12 Best Small Cap Pharma Stocks to Buy Now

8. Avadel Pharmaceuticals plc (NASDAQ:AVDL)

Number of Hedge Fund Holders: 27

Avadel Pharmaceuticals plc (NASDAQ:AVDL) is a biopharmaceutical company focused on developing medications for unmet medical needs, especially sleep disorders. Its lead product, Lumryz, is a once-nightly sodium oxybate formulation designed to treat excessive daytime sleepiness and cataplexy in adults with narcolepsy. The company generates revenue through product sales in the U.S. and licensing arrangements. The company also markets hospital-based sterile injectable drugs like Akovaz, Bloxiverz, and Vazculep, which contribute to its revenue.

Avadel Pharmaceuticals plc (NASDAQ:AVDL) reported strong financial results in Q3 2024, with net revenue rising to $50.0 million, up significantly from $7.0 million in the same period last year. Gross profit reached $43.9 million, reflecting strong margins, and the company achieved a positive adjusted EBITDA of $6.1 million. As of September 30, 2024, Avadel had $66 million in cash and equivalents.

Avadel Pharmaceuticals plc (NASDAQ:AVDL) has seen notable growth in the narcolepsy treatment market, with its lead product, Lumryz, showing strong adoption. By the end of Q3, 2,300 active patients were using Lumryz, and 700 new patients were added in the quarter alone. The FDA recently approved Lumryz for patients aged 7 and older, expanding its market potential. For 2025, the corporation expects Lumryz’s net product revenue to reach $240-$260 million, marking a 50% year-over-year growth. A recent favorable court ruling further strengthens the company’s market position and intellectual property rights.