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Avadel Pharmaceuticals Provides Corporate Update and Reports Second Quarter 2023 Financial Results
-- Successfully commenced
-- Received final FDA approval for LUMRYZ with orphan drug exclusivity granted through
-- Significant early progress on payor coverage, prescriber certifications and patient enrollments --
-- Management to host a conference call today at
“This past quarter has been transformative for our organization, underscored by
Second Quarter and Recent Company Highlights
LUMRYZ Commercial Updates:
- During the first two months of the
U.S.commercial launch of LUMRYZ:
- Initiated sales of LUMRYZ to the specialty pharmacies in the Company’s distribution network.
- Greater than 1,000 health care providers have completed the LUMRYZ REMS certification process, which enables them to prescribe LUMRYZ to patients.
- Greater than 400 patients have enrolled in Avadel’s RYZUP™ patient support services to begin the process of getting LUMRYZ prescriptions fulfilled and shipped.
- Secured Express Scripts (ESI) coverage on the National Preferred Formulary, effective
- With final approval on
May 1, the FDA also found LUMRYZ to be clinically superior to currently marketed twice-nightly oxybate products and granted LUMRYZ seven years of Orphan Drug Exclusivity.
- In particular, FDA found that LUMRYZ makes a major contribution to patient care over currently available, twice-nightly oxybate products by providing a once-nightly dosing regimen that does not disrupt or fragment sleep, whereas twice-nightly oxybates necessitate a nocturnal awakening to take a second dose, which disrupts sleep architecture in patients with known sleep disorders. The seven-year market exclusivity for LUMRYZ began on the date of FDA approval, May 1, 2023.
- In June, announced publication of data describing clinician preferences among oxybate treatments for patients with narcolepsy.
- The discrete choice experiment indicated that among sleep clinicians, the frequency of oxybate treatment dosing was the most important driver for overall product choice, improved patient quality of life, and reduced patient anxiety and stress.
- Once-nightly dosing was preferred over twice-nightly dosing, and these data underscore the unmet need for an oxybate treatment that does not require middle-of-the-night dosing.
- In May, announced new data supporting the clinical profile for LUMRYZ at SLEEP 2023, the 37th annual joint meeting of the
American Academy of Sleep Medicineand the Sleep Research Society.
- With 12 posters presented, including 6 oral presentations, the Company highlighted its leadership in the narcolepsy space, and the data adds to the growing body of evidence demonstrating positive clinical benefit and patient preference of once-at-bedtime LUMRYZ.
- In June, for the third year in a row, Avadel was the lead sponsor of the Academy of Sleep Medicine Foundation’s 2023
Young Investigators Research Forum.
- In May, post-hoc analysis of Phase 3 REST-ON Trial of LUMRYZ (sodium oxybate) published in SLEEP. The paper, titled “Efficacy of Once-Nightly Sodium Oxybate (FT218) in Narcolepsy Type 1 and Type 2: Post Hoc Analysis From the Phase 3 REST-ON Trial,” can be accessed here. By stratifying NT1 and NT2 at baseline in the study design, the REST-ON data provides insight that LUMRYZ improves excessive daytime sleepiness and disrupted nighttime sleep in either narcolepsy type.
- On track to submit sNDA for LUMRYZ in pediatric narcolepsy population for treatment of cataplexy or excessive daytime sleepiness (EDS) in the second half of 2023.
Overview of Second Quarter Results
R&D expenses were
SG&A expenses were
Net loss for the quarter ended
Cash, cash equivalents and marketable securities were
A live audio webcast of the call be accessed by visiting the investor relations section of the Company’s website, www.avadel.com. A replay of the webcast will be archived on Avadel’s website for 90 days following the event. Participants may register for the conference call here and are advised to do so at least 10 minutes prior to joining the call.
About LUMRYZ™ (sodium oxybate) for extended-release oral suspension
LUMRYZ, is an extended-release sodium oxybate medication approved by the FDA on
The FDA approval of LUMRYZ was supported by results from REST-ON, a randomized, double-blind, placebo-controlled, pivotal Phase 3 trial in adults with narcolepsy. LUMRYZ demonstrated statistically significant and clinically meaningful improvements in the three co-primary endpoints: EDS, clinicians’ overall assessment of patients’ functioning (CGI-I) and cataplexy attacks, for all three evaluated doses when compared to placebo.
With its approval, the FDA also granted seven years of Orphan Drug Exclusivity to LUMRYZ for the treatment of cataplexy or EDS in adults with narcolepsy due to a finding of clinical superiority of LUMRYZ relative to currently available oxybate treatments. In particular, the FDA found that LUMRYZ makes a major contribution to patient care over currently available, twice-nightly oxybate products by providing a once-nightly dosing regimen that avoids nocturnal arousal to take a second dose.
IMPORTANT SAFETY INFORMATION
|WARNING: Taking LUMRYZ™ (sodium oxybate) with other central nervous system (CNS) depressants, such as medicines used to make you fall asleep, including opioid analgesics, benzodiazepines, sedating antidepressants, antipsychotics, sedating anti-epileptic medicines, general anesthetics, muscle relaxants, alcohol or street drugs, may cause serious medical problems, including trouble breathing (respiratory depression), low blood pressure (hypotension), changes in alertness (drowsiness), fainting (syncope) and death.
The active ingredient of LUMRYZ (sodium oxybate) is a form of gamma hydroxybutyrate (GHB), a controlled substance. Abuse or misuse of illegal GHB alone or with other CNS depressants (drugs that cause changes in alertness or consciousness) have caused serious side effects. These effects include seizures, trouble breathing (respiratory depression), changes in alertness (drowsiness), coma and death. Call your doctor right away if you have any of these serious side effects.
Because of these risks, LUMRYZ is available only by prescription and filled through certified pharmacies in the LUMRYZ REMS. You must be enrolled in the LUMRYZ REMS to receive LUMRYZ. Further information is available at www.LUMRYZREMS.com or by calling 1-877-453-1029.
LUMRYZ (sodium oxybate) for extended-release oral suspension is a prescription medicine used to treat the following symptoms in adults with narcolepsy:
- sudden onset of weak or paralyzed muscles (cataplexy)
- excessive daytime sleepiness (EDS)
It is not known if LUMRYZ is safe and effective in people less than 18 years of age.
Do not take LUMRYZ if you take other sleep medicines or sedatives (medicines that cause sleepiness), drink alcohol or have a rare problem called succinic semialdehyde dehydrogenase deficiency.
Keep LUMRYZ in a safe place to prevent abuse and misuse. Selling or giving away LUMRYZ may harm others and is against the law. Tell your doctor if you have ever abused or been dependent on alcohol, prescription medicines or street drugs.
Anyone who takes LUMRYZ should not do anything that requires them to be fully awake or is dangerous, including driving a car, using heavy machinery or flying an airplane, for at least six (6) hours after taking LUMRYZ. Those activities should not be done until you know how LUMRYZ affects you.
Falling asleep quickly, including while standing or while getting up from the bed, has led to falls with injuries that have required some people to be hospitalized.
LUMRYZ can cause serious side effects, including the following:
- Breathing problems, including slower breathing, trouble breathing and/or short periods of not breathing while sleeping (e.g., sleep apnea). People who already have breathing or lung problems have a higher chance of having breathing problems when they take LUMRYZ.
- Mental health problems, including confusion, seeing or hearing things that are not real (hallucinations), unusual or disturbing thoughts (abnormal thinking), feeling anxious or upset, depression, thoughts of killing yourself or trying to kill yourself, increased tiredness, feelings of guilt or worthlessness and difficulty concentrating. Tell your doctor if you have or had depression or have tried to harm yourself. Call your doctor right away if you have symptoms of mental health problems or a change in weight or appetite.
- Sleepwalking. Sleepwalking can cause injuries. Call your doctor if you start sleepwalking.
Tell your doctor if you are on a salt-restricted diet or if you have high blood pressure, heart failure or kidney problems. LUMRYZ contains a lot of sodium (salt) and may not be right for you.
The most common side effects of LUMRYZ in adults include nausea, dizziness, bedwetting, headache and vomiting. Your side effects may increase when you take higher doses of LUMRYZ. LUMRYZ can cause physical dependence and craving for the medicine when it is not taken as directed. These are not all the possible side effects of LUMRYZ.
For more information, ask your doctor or pharmacist. Call your doctor for medical advice about side effects.
You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch, or call 1-800-FDA-1088.
Please see full Prescribing Information, including BOXED Warning.
Cautionary Disclosure Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements relate to our future expectations, beliefs, plans, strategies, objectives, results, conditions, financial performance, prospects or other events. Such forward-looking statements include, but are not limited to, expectations regarding the potential therapeutic benefit of LUMRYZ; the Orphan Drug Exclusivity for LUMRYZ and potential benefits resulting from such designation; the success of the commercialization for LUMRYZ; expectations regarding the potential market impact of LUMRYZ; the anticipated market availability and sales opportunity of LUMRYZ; the potential expansion of LUMRYZ into the pediatric narcolepsy population and expected timing thereof; the Company’s anticipated financial condition, expenses, uses of capital and other future financial results. In some cases, forward-looking statements can be identified by the use of words such as “will,” “may,” “could,” “believe,” “expect,” “look forward,” “on track,” “guidance,” “anticipate,” “estimate,” “project,” “next steps” and similar expressions and the negatives thereof (if applicable).
The Company’s forward-looking statements are based on estimates and assumptions that are made within the bounds of our knowledge of our business and operations and that we consider reasonable. However, the Company’s business and operations are subject to significant risks, and, as a result, there can be no assurance that actual results and the results of the company’s business and operations will not differ materially from the results contemplated in such forward-looking statements. Factors that could cause actual results to differ from expectations in the Company’s forward-looking statements include the risks and uncertainties described in the “Risk Factors” section of Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended
Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. Accordingly, you should not place undue reliance on forward-looking statements. The Company does not undertake any obligation to publicly update or revise our forward-looking statements, except as required by law.
Stern Investor Relations, Inc.
|CONDENSED CONSOLIDATED STATEMENTS OF LOSS|
|(In thousands, except per share data)|
|Three Months Ended
||Six Months Ended
|Net product revenue||$||1,496||$||—||$||1,496||$||—|
|Cost of products sold||36||—||36||—|
|Research and development expenses||4,223||4,541||8,053||11,532|
|Selling, general and administrative expenses||46,778||21,804||71,246||43,439|
|Total operating expense||51,001||29,937||79,299||58,563|
|Investment and other income, net||623||192||816||88|
|Loss on extinguishment of debt||(13,129||)||—||(13,129||)||—|
|Loss before income taxes||(64,342||)||(33,251||)||(95,706||)||(63,998||)|
|Income tax provision (benefit)||90||30,193||(490||)||25,870|
|Net loss per share – basic||$||(0.83||)||$||(1.07||)||$||(1.35||)||$||(1.52||)|
|Net loss per share – diluted||(0.83||)||(1.07||)||(1.35||)||(1.52||)|
|Weighted average number of shares outstanding - basic||77,246||59,037||70,603||58,931|
|Weighted average number of shares outstanding - diluted||77,246||59,037||70,603||58,931|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(In thousands, except per share data)|
|Cash and cash equivalents||$||49,985||$||73,981|
|Accounts receivable, net||1,775||—|
|Research and development tax credit receivable||974||2,248|
|Prepaid expenses and other current assets||6,532||2,096|
|Total current assets||171,230||100,843|
|Property and equipment, net||715||839|
|Operating lease right-of-use assets||1,235||1,713|
|Research and development tax credit receivable||420||1,232|
|Other non-current assets||10,540||11,322|
|LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)|
|Current portion of long-term debt||$||20,851||$||37,668|
|Current portion of operating lease liability||783||960|
|Other current liabilities||500||1,941|
|Total current liabilities||51,502||55,793|
|Long-term operating lease liability||490||780|
|Other non-current liabilities||5,792||5,743|
|Shareholders’ equity (deficit):|
|Preferred shares, nominal value of
|Ordinary shares, nominal value of
|Additional paid-in capital||848,626||589,783|
|Accumulated other comprehensive loss||(25,943||)||(26,341||)|
|Total shareholders’ equity (deficit)||143,192||(21,145||)|
|Total liabilities and shareholders’ equity (deficit)||$||200,976||$||132,785|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|Six Months Ended
|Cash flows from operating activities:|
|Adjustments to reconcile net loss to net cash used in operating activities:|
|Depreciation and amortization||1,189||506|
|Amortization of debt discount and debt issuance costs||2,460||2,229|
|Changes in deferred taxes||—||25,870|
|Share-based compensation expense||9,166||3,163|
|Loss on extinguishment of debt||13,129||—|
|Net changes in assets and liabilities|
|Prepaid expenses and other current assets||(4,400||)||13,305|
|Research and development tax credit receivable||2,127||30|
|Accounts payable & other current liabilities||2,470||(4,457||)|
|Other assets and liabilities||(255||)||(2,678||)|
|Net cash used in operating activities||(62,256||)||(48,135||)|
|Cash flows from investing activities:|
|Proceeds from sales of marketable securities||25,618||56,501|
|Purchases of marketable securities||(113,460||)||(2,202||)|
|Net cash (used in) provided by investing activities||(87,842||)||54,299|
|Cash flows from financing activities:|
|Payments for debt issuance costs||(4,357||)||(4,803||)|
|Proceeds from issuance of shares off the at-the-market offering program||11,913||—|
|Proceeds from stock option exercises and employee share purchase plan||1,779||2,009|
|Net cash provided by (used in) financing activities||125,986||(2,794||)|
|Effect of foreign currency exchange rate changes on cash and cash equivalents||116||50|
|Net change in cash and cash equivalents||(23,996||)||3,420|
|Cash and cash equivalents at
|Cash and cash equivalents at
Source: Avadel Pharmaceuticals plc