot Sheet
Price: $2.31 -4.94%

Rating Summary:
    9 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 12 | New: 20
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(Updated - May 26, 2022 12:13 PM EDT)

Stifel analyst Paul Matteis downgraded Avadel Pharmaceuticals (NASDAQ: AVDL) from Buy to Hold with a price target of $2.00 (from $9.00).

The analyst commented, "We are downgrading AVDL to Hold following news that the company needs to certify to JAZZ's REMS patent, pushing a launch until later 2023/2024 at the earliest. While we had seen increasing risk to a timely FT218 approval, and we recently reduced our probability-of-success, this development--specifically needing to certify to the REMS patent--is not what we were expecting. AVDL shares have already traded down considerably on the FDA action delay and perceived risk, and they're down ~50% this morning. That said, while the market cap here is arguably a bargain for still plausibly approvable commercial asset, even if approved, launching this drug will require considerable cash, AVDL has a convert that's due in 2023, and next year the oxybate market will be even more competitive/challenging, with an AG and additional Xywav conversion. Full Xyrem genericization comes 2026; while AVDL has some time, FT218's window here is now narrower too."

For an analyst ratings summary and ratings history on Avadel Pharmaceuticals click here. For more ratings news on Avadel Pharmaceuticals click here.

Shares of Avadel Pharmaceuticals closed at $3.38 yesterday.

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