Avadel Pharmaceuticals plc (NASDAQ:AVDL) Q4 2023 Earnings Call Transcript

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Matt Kaplan: Sounds good. Thanks a lot.

Gregory Divis: Thanks, Matt.

Operator: One moment for the next question. The next question comes from Oren Livnat with H.C. Wainwright. Your line is open.

Oren Livnat: Thanks. Congrats on the fast ramp here. I have a couple. First, I think, I’m tense in the queue here, and nobody’s asked about the elephant in the room, so I will. Can you talk about your statement up front about your confidence in that, whatever the jury decides, presumably any day now, your confidence in the potential of LUMRYZ? Why are you confident about the outcomes? And what do you think the scenarios could be going forward? And, also, do you have any update on timing around the APA lawsuit that are obviously publicly available or whatever color you might have on that front? And then I have a follow up. Thanks.

Gregory Divis: So, the answer to your first question, Oren, is really easy, which is we’re just not going to comment on it at this stage. That will become clear in the fairly near future from that standpoint, pending the jury’s final decision. So, I would just ask you to be patient with us on that regard. The status of the APA case, I think that hearing has been moved to April 9th, so that will take place on April 9th in the court in the District of Columbia. So —

Oren Livnat: Okay. And as I try to square your commentary and your ramp with Jazz’s guidance, it seems like market growth must be an important variable there. They say you’re not growing the market that much yet. I think, you’ve highlighted certainly that obviously most of your adds are from switchers, which is as expected. But going forward through 2023 and — or 2024 and beyond, how confident are you that you can grow the market more and accelerate that growth as your product’s been out there longer with regards to bringing back prior discontinuers and whether those patients are identified to you or your customers and new diet patients being added?

Gregory Divis: Yes. Richard, do you want to start on that?

Richard Kim: Yes. No. Sure, Oren. Like I said — we said before, what we sort of see already right now to your point is the previously discontinued segment is real, and we’re seeing good representation of that within our RYZUP numbers and patients being shipped product already. We’re getting new prescribers who have never written for an oxybate previous to LUMRYZ being in the marketplace before as well. And here’s the one thing that’s also a little bit challenging right now. We’ve candidly worked hard to sort of keep our data to ourselves. So, when other companies are looking at data from claims, they may not also be seeing the whole picture at this stage as well. So — and what we see internally is some strong early signs that people are going beyond where twice nightly oxybates were being used previously — previous to LUMRYZ being in the marketplace.

Oren Livnat: That’s helpful. And just one last follow up. Can you comment at all on, I guess, net pricing or gross to nets, I guess, in fourth quarter or annualized in general now going forward?

Gregory Divis: Tom?

Thomas McHugh: Yes. Hi, Oren. Yes. So, we previously have guided to $120,000 net revenue per patient per year. And as I’ve described in the past, we’ll get there when we reach a critical mass, which I would define as more patients continuing on therapy than new patients coming on to therapy. With that said, I think we’re rapidly approaching that point and looking forward to providing more updates on that in the future.

Oren Livnat: All right. Thanks.

Gregory Divis: Thank you.

Oren Livnat: I’ll follow up with you guys after.

Operator: I show no further questions at this time. So, this will conclude our Q&A session. I would now like to turn the call back to Greg Divis for closing remarks.

Gregory Divis: Thank you, and thanks, everyone, for your time for joining us today on our call, and we wish you all a great day, and we certainly look forward to providing more updates here in the very near future. Thanks.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.

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