Oppenheimer’s Favorite Stocks For Next 12 Months: Top 32 Stock Picks

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4. Avadel Pharmaceuticals plc (NASDAQ:AVDL)

Share Price Upside: 49%

Number of Hedge Fund Investors In Q2 2024: 32

Average Analyst Share Price Target: $24.6

Avadel Pharmaceuticals plc (NASDAQ:AVDL) is a commercial stage specialty drug manufacturer that makes and sells a treatment for daytime sleepiness or narcolepsy called LUMRYZ. This provides it with a double edged sword, as while LUMRYZ being a commercially available drug enables Avadel Pharmaceuticals plc (NASDAQ:AVDL) to generate revenue, the lack of a diversified portfolio leaves the firm vulnerable to competition from others. As of June, 1,900 patients had started treatment with the medicine, and with the market estimated to sit at least 16,000 patients, Avadel Pharmaceuticals plc (NASDAQ:AVDL) could grow its revenue in the future. LUMRYZ enjoys a distinct advantage over competitors by virtue of being a drug that has to be taken only at bedtime. Avadel Pharmaceuticals plc (NASDAQ:AVDL) is also evaluating the drug’s efficacy in treating idiopathic hypersomnia, which could expand the drug’s future market. Oppenheimer states that “[w]ith a strong record of execution management is delivering, we see [Avadel] as undervalued at these levels.”

Avadel Pharmaceuticals plc (NASDAQ:AVDL)’s management shared details for the IH treatment during the Q2 2024 earnings call:

“As announced last week, we dosed our first patient in our Phase 3 REVITALYZ trial, evaluating LUMRYZ’s potential benefit in the adult IH population.

Based on feedback from physicians and experts in the field, we believe LUMRYZ has strong potential to improve care for those living with IH through its unique extended release formulation. In addition, we are expecting a potential approval decision by the FDA for our supplemental New Drug Application for LUMRYZ’s use in the pediatric narcolepsy population. The target action date is set for September 7. If approved, we believe LUMRYZ has the potential to address the needs of both pediatric narcolepsy patients, who could benefit from a full therapeutic dose of an oxybate given in a once-at-bedtime formulation; and the caregivers who currently have to awaken in the middle of the night, night after night, to administer a second dose of a first-generation oxybate to their children.”

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