Net loss [USD, thousands]

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Proceeds from sales of marketable securities [USD, thousands]

Purchases of marketable securities [USD, thousands]

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Proceeds from issuance of shares off the at-the-market offering program [USD, thousands]

Proceeds from stock option exercises and employee share purchase plan [USD, thousands]

Net cash provided by financing activities [USD, thousands]

Effect of foreign currency exchange rate changes on cash and cash equivalents [USD, thousands]

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Cash and cash equivalents at January 1 [USD, thousands]

Cash and cash equivalents at March 31 [USD, thousands]

206d17b306c46a35c00e9935b31b5d8967d17e5a9a28ed2feb91353790dc2feb

**Avadel Pharmaceuticals experienced a sharp drop in cash and cash equivalents in Q4 2023 primarily because the company used **$26 million** in net cash for operations and repaid **$22 million** on its convertible notes, which together resulted in a total reduction of **$48 million** during the quarter.  **[AVDL_3376298_4]** **

What drove the sharp drop in Cash and cash equivalents in Q4 2023?

Based on the provided documents, there isn’t any explicit explanation for a significant decline in total assets in Q4 2023 compared to Q3 2023. One document discusses the reasons behind the increase in total assets from **$132,785 thousand** as of December 31, 2022, to **$164,698 thousand** as of December 31, 2023—including increases in marketable securities, accounts receivable and inventories, and prepaid expenses and other current assets.  **[0001104659-24-030226_tm247844d1_ex99-1.htm:6]** **[0001012477-24-000008_avdl-20231231.htm:121]**  However, no details are given regarding the decline from the Q3 total assets of **203,100 thousand** to the Q4 total assets of **164,698 thousand**.  **[0001012477-23-000023_avdl-20230930.htm:5]** **[0001012477-24-000021_avdl-20240930.htm:5]** 

Why did Total assets decline significantly in Q4 2023?

The documents do not provide any specific explanation for why Q1 2024’s total liabilities of **$89,515 thousand** are roughly half of Q1 2023’s **$178,905 thousand**. The only explanation available discusses changes within Q1 2024—namely increases in accounts payable, accrued expenses, and the royalty financing obligation between December 31, 2023, and March 31, 2024—not a reduction compared to Q1 2023.  **[0001012477-23-000012_avdl-20230331.htm:5]** **[0001012477-24-000012_avdl-20240331.htm:5]** 

What explains the halving of Total liabilities in Q1 2024?

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The significant revenue jump in Q4 2023 was driven by the **commercial launch of LUMRYZ**. This launch, which followed the FDA approval on **May 1, 2023**, led to the recognition of **$19.5 million** in net product revenue, a dramatic increase compared to previous periods. Key factors included the **successful launch of LUMRYZ**, strong **patient uptake** with over **1,000 new patients** initiating therapy and more than **1,900 patients** enrolling in support services, as well as improved **market access** through contracts with major PBM-owned GPOs.  **[0001104659-24-030226_tm247844d1_ex99-1.htm:1]** **[0001104659-24-030226_tm247844d1_ex99-1.htm:5]** **[0001104659-24-002062_tm242268d1_ex99-1.htm:0]** 

What drove the significant revenue jump in Q4 2023?

The dramatic reduction in **operating loss** in Q3 2024 was primarily driven by a **substantial increase in net product revenue** from the successful commercial launch of **LUMRYZ**, which boosted revenue significantly, and by a corresponding **rise in gross profit**. Additionally, although there was a slight increase in operating expenses, it was comparatively moderate and did not offset the gains from increased revenue and gross profit, resulting in a significant overall improvement in operating loss.  **[0001012477-24-000021_avdl-20240930.htm:4]** **[0001012477-24-000021_avdl-20240930.htm:32]** **[0001012477-24-000021_avdl-20240930.htm:30]** 

What contributed to the dramatic reduction in operating loss in Q3 2024?

Avadel Pharmaceuticals nearly broke even on a per-share basis in Q3 2024 because the company experienced **strong revenue growth** and **substantial cost improvements**. The commercial launch of **LUMRYZ** boosted net product revenue from **$7.0 million** in Q3 2023 to **$50.0 million** in Q3 2024, which, along with a rise in gross profit, led to a sharp reduction in the overall net loss—from **$(36.3) million** to **$(2.6) million**. Additionally, the increase in the weighted average number of shares outstanding diluted the loss per share, narrowing the **Net Loss per Share – Basic** from **$(0.41)** to **$(0.03)**, essentially bringing it near a break-even point.  **[0001012477-24-000021_avdl-20240930.htm:4]** **[0001012477-24-000021_avdl-20240930.htm:32]** **[0001012477-24-000021_avdl-20240930.htm:16]** 

How did the company nearly break even on a per-share basis in Q3 2024?

The sharp decrease in net loss in Q3 2024 was primarily driven by **a significant increase in net product revenue** due to the commercial launch of **LUMRYZ**, which boosted overall sales, **improvements in gross profit** resulting from both higher revenue and enhanced cost efficiencies, and a **notable reduction in operating loss** (with operating losses decreasing from over **$(35,000)** to approximately **$(327)**). Additionally, the absence of the **$13,129 loss on extinguishment of debt** seen in the previous period further contributed to the improved net loss, while increased patient uptake for LUMRYZ supported revenue growth overall.  **[0001012477-24-000021_avdl-20240930.htm:32]** **[0001012477-24-000021_avdl-20240930.htm:4]** **[0001104659-24-116323_tm2427974d1_ex99-1.htm:0]** 

What factors drove the sharp decrease in net loss in Q3 2024?

8382819f65253279da13e8517c7ff18c70c0ee5fe87d9443e2814e0d806b1070

f3f620c38fb2c491600177a3c32997315d90f5c3010005b47f72ca71808ee915

Net Product Revenue (USD, thousands)

Cost of Products Sold (USD, thousands)

Gross Profit (USD, thousands)

Research and Development Expenses (USD, thousands)

Selling, General and Administrative Expenses (USD, thousands)

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Net Loss per Share - Diluted (USD)

Weighted Average Number of Shares Outstanding - Basic (thousands)

Weighted Average Number of Shares Outstanding - Diluted (thousands)

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06e3d65da6a2b3e0de4308cf51678b20923c3be8c144649858f52f6a728d175e

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LUMRYZ

- Caremark

- Accredo

- Optum

Bloxiverz

Vazculep

Akovaz

Other

Noctiva

License Revenue

Total Revenue

bf1415b87ff745e36df54eb6094c74a1b58e5eb7ee882d361c509de75934f743

United States

France

Ireland

fcdea08556c6a60ca5cd2f7dc90cb89e653dc62d4e3a48014490226d8cdd6675

AVADEL PHARMACEUTICALS (AVDL)

Financials