Avadel inventory surges 13% as Jefferies upgrades on alternative to dent Jazz’s market share

Avadel Prescription drugs (NASDAQ:AVDL) inventory rose ~13% on Wednesday after Jefferies Monetary upgraded the shares to Purchase from Maintain on alternative of taking market share from Jazz Prescription drugs’ (NASDAQ:JAZZ) oxybate franchise.

The SA Quant Ranking on AVDL is Maintain, which is in distinction to the typical Wall Avenue Analysts’ Ranking of Purchase.

The agency additionally raised the worth goal to $11 from $6.50. Jefferies famous that it elevated peak sufferers on the corporate’s sleep problem remedy Lumryz to ~5K after a survey of 11 sleep docs and two key opinion leaders (KOLs) calls on extra switches from Jazz’s drug Xyrem and fewer loss to generics.

Earlier in November, a court docket dominated in Avadel’s favor over patent dispute with Jazz associated to narcolepsy remedy Xyrem. The court docket had ordered Jazz to delist U.S. Patent no. 873193 ((the REMS Patent)) from the FDA’s Orange Ebook.

With the court docket determination, Avadel is searching for to speed up the FDA’s ultimate approval of Lumryz. The drug had obtained tentative approval to deal with extreme daytime sleepiness (EDS) or cataplexy in adults with narcolepsy.

Jefferies believes the swap affected person alternative is bigger than it had beforehand estimated.

The agency added that the remaining uncertainties embody a quickly altering narcolepsy therapy enviornment and unlikelihood of bringing again oxybate d/c sufferers, amongst different issues.

The once-daily Lumryz is a formulation of sodium oxybate which makes use of Avadel’s proprietary drug supply know-how, in accordance with the corporate.