Thomas S. McHugh, the Chief Financial Officer of Avadel Pharmaceuticals PLC (NASDAQ:AVDL), recently purchased 5,000 ordinary shares of the company, according to a Form 4 filing with the Securities and Exchange Commission. The shares were acquired at an average price of $10.4865 per share, amounting to a total transaction value of $52,432. This insider purchase comes as the stock trades near its 52-week low of $9.41, having declined 39% year-to-date. According to InvestingPro data, analysts maintain price targets ranging from $20 to $27, suggesting significant upside potential. Following this transaction, McHugh holds a total of 85,500 shares directly. The company, currently valued at $978 million, maintains impressive gross profit margins of 92% and operates with moderate debt levels. For deeper insights into AVDL's financial health and valuation metrics, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis and future growth projections.
In other recent news, strong third-quarter results have been reported by Avadel Pharmaceuticals, with $50 million in net revenue from their narcolepsy medication, LUMRYZ, and a positive adjusted EBITDA of $6.1 million. The FDA has extended approval for LUMRYZ's use to pediatric narcolepsy patients aged seven and older. However, the company's Chief Commercial Officer, Richard Kim, announced his resignation, effective from December 31. Despite his departure, Kim remains eligible for the 2024 incentive compensation. H.C. Wainwright reaffirmed a Buy rating on Avadel but reduced the stock price target from $27.00 to $25.00 following the third-quarter results. The firm believes Avadel's stock is significantly undervaluing LUMRYZ, even with less than 25% projected peak market share.
Alkermes (NASDAQ:ALKS) has also been in the spotlight with Piper Sandler maintaining an Overweight rating on the company, influenced by the potential of ALKS-2680, an orexin 2 receptor (OX2R) agonist in development for the treatment of sleep/wake disorders. A leading sleep expert highlighted the drug's transformative potential across narcolepsy subtypes and idiopathic hypersomnia (IH), suggesting significant improvements in wakefulness compared to existing treatments. The safety profile of the drug is considered relatively benign, potentially supporting its use as a monotherapy for these conditions.
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