0001012477-24-000021 | 10-Q | XBRL Viewer | Avadel Pharmaceuticals PLC

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Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax provision was $88 for the three months ended September 30, 2024 resulting in an effective tax rate of (3.5)%. The income tax provision was $89 for the three months ended September 30, 2023 resulting in an effective tax rate of (0.2)%. The income tax benefit was $327 for the nine months ended September 30, 2024 resulting in an effective tax rate of 0.7%. The income tax benefit was $401 for the nine months ended September 30, 2023 resulting in an effective tax rate of 0.3%. The change in the effective income tax rate for the nine months ended September 30, 2024, as compared to the prior period in 2023, is primarily driven by the release of uncertain tax positions due to the expiration of their statute of limitations in the current period compared to a state tax refund received during the first quarter of the prior period. The Company's cumulative loss position was significant negative evidence in assessing the need for a valuation allowance on its deferred tax assets. Given the weight of objectively verifiable historical losses from operations, the Company has a full valuation allowance on its deferred tax assets. The Company will be able to reverse the valuation allowance when it has shown its ability to generate taxable income on a consistent basis in future periods. The valuation allowance does not have an impact on the Company's ability to utilize any net operating losses or other tax attributes to offset cash taxes payable as these items are still eligible to be used.

- Definition

The entire disclosure for income tax.

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+ Details

Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Percentage of Total Sales to Customers

The following table presents a summary of the percentage of total gross sales to customers:


	Three Months Ended September 30,				Nine Months Ended September 30,
Sales by Customer:	2024		2023		2024		2023

Caremark	43	%	41	%	46	%	41	%
Accredo	39	%	38	%	37	%	38	%
Optum	18	%	21	%	17	%	21	%

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred shares, nominal value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, shares authorized (in shares)	50,000,000	50,000,000
Preferred shares, shares issued (in shares)	0	5,194,000
Preferred shares, shares outstanding (in shares)	0	5,194,000
Ordinary shares, nominal value (in dollars per share)	$ 0.01	$ 0.01
Ordinary shares, shares authorized (in shares)	500,000,000	500,000,000
Ordinary shares, shares issued (in shares)	96,338,000	89,825,000
Ordinary shares, shares outstanding (in shares)	96,338,000	89,825,000

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (2,625)	$ (13,822)	$ (27,342)	$ (36,274)	$ (64,432)	$ (30,784)	$ (43,789)	$ (131,490)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 37,225	$ 73,944
Government securities - U.S.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	37,225	73,944
Fair Value Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	37,225	73,944
Fair Value Measurements, Recurring \| Level 1 \| Government securities - U.S.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	37,225	73,944
Fair Value Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Fair Value Measurements, Recurring \| Level 2 \| Government securities - U.S.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Fair Value Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Fair Value Measurements, Recurring \| Level 3 \| Government securities - U.S.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

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+ Details

Comprehensive Loss

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Comprehensive Loss

The following table shows the components of accumulated other comprehensive loss, net of tax effects:


	Three Months Ended September 30,				Nine Months Ended September 30,
Accumulated Other Comprehensive Loss:	2024		2023		2024		2023

Foreign currency translation adjustment:
Beginning balance	$	(24,431)	$	(24,269)	$	(24,121)	$	(24,452)
Net other comprehensive income (loss)	429		(303)		119		(120)
Balance at September 30,	$	(24,002)	$	(24,572)	$	(24,002)	$	(24,572)

Unrealized gain (loss) on marketable debt securities, net
Beginning balance	$	216	$	(1,674)	$	954	$	(1,890)
Net other comprehensive (loss) income, net of income tax expense of $0, $0, $0, and $0 respectively	(16)		295		(754)		511
Balance at September 30,	$	200	$	(1,379)	$	200	$	(1,379)
Accumulated other comprehensive loss at September 30,	$	(23,802)	$	(25,951)	$	(23,802)	$	(25,951)

The effect on the Company’s unaudited condensed consolidated financial statements of amounts reclassified out of accumulated other comprehensive loss was immaterial for all periods presented.

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax provision (benefit)	$ 88	$ 89	$ (327)	$ (401)
Effective income tax rate	(3.50%)	(0.20%)	0.70%	0.30%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
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+ Details

Royalty Financing Obligation

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Royalty Financing Obligation

On March 29, 2023, the Company and Avadel CNS Pharmaceuticals, LLC entered into the RPA with RTW Investments, L.P. (“RTW”) that could provide the Company up to $75,000 of royalty financing in two tranches. The first tranche of $30,000 became available upon satisfaction of certain conditions which included the Company’s first shipment of LUMRYZ. The second tranche became available to use, at the Company’s election, when the Company achieved quarterly net revenue of $25,000 prior to the quarter ending June 30, 2024. The Company allowed the second tranche to expire on August 31, 2024 and paid a one-time commitment fee of $2,000 to RTW in accordance with the terms of the RPA.

On August 1, 2023, the Company received the first tranche of $30,000. The Company is required to make quarterly royalty payments calculated as 3.75% of worldwide net product revenue of LUMRYZ, up to a total payback of $75,000.

The RPA is recorded as a royalty financing obligation on the unaudited condensed consolidated balance sheets based on the Company’s evaluation of the terms of the RPA. The accounts receivable and inventory balances of LUMRYZ are pledged as collateral for the RPA. There are no subjective acceleration clauses or provisions, and there are no covenants in violation or other clauses that would cause the full amount of the royalty financing obligation to be callable. As such, the RPA is recorded as a long-term obligation on the unaudited condensed consolidated balance sheets.

The Company imputes interest using the effective interest method and records interest expense based on the unamortized royalty financing obligation. The Company’s estimate of the interest rate under the RPA is based primarily on forecasted net revenue and the calculated amounts and timing of net royalty payments to reach the total payback of $75,000. As of September 30, 2024 and December 31, 2023 the effective interest rate is estimated as 30.4%. The Company will account for changes in the imputed interest rate resulting from changes in forecasted net product revenue using the prospective method.

The following table shows the activity within the royalty financing obligation account:


Royalty Financing Obligation:	September 30, 2024		December 31, 2023
Royalty financing obligation – beginning balance	$	33,490	$	—
Receipt of the first tranche of the royalty financing obligation	—		30,000
Accretion of imputed interest expense on royalty financing obligation	8,128		3,743
Less: royalty payments made to RTW	(3,305)		(253)
Less: one-time payment for expiration of second tranche	(2,000)		—
Royalty financing obligation – ending balance	36,313		33,490
Less: royalty payable to RTW classified within accrued expenses	(1,876)		(730)
Royalty financing obligation, non-current	$	34,437	$	32,760

The accretion of imputed interest expense is reflected as interest expense in the unaudited condensed consolidated statements of loss. For the three months ended September 30, 2024 and 2023, the total interest expense related to the royalty financing obligation was $2,820 and $1,404, respectively. For the nine months ended September 30, 2024 and 2023, the total interest expense related to the royalty financing obligation was $8,128 and $1,404, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic and Diluted Net Loss Per Share

A reconciliation of basic and diluted net loss per share, together with the related shares outstanding in thousands is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
Net Loss Per Share:	2024		2023		2024		2023

Net loss	$	(2,625)	$	(36,274)	$	(43,789)	$	(131,490)



Weighted average shares:
Basic shares	96,300		89,380		94,720		76,931
Effect of dilutive securities—employee and director equity awards outstanding, preferred shares and 2023 Notes	—		—		—		—

Diluted shares	96,300		89,380		94,720		76,931

Net loss per share - basic	$	(0.03)	$	(0.41)	$	(0.46)	$	(1.71)
Net loss per share - diluted	$	(0.03)	$	(0.41)	$	(0.46)	$	(1.71)

Inventories (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Principal Categories of Inventories

The principal categories of inventories were comprised of the following:


Inventory:	September 30, 2024		December 31, 2023

Raw materials and supplies	$	4,048	$	5,291
Work in process	3,117		2,037
Finished goods	8,932		3,052
Total	$	16,097	$	10,380

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Nature of Operations. Avadel Pharmaceuticals plc (Nasdaq: AVDL) (“Avadel,” the “Company,” “we,” “our,” or “us”) is a biopharmaceutical company. The Company is registered as an Irish public limited company. The Company’s headquarters are in Dublin, Ireland with operations in Dublin, Ireland and St. Louis, Missouri, United States (“U.S.”). LUMRYZ is an extended-release formulation of sodium oxybate indicated to be taken once at bedtime for the treatment of cataplexy or excessive daytime sleepiness (“EDS”) in adults with narcolepsy and in the pediatric narcolepsy population seven years and older. LUMRYZ was approved by the U.S. Food and Drug Administration (“FDA”) on May 1, 2023 for the treatment of cataplexy or EDS in adults with narcolepsy. The FDA also granted Orphan Drug Exclusivity (“ODE”) to LUMRYZ for treatment of cataplexy or EDS in adults with narcolepsy for a period of seven years until May 1, 2030. In June 2023, the Company commercially launched LUMRYZ in the U.S for the treatment of cataplexy or EDS in adults living with narcolepsy. LUMRYZ was approved by the FDA for use in the treatment of cataplexy or EDS in the pediatric narcolepsy population seven years and older on October 16, 2024, and was granted ODE through October 16, 2031. In approving LUMRYZ, the FDA approved a risk evaluation and mitigation strategy (“REMS”) for LUMRYZ to help ensure that the benefits of the drug in the treatment of cataplexy and EDS in narcolepsy outweigh the risks of serious adverse outcomes resulting from inappropriate prescribing, misuse, abuse, and diversion of the drug. Under this REMS, healthcare providers who prescribe the drug must be specially certified; pharmacies that dispense the drug must be specially certified; and the drug must be dispensed only to patients who have enrolled in the LUMRYZ REMS and completed all REMS requirements, including documentation of safe use conditions. As of the date of this Quarterly Report, the Company’s only commercialized product is LUMRYZ. The Company continues to evaluate opportunities to expand its product portfolio. Liquidity. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The adequacy of the Company’s cash resources depends on the outcome of certain business conditions including the cost of the Company’s ongoing LUMRYZ commercialization activities, the Company’s cost structure, and other factors set forth in “Risk Factors” within Part I, Item 1A of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on February 29, 2024 (the “Annual Report on Form 10-K”). Ordinary Shares Effective April 15, 2024, the Company’s ordinary shares, nominal value $0.01 per share (“ordinary shares”), became directly listed on the Nasdaq Stock Market. The Company caused a mandatory exchange of its American Depositary Shares (“ADSs”) for the underlying ordinary shares on a one-for-one basis. Accordingly, the Bank of New York Mellon (“BNY Mellon”), as Depositary for the ADSs, issued a notice of termination of its American Depository Receipt program (“ADR Program”) of ADSs to the registered holders of ADSs according to the requirements under the deposit agreement dated January 3, 2017 (the “Deposit Agreement”) among the Company, BNY Mellon and holders of ADSs. The Deposit Agreement terminated on July 15, 2024. At-the-Market Offering Program On May 8, 2024, the Company entered into an Open Market Sale AgreementSM (the “Sales Agreement”) with Jefferies LLC (“Jefferies”) pursuant to which the Company may offer and sell its ordinary shares, from time to time, with respect to an at-the-market offering program (“ATM Program”) under which Jefferies will act as sales agent. The Sales Agreement provides that Jefferies will be entitled to aggregate compensation for its services of an amount up to 3.0% of the gross proceeds of any ordinary shares sold through Jefferies under the Sales Agreement. The Sales Agreement replaces the Company’s previous Open Market Sale AgreementSM with Jefferies, dated February 4, 2020 (the “ADS Sales Agreement”), which provided for the sale of ADSs by the Company. The Company terminated the ADS Sales Agreement upon effectiveness of the Sales Agreement following the mandatory exchange of the ADSs and the direct listing of the ordinary shares on the Nasdaq Stock Market on April 15, 2024. The ordinary shares will be offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-267198), filed with the SEC on August 31, 2022, as amended, and declared effective by the SEC on September 12, 2022, as supplemented by the prospectus supplement dated May 8, 2024 (the “Prospectus Supplement”). The Company may offer and sell ordinary shares having an aggregate offering price of up to $100,000 under the Prospectus Supplement. Prior to termination, the Company issued and sold 640 ordinary shares pursuant to the ADS Sales Agreement during the three months ended March 31, 2024, resulting in net proceeds to the Company of approximately $9,250. The Company has not issued or sold ordinary shares pursuant to the ADS Sales Agreement or the Sales Agreement subsequent to March 31, 2024. Preferred Shares In March 2024, 5,194 Series A Non-Voting Convertible Preferred Shares and Series B Non-Voting Convertible Preferred Shares (“Series B Preferred Shares”) were converted to 5,194 ordinary shares at the option of the holders. Accordingly, there were no preferred shares issued and outstanding at September 30, 2024. Basis of Presentation. The unaudited condensed consolidated balance sheet as of September 30, 2024 and the interim unaudited condensed consolidated financial statements presented herein, have been prepared in accordance with U.S. GAAP, the requirements of Form 10-Q and Article 10 of Regulation S-X and, consequently, do not include all information or footnotes required by U.S. GAAP for complete financial statements or all the disclosures normally made in an Annual Report on Form 10-K. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K. Certain prior year amounts have been reclassified within the notes to the unaudited condensed consolidated financial statements to condense line items of the same nature to conform with the current year presentation. The unaudited condensed consolidated financial statements include the accounts of the Company and subsidiaries and reflect all adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the dates and periods presented. All intercompany accounts and transactions have been eliminated. Results for interim periods are not necessarily indicative of the results to be expected during the remainder of the current year or for any future period. Newly Issued Climate-Related Disclosure Rule. In March 2024, the SEC issued a final rule requiring public companies to disclose climate-related information in their registration statements and annual reports. For large accelerated filers, the initial disclosure rules are effective for annual periods for the year ending December 31, 2025. In April 2024, the SEC voluntarily stayed the final rule pending the completion of judicial review by the Court of Appeals for the Eighth Circuit. The Company is monitoring the development of litigation related to the SEC’s rule, and is currently evaluating the effects of the final rule on its disclosures, processes and procedures.

Other Assets and Liabilities - Accrued Expenses (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Accrued professional fees	$ 14,694	$ 11,961
Reserves for variable consideration	11,599	4,044
Accrued compensation	5,738	7,492
Royalty payable to RTW	1,876	730
Total	$ 33,907	$ 24,227

Marketable Securities - Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	$ 37,025	$ 72,990
Unrealized Gains	200	954
Unrealized Losses	0	0
Fair Value	37,225	73,944
Government securities - U.S.
Debt Securities, Available-for-sale [Line Items]
Adjusted Cost	37,025	72,990
Unrealized Gains	200	954
Unrealized Losses	0	0
Fair Value	$ 37,225	$ 73,944

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 320
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+ Details

Other Assets and Liabilities - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Prepaid and other expenses	$ 6,306	$ 4,373
Other	1,946	2,235
Total	$ 8,252	$ 6,608

Royalty Financing Obligation (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Royalty Financing Obligation

The following table shows the activity within the royalty financing obligation account:


Royalty Financing Obligation:	September 30, 2024		December 31, 2023
Royalty financing obligation – beginning balance	$	33,490	$	—
Receipt of the first tranche of the royalty financing obligation	—		30,000
Accretion of imputed interest expense on royalty financing obligation	8,128		3,743
Less: royalty payments made to RTW	(3,305)		(253)
Less: one-time payment for expiration of second tranche	(2,000)		—
Royalty financing obligation – ending balance	36,313		33,490
Less: royalty payable to RTW classified within accrued expenses	(1,876)		(730)
Royalty financing obligation, non-current	$	34,437	$	32,760

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Marketable Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The Company has investments in available-for-sale debt securities which are recorded at fair market value. The change in the fair value of available-for-sale debt investments is recorded as accumulated other comprehensive loss in shareholders’ equity, net of income tax effects. As of September 30, 2024, the Company considered any decreases in fair value on its marketable securities to be driven by factors other than credit risk, including market risk.

The following tables show the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category as of September 30, 2024 and December 31, 2023:


	September 30, 2024
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value



Government securities - U.S.	$	37,025	$	200	$	—	$	37,225

Total	$	37,025	$	200	$	—	$	37,225


	December 31, 2023
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value



Government securities - U.S.	$	72,990	$	954	$	—	$	73,944

Total	$	72,990	$	954	$	—	$	73,944

The Company determines realized gains or losses on the sale of marketable securities on a specific identification method. The Company reflects these gains and losses as a component of investment and other income, net in the accompanying unaudited condensed consolidated statements of loss.

The Company recognized gross realized gains of $331 and no gross realized losses for three months ended September 30, 2024. The Company recognized gross realized gains of $1,438 and no gross realized losses for the nine months ended September 30, 2024.

The Company recognized gross realized gains of $268 and gross realized losses of $283 for the three months ended September 30, 2023. The Company recognized gross realized gains of $269 and gross realized losses of $344 for the nine months ended September 30, 2023.

The following table summarizes the estimated fair value of the Company’s investments in marketable debt securities, accounted for as available-for-sale debt securities and classified by the contractual maturity date of the securities as of September 30, 2024:


	Maturities
Marketable Debt Securities:	Less than 1 Year		1-5 Years		5-10 Years		Greater than 10 Years		Total


Government securities - U.S.	$	37,225	$	—	$	—	$	—	$	37,225


Total	$	37,225	$	—	$	—	$	—	$	37,225

The Company has classified its investment in available-for-sale marketable debt securities as current assets in the unaudited condensed consolidated balance sheets as the securities need to be available for use, if required, to fund current operations. There are no restrictions on the sale of any securities in the Company’s investment portfolio.

Comprehensive Loss (Tables)

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Schedule of Components of Accumulated Other Comprehensive Loss

The following table shows the components of accumulated other comprehensive loss, net of tax effects:


	Three Months Ended September 30,				Nine Months Ended September 30,
Accumulated Other Comprehensive Loss:	2024		2023		2024		2023

Foreign currency translation adjustment:
Beginning balance	$	(24,431)	$	(24,269)	$	(24,121)	$	(24,452)
Net other comprehensive income (loss)	429		(303)		119		(120)
Balance at September 30,	$	(24,002)	$	(24,572)	$	(24,002)	$	(24,572)

Unrealized gain (loss) on marketable debt securities, net
Beginning balance	$	216	$	(1,674)	$	954	$	(1,890)
Net other comprehensive (loss) income, net of income tax expense of $0, $0, $0, and $0 respectively	(16)		295		(754)		511
Balance at September 30,	$	200	$	(1,379)	$	200	$	(1,379)
Accumulated other comprehensive loss at September 30,	$	(23,802)	$	(25,951)	$	(23,802)	$	(25,951)

Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
Comprehensive Loss (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Loss:
Beginning balance	$ 70,288	$ 78,384	$ 87,739	$ 143,192	$ (38,166)	$ (21,145)	$ 87,739	$ (21,145)
Net other comprehensive income (loss)	413	(459)	(589)	(8)	83	315	(635)	391
Ending balance	74,663	70,288	78,384	110,149	143,192	(38,166)	74,663	110,149
Net other comprehensive (loss) income, tax expense	0			0			0	0
Accumulated other comprehensive loss
Accumulated Other Comprehensive Loss:
Beginning balance	(24,215)	(23,756)	(23,167)	(25,943)	(26,026)	(26,341)	(23,167)	(26,341)
Net other comprehensive income (loss)	413	(459)	(589)	(8)	83	315
Ending balance	(23,802)	(24,215)	(23,756)	(25,951)	(25,943)	(26,026)	(23,802)	(25,951)
Foreign currency translation adjustment
Accumulated Other Comprehensive Loss:
Beginning balance	(24,431)		(24,121)	(24,269)		(24,452)	(24,121)	(24,452)
Net other comprehensive income (loss)	429			(303)			119	(120)
Ending balance	(24,002)	(24,431)		(24,572)	(24,269)		(24,002)	(24,572)
Unrealized gain (loss) on marketable debt securities, net
Accumulated Other Comprehensive Loss:
Beginning balance	216		$ 954	(1,674)		$ (1,890)	954	(1,890)
Net other comprehensive income (loss)	(16)			295			(754)	511
Ending balance	$ 200	$ 216		$ (1,379)	$ (1,674)		$ 200	$ (1,379)

- Definition

Amount of equity (deficit) attributable to parent. Excludes temporary equity and equity attributable to noncontrolling interest.

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+ Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (2,625)	$ (36,274)	$ (43,789)	$ (131,490)
Other comprehensive income (loss), net of tax:
Foreign currency translation income (loss)	429	(303)	119	(120)
Net other comprehensive (loss) income, net of income tax expense of $0, $0, $0, and $0, respectively	(16)	295	(754)	511
Total other comprehensive income (loss), net of tax	413	(8)	(635)	391
Total comprehensive loss	$ (2,212)	$ (36,282)	$ (44,424)	$ (131,099)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net other comprehensive (loss) income, tax expense	$ 0	$ 0	$ 0	$ 0

Net Loss Per Share - Reconciliation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Net loss	$ (2,625)	$ (13,822)	$ (27,342)	$ (36,274)	$ (64,432)	$ (30,784)	$ (43,789)	$ (131,490)
Weighted average shares:
Basic shares (in shares)	96,300			89,380			94,720	76,931
Effect of dilutive securities - employee and director equity awards outstanding, preferred shares and 2023 Notes (in shares)	0			0			0	0
Diluted shares (in shares)	96,300			89,380			94,720	76,931
Net loss per share - basic (in dollars per share)	$ (0.03)			$ (0.41)			$ (0.46)	$ (1.71)
Net loss per share - diluted (in dollars per share)	$ (0.03)			$ (0.41)			$ (0.46)	$ (1.71)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended		6 Months Ended
	May 08, 2024 USD ($)	Apr. 15, 2024 $ / shares	Mar. 31, 2024 shares	Mar. 31, 2024 USD ($) shares	Jun. 30, 2023 shares	Sep. 30, 2024 $ / shares shares	Dec. 31, 2023 $ / shares shares
Class of Stock [Line Items]
Ordinary shares, nominal value (in dollars per share) \| $ / shares		$ 0.01				$ 0.01	$ 0.01
ADSs, conversion ratio		1
Preferred shares, shares issued (in shares)						0	5,194,000
Preferred shares, shares outstanding (in shares)						0	5,194,000
Preferred shares
Class of Stock [Line Items]
Shares converted (in shares)			5,194,000	5,194,000
Ordinary shares
Class of Stock [Line Items]
Shares converted (in shares)			5,194,000	5,194,000	12,347,000
At-The-Market Offering Program
Class of Stock [Line Items]
Sales agent commission, as a percent of aggregate gross sales proceeds	3.00%
Sale of stock, maximum aggregate offering price \| $	$ 100,000
Shares sold in offering (in shares)						0
Aggregate net proceeds from stock offering \| $				$ 9,250
At-The-Market Offering Program \| American Depositary Shares
Class of Stock [Line Items]
Shares sold in offering (in shares)				640,000

Marketable Securities - Schedule of Contractual Maturity Dates (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Less than 1 Year	$ 37,225
1-5 Years	0
5-10 Years	0
Greater than 10 Years	0
Total	37,225	$ 73,944
Government securities - U.S.
Debt Securities, Available-for-sale [Line Items]
Less than 1 Year	37,225
1-5 Years	0
5-10 Years	0
Greater than 10 Years	0
Total	$ 37,225	$ 73,944

- Definition

Amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

Cover page - shares	9 Months Ended
Cover page - shares	Sep. 30, 2024	Nov. 08, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-37977
Entity Registrant Name	AVADEL PHARMACEUTICALS PLC
Entity Incorporation, State or Country Code	L2
Entity Tax Identification Number	98-1341933
Entity Address, Address Line One	10 Earlsfort Terrace
Entity Address, City or Town	Dublin 2
Entity Address, Postal Zip Code	D02 T380
Entity Address, Country	IE
Country Region	353
City Area Code	1
Local Phone Number	901-5201
Title of 12(b) Security	Ordinary Shares, nominal value $0.01 per share
Trading Symbol	AVDL
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		96,361,528
Entity Central Index Key	0001012477
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events LUMRYZ was approved by the FDA for use in the treatment of cataplexy or EDS in the pediatric narcolepsy population seven years and older on October 16, 2024, and was granted ODE through October 16, 2031.

Other Assets and Liabilities

9 Months Ended

Sep. 30, 2024

Other Liabilities Disclosure [Abstract]

Other Assets and Liabilities

Various other assets and liabilities are summarized as follows:


Prepaid Expenses and Other Current Assets:	September 30, 2024		December 31, 2023

Prepaid and other expenses	$	6,306	$	4,373
Other	1,946		2,235

Total	$	8,252	$	6,608


Other Non-Current Assets:	September 30, 2024		December 31, 2023

Right of use assets at contract manufacturing organizations	$	11,361	$	9,905

Other	399		579

Total	$	11,760	$	10,484


Accrued Expenses:	September 30, 2024		December 31, 2023

Accrued professional fees	$	14,694	$	11,961
Reserves for variable consideration	11,599		4,044
Accrued compensation	5,738		7,492
Royalty payable to RTW	1,876		730


Total	$	33,907	$	24,227


Other Non-Current Liabilities:	September 30, 2024		December 31, 2023

Tax liabilities	$	5,068	$	5,407
Other	86		247
Total	$	5,154	$	5,654

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations. Avadel Pharmaceuticals plc (Nasdaq: AVDL) (“Avadel,” the “Company,” “we,” “our,” or “us”) is a biopharmaceutical company. The Company is registered as an Irish public limited company. The Company’s headquarters are in Dublin, Ireland with operations in Dublin, Ireland and St. Louis, Missouri, United States (“U.S.”). LUMRYZ is an extended-release formulation of sodium oxybate indicated to be taken once at bedtime for the treatment of cataplexy or excessive daytime sleepiness (“EDS”) in adults with narcolepsy and in the pediatric narcolepsy population seven years and older. LUMRYZ was approved by the U.S. Food and Drug Administration (“FDA”) on May 1, 2023 for the treatment of cataplexy or EDS in adults with narcolepsy. The FDA also granted Orphan Drug Exclusivity (“ODE”) to LUMRYZ for treatment of cataplexy or EDS in adults with narcolepsy for a period of seven years until May 1, 2030. In June 2023, the Company commercially launched LUMRYZ in the U.S for the treatment of cataplexy or EDS in adults living with narcolepsy. LUMRYZ was approved by the FDA for use in the treatment of cataplexy or EDS in the pediatric narcolepsy population seven years and older on October 16, 2024, and was granted ODE through October 16, 2031. In approving LUMRYZ, the FDA approved a risk evaluation and mitigation strategy (“REMS”) for LUMRYZ to help ensure that the benefits of the drug in the treatment of cataplexy and EDS in narcolepsy outweigh the risks of serious adverse outcomes resulting from inappropriate prescribing, misuse, abuse, and diversion of the drug. Under this REMS, healthcare providers who prescribe the drug must be specially certified; pharmacies that dispense the drug must be specially certified; and the drug must be dispensed only to patients who have enrolled in the LUMRYZ REMS and completed all REMS requirements, including documentation of safe use conditions. As of the date of this Quarterly Report, the Company’s only commercialized product is LUMRYZ. The Company continues to evaluate opportunities to expand its product portfolio.
Liquidity	Liquidity. The accompanying unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.
Basis of Presentation	Basis of Presentation. The unaudited condensed consolidated balance sheet as of September 30, 2024 and the interim unaudited condensed consolidated financial statements presented herein, have been prepared in accordance with U.S. GAAP, the requirements of Form 10-Q and Article 10 of Regulation S-X and, consequently, do not include all information or footnotes required by U.S. GAAP for complete financial statements or all the disclosures normally made in an Annual Report on Form 10-K. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K.
Reclassifications	Certain prior year amounts have been reclassified within the notes to the unaudited condensed consolidated financial statements to condense line items of the same nature to conform with the current year presentation.
Newly Issued Climate-Related Disclosure Rule	Newly Issued Climate-Related Disclosure Rule. In March 2024, the SEC issued a final rule requiring public companies to disclose climate-related information in their registration statements and annual reports. For large accelerated filers, the initial disclosure rules are effective for annual periods for the year ending December 31, 2025. In April 2024, the SEC voluntarily stayed the final rule pending the completion of judicial review by the Court of Appeals for the Eighth Circuit. The Company is monitoring the development of litigation related to the SEC’s rule, and is currently evaluating the effects of the final rule on its disclosures, processes and procedures.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Ordinary shares	Preferred shares	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive loss
Beginning balance (in shares) at Dec. 31, 2022		62,878	488
Beginning balance at Dec. 31, 2022	$ (21,145)	$ 628	$ 5	$ 589,783	$ (585,220)	$ (26,341)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(30,784)				(30,784)
Other comprehensive (loss) income	315					315
Issuance of common stock, net of issuance costs (in shares)		1,564
Issuance of common stock, net of issuance costs	11,913	$ 16		11,897
Amortization of deferred issuance costs	(16)			(16)
Vesting of restricted shares (in shares)		22
Employee share purchase plan share issuance (in shares)		14
Employee share purchase plan share issuance	29			29
Share-based compensation expense	1,522			1,522
Ending balance (in shares) at Mar. 31, 2023		64,478	488
Ending balance at Mar. 31, 2023	(38,166)	$ 644	$ 5	603,215	(616,004)	(26,026)
Beginning balance (in shares) at Dec. 31, 2022		62,878	488
Beginning balance at Dec. 31, 2022	(21,145)	$ 628	$ 5	589,783	(585,220)	(26,341)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(131,490)
Other comprehensive (loss) income	391
Ending balance (in shares) at Sep. 30, 2023		89,398	5,194
Ending balance at Sep. 30, 2023	110,149	$ 893	$ 52	851,865	(716,710)	(25,951)
Beginning balance (in shares) at Mar. 31, 2023		64,478	488
Beginning balance at Mar. 31, 2023	(38,166)	$ 644	$ 5	603,215	(616,004)	(26,026)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(64,432)				(64,432)
Other comprehensive (loss) income	83					83
Issuance of common stock, net of issuance costs (in shares)		12,205	4,706
Issuance of common stock, net of issuance costs	134,151	$ 122	$ 47	133,982
Conversion of preferred stock into ordinary shares/ Mandatory exchange of notes, net of issuance costs (in shares)		12,347
Conversion of preferred stock into ordinary shares/ Mandatory exchange of notes, net of issuance costs	102,162	$ 123		102,039
Exercise of stock options (in shares)		291
Exercise of stock options	1,750	$ 4		1,746
Share-based compensation expense	7,644			7,644
Ending balance (in shares) at Jun. 30, 2023		89,321	5,194
Ending balance at Jun. 30, 2023	143,192	$ 893	$ 52	848,626	(680,436)	(25,943)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(36,274)				(36,274)
Other comprehensive (loss) income	(8)					(8)
Conversion of preferred stock into ordinary shares/ Mandatory exchange of notes, net of issuance costs	(350)
Exercise of stock options (in shares)		44
Exercise of stock options	261			261
Employee share purchase plan share issuance (in shares)		33
Employee share purchase plan share issuance	201			201
Share-based compensation expense	3,127			3,127
Ending balance (in shares) at Sep. 30, 2023		89,398	5,194
Ending balance at Sep. 30, 2023	110,149	$ 893	$ 52	851,865	(716,710)	(25,951)
Beginning balance (in shares) at Dec. 31, 2023		89,825	5,194
Beginning balance at Dec. 31, 2023	87,739	$ 898	$ 52	855,452	(745,496)	(23,167)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(27,342)				(27,342)
Other comprehensive (loss) income	(589)					(589)
Issuance of common stock, net of issuance costs (in shares)		640
Issuance of common stock, net of issuance costs	9,250	$ 6		9,244
Amortization of deferred issuance costs	(3)			(3)
Conversion of preferred stock into ordinary shares/ Mandatory exchange of notes, net of issuance costs (in shares)		5,194	5,194
Conversion of preferred stock into ordinary shares/ Mandatory exchange of notes, net of issuance costs	0	$ 52	$ (52)
Exercise of stock options (in shares)		390
Exercise of stock options	3,356	$ 3		3,353
Employee share purchase plan share issuance (in shares)		48
Employee share purchase plan share issuance	584	$ 1		583
Share-based compensation expense	5,389			5,389
Ending balance (in shares) at Mar. 31, 2024		96,097	0
Ending balance at Mar. 31, 2024	78,384	$ 960	$ 0	874,018	(772,838)	(23,756)
Beginning balance (in shares) at Dec. 31, 2023		89,825	5,194
Beginning balance at Dec. 31, 2023	87,739	$ 898	$ 52	855,452	(745,496)	(23,167)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(43,789)
Other comprehensive (loss) income	(635)
Ending balance (in shares) at Sep. 30, 2024		96,338	0
Ending balance at Sep. 30, 2024	74,663	$ 963	$ 0	886,787	(789,285)	(23,802)
Beginning balance (in shares) at Mar. 31, 2024		96,097	0
Beginning balance at Mar. 31, 2024	78,384	$ 960	$ 0	874,018	(772,838)	(23,756)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(13,822)				(13,822)
Other comprehensive (loss) income	(459)					(459)
Exercise of stock options (in shares)		107
Exercise of stock options	723	$ 1		722
Share-based compensation expense	5,462			5,462
Ending balance (in shares) at Jun. 30, 2024		96,204	0
Ending balance at Jun. 30, 2024	70,288	$ 961	$ 0	880,202	(786,660)	(24,215)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(2,625)				(2,625)
Other comprehensive (loss) income	413					413
Exercise of stock options (in shares)		69
Exercise of stock options	400	$ 1		399
Employee share purchase plan share issuance (in shares)		65
Employee share purchase plan share issuance	777	$ 1		776
Share-based compensation expense	5,410			5,410
Ending balance (in shares) at Sep. 30, 2024		96,338	0
Ending balance at Sep. 30, 2024	$ 74,663	$ 963	$ 0	$ 886,787	$ (789,285)	$ (23,802)

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2024 USD ($)
First Jazz Complaint
Loss Contingencies [Line Items]
Loss contingency accrued	$ 234

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Other Assets and Liabilities - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Tax liabilities	$ 5,068	$ 5,407
Other	86	247
Total	$ 5,154	$ 5,654

Marketable Securities - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Gross realized gains	$ 331	$ 268	$ 1,438	$ 269
Gross realized losses	$ 0	$ 283	$ 0	$ 344

Revenue Recognition (Details) - Revenue from Contract with Customer Benchmark - Customer Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Three Customers
Concentration Risk [Line Items]
Concentration risk, percent	100.00%	100.00%	100.00%	100.00%
Caremark
Concentration Risk [Line Items]
Concentration risk, percent	43.00%	41.00%	46.00%	41.00%
Accredo
Concentration Risk [Line Items]
Concentration risk, percent	39.00%	38.00%	37.00%	38.00%
Optum
Concentration Risk [Line Items]
Concentration risk, percent	18.00%	21.00%	17.00%	21.00%

CONDENSED CONSOLIDATED STATEMENTS OF LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net product revenue	$ 50,025	$ 7,014	$ 118,707	$ 8,510
Cost of products sold	6,155	117	10,465	153
Gross profit	43,870	6,897	108,242	8,357
Operating expenses:
Research and development expenses	3,803	2,849	10,922	10,902
Selling, general and administrative expenses	40,394	39,158	136,422	110,404
Total operating expense	44,197	42,007	147,344	121,306
Operating loss	(327)	(35,110)	(39,102)	(112,949)
Investment and other income, net	610	903	3,114	1,719
Interest expense	(2,820)	(1,978)	(8,128)	(7,532)
Loss on extinguishment of debt	0	0	0	(13,129)
Loss before income taxes	(2,537)	(36,185)	(44,116)	(131,891)
Income tax provision (benefit)	88	89	(327)	(401)
Net loss	$ (2,625)	$ (36,274)	$ (43,789)	$ (131,490)
Net loss per share - basic (in dollars per share)	$ (0.03)	$ (0.41)	$ (0.46)	$ (1.71)
Net loss per share - diluted (in dollars per share)	$ (0.03)	$ (0.41)	$ (0.46)	$ (1.71)
Weighted average number of shares outstanding - basic (in shares)	96,300	89,380	94,720	76,931
Weighted average number of shares outstanding - diluted (in shares)	96,300	89,380	94,720	76,931

Other Assets and Liabilities - Other Non-Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities Disclosure [Abstract]
Right of use assets at contract manufacturing organizations	$ 11,361	$ 9,905
Other	399	579
Total	$ 11,760	$ 10,484

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 4,048	$ 5,291
Work in process	3,117	2,037
Finished goods	8,932	3,052
Total	$ 16,097	$ 10,380

Net Loss Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Potential ordinary shares excluded from the computation of weighted average shares (in shares)	1,437	2,509	1,168	5,336
February 2023 Notes \| Senior Notes
Debt Instrument [Line Items]
Interest rate	4.50%		4.50%
October 2023 Notes \| Senior Notes
Debt Instrument [Line Items]
Interest rate	4.50%		4.50%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Inventories

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Inventories

The principal categories of inventories were comprised of the following:


Inventory:	September 30, 2024		December 31, 2023

Raw materials and supplies	$	4,048	$	5,291
Work in process	3,117		2,037
Finished goods	8,932		3,052
Total	$	16,097	$	10,380

The Company capitalizes inventory costs associated with products when future commercialization is considered probable and the future economic benefit is expected to be realized, which is typically when regulatory approval is obtained for a drug candidate. As such, the Company began capitalizing costs related to inventory in May 2023 upon FDA approval of LUMRYZ. Manufacturing costs associated with inventory purchased or produced prior to FDA approval were recorded as research and development expense in prior periods.

Marketable Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities


	September 30, 2024
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value



Government securities - U.S.	$	37,025	$	200	$	—	$	37,225

Total	$	37,025	$	200	$	—	$	37,225


	December 31, 2023
Marketable Securities:	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value



Government securities - U.S.	$	72,990	$	954	$	—	$	73,944

Total	$	72,990	$	954	$	—	$	73,944

Schedule of Contractual Maturity Dates


	Maturities
Marketable Debt Securities:	Less than 1 Year		1-5 Years		5-10 Years		Greater than 10 Years		Total


Government securities - U.S.	$	37,225	$	—	$	—	$	—	$	37,225


Total	$	37,225	$	—	$	—	$	—	$	37,225

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Royalty Financing Obligation - Narrative (Details) $ in Thousands				3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 31, 2024 USD ($)	Aug. 01, 2023 USD ($)	Mar. 29, 2023 USD ($) tranche	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Maximum proceeds from royalty financing			$ 75,000
Proceeds from issuance of long-term debt						$ 0	$ 30,000
Quarterly net revenue target for royalty financing			$ 25,000
Payments for royalty, one-time commitment fee	$ 2					2,000		$ 0
Quarterly royalty payments for royalty financing, percentage			3.75%
Interest expense				$ 2,820	$ 1,978	8,128	7,532
Royalty Financing
Debt Instrument [Line Items]
Number of tranches \| tranche			2
Proceeds from issuance of long-term debt		$ 30,000				$ 0		$ 30,000
Effective interest rate				30.40%		30.40%		30.40%
Interest expense				$ 2,820	$ 1,404	$ 8,128	$ 1,404	$ 3,743

Royalty Financing Obligation - Activity (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 31, 2024	Aug. 01, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Receipt of the first tranche of the royalty financing obligation					$ 0	$ 30,000
Accretion of imputed interest expense on royalty financing obligation			$ 2,820	$ 1,978	8,128	7,532
Less: one-time payment for expiration of second tranche	$ (2)				(2,000)		$ 0
Royalty Financing
Debt Instrument, Increase (Decrease), Net [Roll Forward]
Royalty financing obligation – beginning balance					33,490	0	0
Receipt of the first tranche of the royalty financing obligation		$ 30,000			0		30,000
Accretion of imputed interest expense on royalty financing obligation			2,820	$ 1,404	8,128	$ 1,404	3,743
Less: royalty payments made to RTW					(3,305)		(253)
Royalty financing obligation – ending balance			36,313		36,313		33,490
Less: royalty payable to RTW classified within accrued expenses			(1,876)		(1,876)		(730)
Royalty financing obligation, non-current			$ 34,437		$ 34,437		$ 32,760

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net loss	$ (2,625)	$ (27,342)	$ (36,274)	$ (30,784)	$ (43,789)	$ (131,490)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization					2,013	1,784
Amortization of debt discount and debt issuance costs					0	2,796
Share-based compensation expense					16,261	12,293
Loss on extinguishment of debt	0		0		0	13,129
Other adjustments					(1,052)	(349)
Net changes in assets and liabilities
Accounts receivable					(24,999)	(6,239)
Inventories					(5,255)	(5,286)
Prepaid expenses and other current assets					(1,615)	(3,203)
Accounts payable & other current liabilities					(3,516)	3,837
Accrued expenses					9,680	10,621
Other assets and liabilities					(2,508)	1,625
Net cash used in operating activities					(54,780)	(100,482)
Cash flows from investing activities:
Proceeds from sales of marketable securities					298,829	125,498
Purchases of marketable securities					(261,962)	(203,519)
Net cash provided by (used in) investing activities					36,867	(78,021)
Cash flows from financing activities:
Payments for February 2023 Notes					0	(17,500)
Payments for debt issuance costs					0	(4,357)
Proceeds from royalty purchase agreement					0	30,000
Proceeds from stock option exercises and employee share purchase plan					5,840	2,241
Net cash provided by financing activities					15,090	156,446
Effect of foreign currency exchange rate changes on cash and cash equivalents					238	(113)
Net change in cash and cash equivalents					(2,585)	(22,170)
Cash and cash equivalents at January 1,		$ 31,167		$ 73,981	31,167	73,981	$ 73,981
Cash and cash equivalents at September 30,	$ 28,582		$ 51,811		28,582	51,811	$ 31,167
Supplemental disclosures of cash flow information:
Interest paid					3,305	4,520
Public Offering
Cash flows from financing activities:
Proceeds from issuance of shares, net of issuance costs					0	134,149
At-The-Market Offering Program
Cash flows from financing activities:
Proceeds from issuance of shares, net of issuance costs					$ 9,250	$ 11,913

Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table summarizes the financial instruments measured at fair value on a recurring basis classified in the fair value hierarchy (Level 1, 2 or 3) based on the inputs used for valuation in the accompanying unaudited condensed consolidated balance sheets:


	As of September 30, 2024						As of December 31, 2023
Fair Value Measurements:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3

Marketable securities (see Note 4)


Government securities - U.S.	$	37,225	$	—	$	—	$	73,944	$	—	$	—

Total assets	$	37,225	$	—	$	—	$	73,944	$	—	$	—

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is subject to potential liabilities generally incidental to its business arising out of present and future lawsuits and claims related to product liability, personal injury, contract, commercial, intellectual property, tax, employment, compliance and other matters that arise in the ordinary course of business. The Company accrues for potential liabilities when it is probable that future costs (including contingent fees and expenses) will be incurred and such costs can be reasonably estimated. At September 30, 2024 and December 31, 2023, there were no contingent liabilities with respect to any litigation, arbitration or administrative or other proceeding that are reasonably likely to have a material adverse effect on the Company’s consolidated financial position, results of operations, cash flows or liquidity. First Jazz Complaint On May 12, 2021, Jazz Pharmaceuticals, Inc. (“Jazz”) filed a formal complaint (the “First Complaint”) initiating a lawsuit in the United States District Court for the District of Delaware (the “Court”) against Avadel Pharmaceuticals plc, Avadel US Holdings, Inc., Avadel Management Corporation, Avadel Legacy Pharmaceuticals, LLC, Avadel Specialty Pharmaceuticals, LLC, and Avadel CNS Pharmaceuticals, LLC (collectively, the “Avadel Parties”). In the First Complaint, Jazz alleges the sodium oxybate product (“Proposed Product”) described in the NDA owned by Avadel CNS Pharmaceuticals, LLC (“Avadel CNS”) will infringe at least one claim of U.S. Patent No. 8731963, 10758488, 10813885, 10959956 and/or 10966931 (collectively, the “patents-in-suit”). The First Complaint further includes typical relief requests such as preliminary and permanent injunctive relief, monetary damages and attorneys’ fees, costs and expenses. On June 3, 2021, the Avadel Parties timely filed their Answer and Counterclaims (the “Avadel Answer”) with the Court in response to the First Complaint. The Avadel Answer generally denies the allegations set forth in the First Complaint, includes numerous affirmative defenses (including, but not limited to, non-infringement and invalidity of the patents-in-suit), and asserts a number of counterclaims seeking i) a declaratory judgment of non-infringement of each patent-in-suit, and ii) a declaratory judgment of invalidity of each patent-in-suit. On June 18, 2021, Jazz filed its Answer (“Jazz Answer”) with the Court in response to the Avadel Answer. The Jazz Answer generally denies the allegations set forth in the Avadel Answer and sets forth a single affirmative defense asserting that Avadel has failed to state a claim for which relief can be granted. On June 21, 2021, the Court issued an oral order requiring the parties to i) confer regarding proposed dates to be included in the Court’s scheduling order for the case, and ii) submit a proposed order, including a proposal for the length and timing of trial, to the Court by no later than July 21, 2021. On July 30, 2021, the Court issued a scheduling order establishing timing for litigation events including i) a claim construction hearing date of August 2, 2022, and ii) a trial date of October 30, 2023. On October 18, 2021, consistent with the scheduling order, Jazz filed a status update with the Court indicating that Jazz did not intend to file a preliminary injunction with the Court at this time. Jazz further indicated that it would provide the Court with an update regarding whether preliminary injunction proceedings may be necessary after receiving further information regarding the FDA’s action on Avadel CNS’s NDA. On January 4, 2022, the Court entered an agreed order dismissing this case with respect to Avadel Pharmaceuticals plc, Avadel US Holdings, Inc., Avadel Specialty Pharmaceuticals, LLC, Avadel Legacy Pharmaceuticals, LLC, and Avadel Management Corporation. A corresponding order was entered in the two below cases on the same day. On February 25, 2022, Jazz filed an amended Answer to the Avadel Parties’ Counterclaims (“the Jazz First Amended Answer”). The Jazz First Amended Answer is substantially similar to the Jazz Answer except insofar as it adds an affirmative defense for judicial estoppel and unclean hands. Corresponding amended answers were filed in the two below cases on the same day. On June 23, 2022, Avadel CNS filed a Renewed Motion for Judgment on the Pleadings, with respect to its counterclaim against Jazz seeking to have U.S. Patent No. 8731963 (the “REMS Patent”) delisted from the Orange Book and seeking to have the motion resolved concurrent with the parties’ Markman hearing on August 31, 2022. On July 7, 2022, Jazz filed a response styled as Objections to Avadel CNS’ Motion for Judgment on the Pleadings. On July 14, 2022, Avadel CNS replied to Jazz’s response, and on July 21, 2022, Avadel CNS requested oral argument on its delisting motion simultaneous with the Markman hearing. On August 24, 2022, the Court ordered Jazz to respond substantively to Avadel CNS’ motion, which Jazz did on August 26, 2022. Avadel CNS filed its reply on August 28, 2022. On August 23, 2022, the Markman hearing was postponed. On September 7, 2022, the case was reassigned to a new judge, and the Markman hearing was held on October 25, 2022. At the Markman hearing, Avadel CNS reiterated its request for an expedited hearing on the Renewed Motion for Judgment on the Pleadings for the delisting of the REMS Patent. On October 28, 2022, the Court granted Avadel CNS’ request and scheduled the hearing for November 15, 2022. The Court held the Markman hearing on November 15, 2022 and issued a claim construction ruling on November 18, 2022. Also, on November 18, 2022 the Court granted Avadel’s Renewed Motion for Judgment on the Pleadings and ordered Jazz to request delisting of the REMS Patent from the Orange Book. On November 22, 2022, Jazz appealed that decision and on December 14, 2022, the Federal Circuit issued a stay of the delisting order until further notice. Oral argument was held February 14, 2023. On February 24, 2023, the United States Court of Appeals for the Federal Court affirmed the previous ruling from the Court, ordering the delisting of the REMS Patent from the Orange Book, which has since occurred. On March 7, 2023, in response to a joint stipulation filed by the parties, the Court issued an order dismissing Jazz’s infringement claims against the Avadel Parties relating to the REMS Patent as well as Avadel Parties’ noninfringement and invalidity counterclaims relating to the REMS Patent. On March 15, 2023, the parties submitted a Stipulation and Proposed Order Modifying the Case Schedule to accommodate additional claim construction proceedings. That stipulation remains pending before the Court. On April 26, 2023, the parties filed their Supplemental Joint Claim Construction Brief. On July 3, 2023, the Court issued a modified scheduling order establishing a new trial date of February 26, 2024. On July 21, 2023, in response to a Court order, the parties submitted a Stipulation and Proposed Order Modifying the Case Schedule with an updated proposed schedule to accommodate additional claim construction proceedings. On August 4, 2023, the Court entered a modified version of the parties’ proposed schedule, which was revised on August 28, 2023. The parties’ Second Supplemental Joint Claim Construction Brief was filed on October 10, 2023, and a Markman hearing regarding the disputed terms occurred on November 1, 2023. The Court issued its claim construction order on December 15, 2023. On August 15, 2023, Avadel renewed its request to consolidate this litigation with the litigation described in the Avadel Complaint below. On November 3, 2023, the Court denied that request. On November 30, 2023, the parties filed cross motions for summary judgment. The parties filed opposition briefs on December 15, 2023. The parties filed reply briefs on December 22, 2023. On February 14, 2024, the Court denied the parties’ summary judgment motions. On February 15, 2024, the Court held its Pretrial Conference. Trial was held from February 26, 2024 to March 1, 2024 (the “February Patent Trial”). On March 4, 2024, the jury returned a verdict of no infringement for U.S. Patent No. 10758488 and infringement of U.S. Patent No. 11147782, with damages of $234, which are included in the unaudited condensed consolidated balance sheets in accrued expenses at September 30, 2024. On March 19, 2024, the Court issued a Supplemental Scheduling Order setting a June 4, 2024 hearing on Jazz’s request for a permanent injunction or ongoing royalty. Briefing on Jazz’s request closed on May 20, 2024, and the hearing was held June 4, 2024. On August 27, 2024, the Court issued an opinion and order enjoining Avadel from infringing claim 24 of U.S. Patent No. 11147782. That injunction excluded certain categories of conduct, including permitting Avadel to continue making, using and selling LUMRYZ for the treatment of narcolepsy and for use in ongoing clinical trials and studies. The August 27, 2024 opinion and order also granted Jazz’s motion for an ongoing royalty, pending additional briefing on the appropriate royalty rate. That briefing closed on September 23, 2024. While a future ongoing royalty is pending briefing and a decision by the Court, the Company recorded an estimated liability for a royalty based on information available as of September 30, 2024. It is reasonably possible that a change in the estimate may occur pending the Court’s decision on the appropriate royalty rate. On August 28, 2024, Avadel filed a notice of appeal concerning the August 27, 2024 injunction (the “Patent Appeal”). On September 3, 2024, Avadel moved in District Court to stay the August 27, 2024 injunction pending appeal. Briefing on that motion closed on September 16, 2024. On September 24, 2024, the District Court denied Avadel’s motion to stay the injunction pending appeal. On September 6, 2024, Avadel moved in the U.S. Court of Appeals for the Federal Circuit to stay the injunction pending appeal. Briefing on that motion closed on September 27, 2024. On October 2, 2024, the Federal Circuit granted Avadel’s motion in part, staying the injunction with respect to Avadel’s initiating new clinical trials or studies. On September 10, 2024, the Federal Circuit entered a briefing schedule concerning the Patent Appeal. On September 30, 2024, Avadel filed its opening brief. Jazz filed its response brief November 7, 2024. Avadel’s reply brief is due November 18, 2024. On October 2, 2024, the Federal Circuit placed the Patent Appeal on the February 2025 oral argument calendar. Second Jazz Complaint On August 4, 2021, Jazz filed another formal complaint (the “Second Complaint”) initiating a lawsuit in the Court against the Avadel Parties. In the Second Complaint, Jazz alleges the Proposed Product described in the NDA owned by Avadel CNS will infringe at least one claim of U.S. Patent No. 11077079. The Second Complaint further includes typical relief requests such as preliminary and permanent injunctive relief, monetary damages and attorneys’ fees, costs and expenses. On September 9, 2021, the Avadel Parties timely filed their Answer and Counterclaims (the “Second Avadel Answer”) with the Court in response to the Second Complaint. The Second Avadel Answer generally denies the allegations set forth in the Second Complaint, includes numerous affirmative defenses (including, but not limited to, non-infringement and invalidity of the patent-in-suit), and asserts a number of counterclaims seeking i) a declaratory judgment of non-infringement of the patent-in-suit, and ii) a declaratory judgment of invalidity of the patent-in-suit. On October 22, 2021, the Court issued an oral order stating that this case should proceed on the same schedule as the case filed on May 12, 2021. On September 7, 2022, the case was reassigned to a new judge. Third Jazz Complaint On November 10, 2021, Jazz filed another formal complaint (the “Third Complaint”) initiating a lawsuit in the Court against the Avadel Parties. In the Third Complaint, Jazz alleges the Proposed Product described in the NDA owned by Avadel CNS will infringe at least one claim of U.S. Patent No. 11147782. The Third Complaint further includes typical relief requests such as preliminary and permanent injunctive relief, monetary damages and attorneys’ fees, costs and expenses. This case will proceed on the same schedule as the cases associated with the First and Second Complaints above. On December 21, 2021, the Court entered a revised schedule for the First, Second and Third Complaints, setting a new claim construction date of August 31, 2022. On January 7, 2022, Avadel CNS timely filed its Answer and Counterclaims (the “Third Avadel Answer”) with the Court in response to the Third Complaint. The Third Avadel Answer generally denies the allegations set forth in the Third Complaint, includes numerous affirmative defenses (including, but not limited to, non-infringement and invalidity of the patent-in-suit), and asserts a number of counterclaims seeking i) a declaratory judgment of non-infringement of the patent-in-suit, and ii) a declaratory judgment of invalidity/unenforceability of the patent-in-suit. On September 7, 2022, the case was reassigned to a new judge. Fourth Jazz Complaint On July 15, 2022, Jazz filed another formal complaint (the “Fourth Complaint”) initiating a lawsuit in the Court against Avadel CNS. In the Fourth Complaint, Jazz alleges the Proposed Product described in the NDA owned by Avadel CNS will infringe at least one claim of the REMS Patent, which was asserted in the First Complaint. The FDA required Avadel CNS to file a Paragraph IV certification against the REMS Patent, which Avadel CNS did under protest, consistent with its Renewed Motion for Judgment on the Pleadings for the delisting of the REMS Patent from the Orange Book, which was later ordered to be delisted in the above First Jazz Complaint action. Avadel CNS provided the required notice of its Paragraph IV certification to Jazz, and Jazz reasserted the REMS Patent in a separate action following receipt of that notice. The Fourth Complaint further includes typical relief requests such as preliminary and permanent injunctive relief, monetary damages and attorneys’ fees, costs and expenses. On September 7, 2022, the case was reassigned to a new judge. On September 21, 2022, Jazz served the Fourth Complaint. On October 21, 2022, Avadel CNS timely filed its Answer and Counterclaims (the “Fourth Avadel Answer”) with the Court in response to the Fourth Complaint. The Fourth Avadel Answer generally denies the allegations set forth in the Fourth Complaint, includes numerous affirmative defenses (including, but not limited to, non-infringement and invalidity of the patent-in-suit), and asserts a number of counterclaims for i) a declaratory judgment of non-infringement of the patent-in-suit, ii) a declaratory judgment of invalidity/unenforceability of the patent-in-suit, iii) delisting of the patent-in-suit from the Orange Book; iv) monopolization under the Sherman Antitrust Act of 1890 (the “Sherman Act”); and v) attempted monopolization under the Sherman Act. On December 9, 2022, Jazz filed a Motion to Dismiss Avadel’s Antitrust Counterclaims. Avadel filed its opposition brief on December 27, 2022, and Jazz filed its reply brief on January 6, 2022. On January 11, 2023, Avadel filed a request for oral argument on the motion. On May 24, 2024, the Court denied Jazz’s Motions to Dismiss. On June 7, 2024, Jazz filed its Answer to Avadel’s Counterclaims. On March 6, 2023, the parties filed a stipulation of dismissal, dismissing Jazz’s claims with respect to the REMS Patent and Avadel CNS’s related non-infringement and invalidity counterclaims. The Court entered that stipulation on March 7, 2023. On May 19, 2023, the Court issued a scheduling order establishing timing for litigation events including i) completion of fact discovery by March 14, 2024, and ii) a deadline for case dispositive motions of September 20, 2024. On January 23, 2024, the parties submitted a stipulation to extend the case schedule. On January 24, 2024, the Court ordered an extension of the case schedule, including i) completion of fact discovery by June 20, 2024 and ii) a deadline for case dispositive motions by January 31, 2025. On January 24, 2024, the Court issued an order setting a pretrial conference for October 30, 2025 and a 5-day trial to begin on November 3, 2025. On April 22, 2024, the parties submitted a stipulation extending certain pretrial deadlines, including i) extending completion of fact discovery to September 27, 2024 and ii) extending the deadline for case dispositive motions to April 4, 2025. On June 29, 2023, Jazz filed a Motion to Stay the case, pending resolution of its Motion to Dismiss. Briefing on that Motion to Stay closed on August 10, 2023. On March 13, 2024, Jazz filed a Supplemental Motion to Stay, pending the resolution of the post-trial briefing and any appeals from the February Patent Trial. On May 24, 2024, the Court denied Jazz’s Motions to Stay. On June 7, 2024, Jazz filed a Motion for Reargument or in the Alternative to Certify an Appeal. Avadel filed its opposition brief on June 28, 2024. Jazz filed its reply brief on July 12, 2024. On September 25, 2024, Jazz sought leave to file a supplemental brief in support of its Motion to Stay. On October 4, 2024 the Court granted leave to Jazz to file its supplemental brief, which Jazz filed on October 7, 2024. Avadel filed its response on October 21, 2024, and Jazz subsequently filed its reply on October 28, 2024. Jazz’s motion remains pending. Avadel Complaint On April 14, 2022, Avadel CNS and Avadel Pharmaceuticals plc (collectively the “Avadel Plaintiffs”) filed a formal complaint (the “Avadel Complaint”) initiating a lawsuit in the Court against Jazz and Jazz Pharmaceuticals Ireland Ltd. (collectively, the “Jazz Parties”). In the Avadel Complaint, the Avadel Plaintiffs allege that the Jazz Parties breached certain confidential disclosure agreements and misappropriated certain of the Avadel Plaintiffs’ trade secrets. The Avadel Complaint further includes typical relief requests such as injunctive relief, monetary damages and attorneys’ fees, costs and expenses, as well as seeking correction of inventorship of certain Jazz patents, for which the Jazz Parties claim ownership, to include former Avadel Plaintiffs’ scientists. On June 2, 2022, Jazz answered the Avadel Complaint. The Answer generally denies the allegations set forth in the Avadel Complaint and includes various affirmative defenses. On July 8, 2022, Jazz filed a Motion for Judgment on the Pleadings seeking to have all Counts dismissed for failure to state a claim upon which relief can be granted. The Avadel Plaintiffs’ response to that Motion was filed with the Court on July 29, 2022. Jazz’s reply was filed with the Court on August 5, 2022. On February 2, 2023, the Court held a hearing on Jazz’s Motion for Judgment on the Pleadings. On September 7, 2022, the case was reassigned to a new judge. On February 2, 2023, the Court held a hearing on Jazz’s Motion for Judgment on the Pleadings. On July 18, 2023, the Court denied Jazz’s Motion for Judgment on the Pleadings. On August 15, 2023, the parties submitted competing proposed scheduling orders, and Avadel requested consolidation with the above First Jazz Complaint litigation. That request for consolidation was denied on November 3, 2023. On November 17, 2023, the parties submitted an updated joint proposed scheduling order. On January 30, 2024, the parties agreed to a 6-week stay of discovery and submitted a proposed stipulation extending certain case deadlines to accommodate the same. On February 9, 2024, the parties submitted an updated proposed scheduling order consistent with that stipulation, setting the close of fact discovery for August 9, 2024 and a trial date of December 15, 2025. That proposed scheduling order remains pending before the Court as of the date of this Quarterly Report on Form 10-Q. On March 19, 2024, Jazz filed a Motion to Stay, pending the resolution of the post-trial briefing and any appeals from the February Patent Trial. On May 24, 2024, the Court denied Jazz’s Motions to Stay. On May 10, 2024, the Court issued a scheduling order establishing timing for litigation events including i) completion of fact discovery by August 9, 2024, ii) a deadline for case dispositive motions of May 30, 2025, and iii) a 5-day jury trial beginning December 15, 2025. On June 11, 2024, the Court entered a stipulation by the parties extending certain case deadlines, including i) extending close of fact discovery to November 1, 2024 and ii) dispositive motions to July 18, 2025. On July 3, 2024, Jazz filed an Amended Answer to the Avadel Complaint. The Amended Answer generally denies the allegations set forth in the Avadel Complaint and includes various affirmative defenses. On September 6, 2024, Avadel and Jazz stipulated to stay proceedings pending the resolution of the Patent Appeal above, which the Court entered on September 9, 2024. Jazz’s Administrative Procedure Act Complaint On June 22, 2023, Jazz filed an Administrative Procedure Act suit against the FDA, the U.S. Department of Health and Human Services, the Secretary of Health and Human Services and the Commissioner of Food and Drugs (the “Federal Defendants”) in the United States District Court for the District of Columbia (the “DC Court”) related to the NDA for LUMRYZ. This suit alleges that the FDA’s approval of LUMRYZ was an unlawful agency action and asks the DC Court to set aside FDA’s approval of LUMRYZ. On June 28, 2023, the DC Court granted Avadel CNS’s unopposed motion to intervene in the case to defend the FDA’s decision. On August 14, 2023, the DC Court entered a scheduling order establishing timing for litigation events including early summary judgment briefing closing December 22, 2023. On September 22, 2023, Jazz filed its Motion for Summary Judgment. On October 20, 2023, the FDA and Avadel filed their Cross Motions for Summary Judgment. Briefing on the parties’ motions closed January 4, 2024. On February 14, 2024, the DC Court set a hearing for oral argument on the parties’ motions for February 27, 2024. On February 21, 2024, the DC Court rescheduled the oral argument to April 9, 2024. On April 2, 2024, the DC Court rescheduled the oral argument to May 10, 2024. On May 10, 2024, the DC Court heard oral arguments on the parties’ motions. On October 30, 2024, the DC Court granted FDA and Avadel’s Motions for Summary Judgment with respect to the sole count in Jazz’s complaint and denied Jazz’s Motion for Summary Judgment regarding the same. Material Commitments Other than commitments disclosed in Note 14: Contingent Liabilities and Commitments to the Company's consolidated financial statements included in the Annual Report on Form 10-K, there were no other material commitments outside of the normal course of business.

Other Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

Other Liabilities Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Various other assets and liabilities are summarized as follows:


Prepaid Expenses and Other Current Assets:	September 30, 2024		December 31, 2023

Prepaid and other expenses	$	6,306	$	4,373
Other	1,946		2,235

Total	$	8,252	$	6,608

Schedule of Other Non-Current Assets


Other Non-Current Assets:	September 30, 2024		December 31, 2023

Right of use assets at contract manufacturing organizations	$	11,361	$	9,905

Other	399		579

Total	$	11,760	$	10,484

Schedule of Accrued Expenses


Accrued Expenses:	September 30, 2024		December 31, 2023

Accrued professional fees	$	14,694	$	11,961
Reserves for variable consideration	11,599		4,044
Accrued compensation	5,738		7,492
Royalty payable to RTW	1,876		730


Total	$	33,907	$	24,227

Schedule of Other Non-Current Liabilities


Other Non-Current Liabilities:	September 30, 2024		December 31, 2023

Tax liabilities	$	5,068	$	5,407
Other	86		247
Total	$	5,154	$	5,654

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 28,582	$ 31,167
Marketable securities	37,225	73,944
Accounts receivable, net	37,102	12,103
Inventories	16,097	10,380
Prepaid expenses and other current assets	8,252	6,608
Total current assets	127,258	134,202
Property and equipment, net	469	585
Operating lease right-of-use assets	1,930	2,591
Goodwill	16,836	16,836
Other non-current assets	11,760	10,484
Total assets	158,253	164,698
Current liabilities:
Current portion of operating lease liability	725	934
Accounts payable	7,917	11,433
Accrued expenses	33,907	24,227
Other current liabilities	234	261
Total current liabilities	42,783	36,855
Long-term operating lease liability	1,216	1,690
Royalty financing obligation	34,437	32,760
Other non-current liabilities	5,154	5,654
Total liabilities	83,590	76,959
Shareholders’ equity:
Preferred shares, nominal value of $0.01 per share; 50,000 shares authorized; zero issued and outstanding at September 30, 2024 and 5,194 issued and outstanding at December 31, 2023	0	52
Ordinary shares, nominal value of $0.01 per share; 500,000 shares authorized; 96,338 issued and outstanding at September 30, 2024 and 89,825 issued and outstanding at December 31, 2023	963	898
Additional paid-in capital	886,787	855,452
Accumulated deficit	(789,285)	(745,496)
Accumulated other comprehensive loss	(23,802)	(23,167)
Total shareholders’ equity	74,663	87,739
Total liabilities and shareholders’ equity	$ 158,253	$ 164,698

Revenue Recognition

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The Company’s source of net product revenue during the three and nine months ended September 30, 2024 and 2023 consists solely of sales of LUMRYZ in the U.S.

For the three and nine months ended September 30, 2024 and 2023, three customers accounted for 100% of sales. The following table presents a summary of the percentage of total gross sales to customers:


	Three Months Ended September 30,				Nine Months Ended September 30,
Sales by Customer:	2024		2023		2024		2023

Caremark	43	%	41	%	46	%	41	%
Accredo	39	%	38	%	37	%	38	%
Optum	18	%	21	%	17	%	21	%

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Net Loss Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Net Loss Per Share

Basic net loss per share is calculated by dividing net loss by the weighted average number of shares outstanding during each period. Diluted net loss per share is calculated by dividing net loss by the diluted number of shares outstanding during each period. Except where the result would be anti-dilutive to net loss, diluted net loss per share would be calculated assuming the impact of the conversion of the 4.50% exchangeable senior notes due February 2023 (“February 2023 Notes”) and the 4.50% exchangeable senior notes due October 2023 (“October 2023 Notes”, together, the “2023 Notes”), the conversion of the Company’s preferred shares, the exercise of outstanding equity compensation awards, and ordinary shares expected to be issued under the Company’s Employee Share Purchase Plan (“ESPP”).

The Company had a choice to settle the conversion obligations under the 2023 Notes in cash, shares or any combination of the two. The Company utilized the if-converted method to reflect the impact of the conversion of the 2023 Notes, unless the result was anti-dilutive. This method assumed the conversion of the 2023 Notes into shares of the Company’s ordinary shares and reflected the elimination of the interest expense related to the 2023 Notes. The Company had no 2023 Notes remaining as of December 31, 2023. See Note 10: Long-term debt of the audited consolidated financial statements included in our Annual Report on Form 10-K for further details.

The dilutive effect of the stock options, restricted share awards, preferred shares and ordinary shares expected to be issued under the Company’s ESPP has been calculated using the treasury stock method.

A reconciliation of basic and diluted net loss per share, together with the related shares outstanding in thousands is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
Net Loss Per Share:	2024		2023		2024		2023

Net loss	$	(2,625)	$	(36,274)	$	(43,789)	$	(131,490)



Weighted average shares:
Basic shares	96,300		89,380		94,720		76,931
Effect of dilutive securities—employee and director equity awards outstanding, preferred shares and 2023 Notes	—		—		—		—

Diluted shares	96,300		89,380		94,720		76,931

Net loss per share - basic	$	(0.03)	$	(0.41)	$	(0.46)	$	(1.71)
Net loss per share - diluted	$	(0.03)	$	(0.41)	$	(0.46)	$	(1.71)

Potential ordinary shares of 1,437 and 2,509 were excluded from the calculation of weighted average shares for the three months ended September 30, 2024 and 2023, respectively, and 1,168 and 5,336 were excluded from the calculation of weighted average shares for the nine months ended September 30, 2024 and 2023, respectively, because their effect was considered to be anti-dilutive or they were related to shares from performance share unit awards for which the contingent vesting condition had

not been achieved. For the three and nine months ended September 30, 2024 and 2023, the effects of dilutive securities were entirely excluded from the calculation of net loss per share as a net loss was reported in these periods.

Fair Value Measurement

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurement

The Company is required to measure certain assets and liabilities at fair value, either upon initial recognition or for subsequent accounting or reporting. For example, the Company uses fair value extensively when accounting for and reporting certain financial instruments. Fair value is estimated by applying the hierarchy described below, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement.

ASC 820, Fair Value Measurement, defines fair value as a market-based measurement that should be determined based on the assumptions that marketplace participants would use in pricing an asset or liability. When estimating fair value, depending on the nature and complexity of the asset or liability, the Company may generally use one or each of the following techniques:

•Income approach, which is based on the present value of a future stream of net cash flows.

•Market approach, which is based on market prices and other information from market transactions involving identical or comparable assets or liabilities.

As a basis for considering the assumptions used in these techniques, the standard establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:

•Level 1 - Quoted prices for identical assets or liabilities in active markets.

•Level 2 - Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are directly or indirectly observable, or inputs that are derived principally from, or corroborated by, observable market data by correlation or other means.

•Level 3 - Unobservable inputs that reflect estimates and assumptions.


	As of September 30, 2024						As of December 31, 2023
Fair Value Measurements:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3

Marketable securities (see Note 4)


Government securities - U.S.	$	37,225	$	—	$	—	$	73,944	$	—	$	—

Total assets	$	37,225	$	—	$	—	$	73,944	$	—	$	—

A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. During the periods ended September 30, 2024 and December 31, 2023, there were no transfers in and out of Level 3. During the three and nine months ended September 30, 2024 and 2023, the Company did not recognize any allowances for credit losses.

Some of the Company’s financial instruments, such as cash and cash equivalents, accounts receivable and accounts payable, are reflected in the unaudited condensed consolidated balance sheets at carrying value, which approximates fair value due to their short-term nature.

Royalty Financing Obligation

As of September 30, 2024, the carrying value of the royalty financing obligation under the Royalty Purchase Agreement (“RPA”) approximated its fair value and was measured using the estimates of forecasted net product revenue based on current contractual and statutory requirements, specific known market events and trends, industry data, historical trends, current and expected patient demand and forecasted customer buying and payment patterns (Level 3 inputs). See Note 6: Royalty Financing Obligation for additional information regarding the Company’s royalty financing obligation.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details