Avadel Pharmaceuticals PLC Q4 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Frantois Brisebois - Oppenheimer & Co. Inc. - Analyst : All right. Thanks for taking the question. Richard, I think you mentioned over 70% of the top 500 prescribers, I think, represent like 50% of the Scripps here have prescribed LUMRYZ already. Do you give any granularity as to if they're repeat prescribers, if they've done it with multiple patients? Is there a percentage of that, or is there kind of a feel of a bullish start? Any color there would be helpful.

Question: Frantois Brisebois - Oppenheimer & Co. Inc. - Analyst : Okay, great. And then in terms of the -- I don't know -- does reimbursement have an impact here on how quickly someone gets the product in their -- patient gets the product in hand? Is that evolving with time? Or any color there at all would be helpful. Thank you.

Question: Frantois Brisebois - Oppenheimer & Co. Inc. - Analyst : Okay, great. Thank you, and congrats on the quarter, guys.

Question: Ami Fadia - Needham & Company, LLC - Analyst : Hi. Good morning. Thanks for taking my question, and congrats on all the progress that you've made. Maybe two questions from me. Firstly, just with regards to Anthem. What percent of the Zinc GPO volume is Anthem? And maybe for United, what percent of MSR would that comprise? And maybe if you could sort of also comment on just general progress in terms of pull through at the individual formerly level across the three different GPOs, that would be helpful to understand. And maybe, my second question is, what are you doing to continue to drive this growth at the top of the funnel in terms of adding more patients to RYZUP? And what are some of the objectives for 2024 with that regard? Thank you.

Question: Ami Fadia - Needham & Company, LLC - Analyst : Got it. Thank you.

Question: Andrew Tsai - Jefferies Group LLC - Analyst : Hey, good morning. Congrats on the strong execution, and thanks for taking our questions. So the first one is around conversion rates and discontinuation rates. 2,200 patients have cumulatively signed up. It's a great number. You've confirmed break even for this year. So is it still fair to assume that most or the large majority of these sign-ups are bound to convert, suggesting discontinuation rates should still remain very favorable, maybe directionally well below 25%? And secondly, you're on a great trajectory with the strong monthly adds, the healthy conversion rates. Again, you're blasting 2024 sell-side consensus numbers. So obviously, the trajectory cannot last forever. So when should the Street start to consider or model a change in the slope? Thank you.

Question: Andrew Tsai - Jefferies Group LLC - Analyst : Great. Thanks, again, and looking forward to seeing more good news.

Question: David Amsellem - Piper Sandler & Co - Analyst : Hey, thanks. So on the pediatric opportunity, can you talk about realistically how many patients you could capture or percentage of the market you think you can capture with a once-nightly modality? So that's number one. And then in IH, how are you thinking about that opportunity in terms of your ability to either expand the market? Or do you think you get a lot of capture from patients who are on the low-sodium twice nightly oxybate product? Just how you're thinking about those commercial dynamics in IH. Thank you.

Question: David Amsellem - Piper Sandler & Co - Analyst : Okay. Thanks, Greg.

Question: Ashwani Verma - UBS Group AG - Analyst : Thanks. Good morning. Congrats from my side as well. So I have two questions. In terms of the switch patients, can you provide some color on how much of the use is coming from Xyrem versus Xywav? A lot of us were surprised to see that Xywav narcolepsy patients are starting to flatten out in the most recent quarter. And then secondly, if you can briefly mention if you're seeing any off-label use on the IH side? Thanks.

Question: Ashwani Verma - UBS Group AG - Analyst : Thank you.

Question: Myriam Belghiti - LifeSci Capital LLC - Analyst : Thank you. Good morning. Just a quick question for me. Can you comment on patient type signing up to the RYZUP program and if you see any differentiation than those that ultimately receive therapy? Is it a similar process for naive patients, discontinued patients, and such patients going through the RYZUP program?

Question: Myriam Belghiti - LifeSci Capital LLC - Analyst : Okay, got it. And then you spoke of a KOL-led speaker program today. Can you provide a bit more detail on what that entails?

Question: Myriam Belghiti - LifeSci Capital LLC - Analyst : Okay. Got it. Congrats again on the great year.

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : Good morning, guys. Yeah. Great update. Share my congrats as well. So, I just want to maybe better characterize those patients that sit in the RYZUP program for longer. In some instances, it looks like much longer than the one month average you kind of mentioned. So just generally, what are the characteristics of these patients that sit on the program? And do they not just meet the -- do they just not meet the PA criteria? And then should we still think of conversion rate there reaching very high numbers, or some of these patients just going to sit on the program? Thanks.

Question: Chase Knickerbocker - Craig-Hallum Capital Group - Analyst : Thanks, Makes sense, Richard. Thank you.

Question: Rudy Li - Leerink Partners LLC - Analyst : Thanks for taking my question. This is Rudy on the line for Marc. Congrats on the strong results. So I have question regarding the market dynamics. Do you see the total oxy market continue to expand in the coming years? I'm also curious about your thoughts on the opportunity of the oxy products. And do you see any potential impact in the oxybate in NT1 versus NT2 and IH? Thanks.

Question: Rudy Li - Leerink Partners LLC - Analyst : Thanks.

Question: Matt Kaplan - Ladenburg Thalmann & Co - Analyst : Hi, good morning, guys. Thanks for taking the questions. I guess, maybe can you provide some more color in terms of what you're hearing with respect to how important the low sodium formulation is in the marketplace right now, and your strategy there as you move forward your formulation?

Question: Matt Kaplan - Ladenburg Thalmann & Co - Analyst : Okay. That's helpful. And then a second question. In terms of the IH opportunity, you stated that you plan to launch your study second half this year. Can you give us more detail in terms of the potential timeline there and of that program?

Question: Matt Kaplan - Ladenburg Thalmann & Co - Analyst : Sounds good. Thanks a lot.

Question: Oren Livnat - HC Wainwright & Co. - Analyst : Thanks. Congrats on the fast ramp here. I have a couple. First, I think, I'm tense in the queue here, and nobody's asked about the elephant in the room, so I will. Can you talk about your statement up front about your confidence in that, whatever the jury decides, presumably any day now, your confidence in the potential of LUMRYZ? Why are you confident about the outcomes? And what do you think the scenarios could be going forward? And also, do you have any update on timing around the APA lawsuit that are obviously publicly available or whatever color you might have on that front? And then I have a follow up. Thanks.

Question: Oren Livnat - HC Wainwright & Co. - Analyst : Okay. And as I try to square your commentary and your ramp with Jazz's guidance, it seems like market growth must be an important variable there. They say you're not growing the market that much yet. I think, you've highlighted certainly that obviously most of your adds are from switchers, which is as expected. But going forward through 2023 and -- or 2024 and beyond, how confident are you that you can grow the market more and accelerate that growth as your product's been out there longer with regards to bringing back prior discontinuers and whether those patients are identified to you or your customers and new diet patients being added?

Question: Oren Livnat - HC Wainwright & Co. - Analyst : That's helpful. And just one last follow up. Can you comment at all on, I guess, net pricing or gross to nets, I guess, in fourth quarter or annualized in general now going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 04, 2024 / 12:30PM, AVDL.OQ - Q4 2023 Avadel Pharmaceuticals PLC Earnings Call

Question: Oren Livnat - HC Wainwright & Co. - Analyst : All right. Thanks.

Question: Oren Livnat - HC Wainwright & Co. - Analyst : I'll follow up with you guys after.