AVDL - Earnings call 3 2023 | Avadel Pharmaceuticals plc

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Operator

Greetings, and welcome to the Avadel Pharmaceuticals Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce Austin Murtagh with Stern Investor Relations.

You may begin.

Austin Murtagh

Good morning, and thank you for joining us on our conference call to discuss Avadel's Third Quarter 2023 Earnings.

of we forward-looking following of statements Securities Reform before matters includes the reminder, Litigation constitute that within Act a begin, presentation the several Private As XXXX. the meaning

in risks the public Forward-looking statements results differ Exchange filings uncertainties statements. under from materially are uncertainties forward-looking included could contemplated such risks cause the to in and the those These are for actual that described Form to XX-K subject and filed in Act was law, on XX, ended obligation December presentation which year new future Except forward-looking by XXXX, subsequent to and required to any information, filings. this events Aveda March SEC contained revise XX, XXXX, no in or statements reflect update otherwise. as or undertakes Avadel's

Chief Divis, Executive McHugh, us President will Greg are for Officer; and Kim, of Affairs, Commercial Goodman, today call Financial Medical the Chief Senior Chief Tom join Q&A. Dr. Officer; Officer. Jennifer Vice Clinical Richard and On

I'll the this At to Greg. turn time, call over

Gregory Divis

Austin. and you, to morning, everyone, quarter we the results. We're launch LUMRYZ. for Avadel's review have thank third progress of Good joining share with excited to the XXXX Thank us made you

QX will will will my launch results, Tom Following update of provide financial conclude we our on a Richard an and with progress. a review session. our opening provide remarks, question-and-answer

positions was seeing. are for the launch. full during well the continued early we demand of Avadel first We early robust a quarter are we our fully during important and believe incredibly launch. lies quarter with the pleased launch for transition is Avadel we trends months LUMRYZ we third as transformational on The as building this tremendous company momentum generated execute for building very and foundation to these success built that ahead us a are commercial-stage There emerging opportunity and

revenue. LUMRYZ the patients momentum generated X this patients patient across million the morning: key the Greater coverage the lives, approximately initiated RYZUP, representing XXX in therapy progress in launch in in announced payer plans, than XXX of the who all enrolled X,XXX which metrics, LUMRYZ QX, of even evidence reimbursed. than payer more and of for XX. strong segments key are getting During patient on program services LUMRYZ no September fully launch in patient $X create narcolepsy during Expanded obtaining and with patients health quarter, front better than population There's all coverage of process this this the growth XX% greater and all and continues to net of representing as on early across our resulted RYZUP we of this demand enrolled access KPIs eligible and majority commercial

completed previously are oxybate. now Additionally, care nearly an providers LUMRYZ who REM including prescribed X,XXX there process, providers certification have the health never have who

and We're believe very with and these to we've had of indicators have are we presentations and the attended potential poster patients. Brazil, the and we eligible demonstrating data, oral detailing encore in and X further recently Janeiro, advanced there at encouraged LUMRYZ, all early profile team de benefit launch clinical Furthermore, shared Sleep as of World Rio by where interest the LUMRYZ. our for LUMRYZ clear data the presentations robust of XX support engagement new strong KPIs profit stakeholders clinical

the benefit could and this life to our management expand cycle patient And our who population from has looking LUMRYZ provide and stakeholders. value to is advancing potential future, as our forward to the the also the believe opportunities long-term team company we

currently the approval of second or we announce half the that to a expect to EDS, treatment cataplexy narcolepsy decision submitted FDA an application supplemental pleased new the and the yesterday, pediatric drug are for for XXXX. in We LUMRYZ population of in

population, pediatric treated on families to narcolepsy the for burden to into X% not only the addressable LUMRYZ, alleviate support of but and total approximately oxybated who potential has total current also greatly expanding oxybate the the X% household increases second as caregivers option Comprising the inevitably of chronically children population market availability people administer twice-nightly oxybate regimen up with welcome children. first-generation narcolepsy. the for We and multiple will these believe requires caregivers to after to potentially dosing a in treatment families night night their once-at-bedtime the wake dose the living

interactions from progress or multicenter a making for the IH. to be hypersomnia, Additionally, And initiate could upon we're opinion planning associated we that idiopathic sleep inertia once-at-bedtime based LUMRYZ the leaders, deep very controlled IH. for with value those with our trial suffering our with randomized key believe, proposition clinical compelling

preclinical the the we once-in-time for small management on thing no subset potential our last patients. life development front, or cycle oxybate-eligible sodium-sensitive oxybate of formulation our And of sodium are continuing low

always, we to programs these intend provide on As as updates appropriate.

reach strong the months of and balance we operations and a impact. ongoing support achieved to initial With launch, significant hyper-focused the progress our in sheet and on the our launch the LUMRYZ expanding remain

delivering we on revenue market the remain a all this in LUMRYZ the than committed on opportunity. maintain our right command QX, to meaningful are a with coming that believe are relentless for we to greater billion multibillion-dollar momentum New and of And view of We and $X oxybate out is annual track stakeholders. positive promise of share

for over Richard. on With to recent call I'll progress. details our that, turn the commercial Richard

Richard Kim

be first on and our great discuss to It's launch. today of this Greg, quarter to call good Thanks, so morning, everyone.

a seeing privilege been August, Northwest Let commercial and Since me has extremely the full to LUMRYZ overall team the across community. the field has real start the our by country, to feedback in specialists positive. bring saying it's been

iris We LUMRYZ are impact the community see long people oxybate expectations impact at of beyond that available consistently and each could their reps. every for we a treatment for options. that happening to out heard other once-at-bedtime take narcolepsy We've day. And the potential from in about to has it narcolepsy have now people the about hear a time that

and the with on impact life having. specialist, to one it impressions sleep I'd start we've with like of is many the example their had

specialist with The During a August. person we few a a sleep his weeks first enrolled in LUMRYZ RYZUP started on later. recent field a drive, patient who met

to mix-out The was start Now the grams patient she night, per taking ready morning is the once-at-bedtime and refresh day." patient limit to said, this grams X.X of switched through X.X has previously the more LUMRYZ. "We on and sleeping for of night consistently remained product first-generation

has LUMRYZ changer been patient. an absolute game for this

more with experience, this the one X hands to enrollments clinical journey While just example and committed is had on RYZUP. great sleep of subsequently initial LUMRYZ gain or specialists into initial patient the success

that an decile the patient dedication super from patients early are first our seeing from of first-generation To preparation at strategic about we've work oxybate start of benefit discontinuation enrollment first-generation we We're today full the previously who quarter more From oxybate. Switch this from are sourced that twice Thus our slightly launch, into oxybate on therapy to progress to generation coming discontinued patients oxybate through X,XXX X are the majority our Patients echo patient products. being the the RYZUP hard share on data, Greg, tried and with enrollments trend and our had than we our first are our are there believe coming mix target our strong reflects product in compared segments. of far, from twice clinical all to patients. center. LUMRYZ, pleased RYZUP, support excited greater team. and and patient oxybate-naive

REM-certified. of Through there HCPs who were are nearly X,XXX September, the end

X/X high-line prescribers total and all reminder, make penetration of XX% rise the of As market target The includes our HCPs a about greatest of prescription core oxybate who high-volume account up for REM-certified X,XXX from they prescribers, come HCPs thus far. these volume. the enrollments has oxybate

distant oxybate Although oxybate. the have patients are RYZUP patients and patients, prescribed previously first-generation coming also never oxalate previously from trends early, prescribers from who with an

first-generation were of used. set data the assume oxybates early market for beyond twice-nightly growing Our the LUMRYZ limitations our

We increasing rights with RYZUP LUMRYZ commercially the enrollments. within quarter grow saw XXX come majority initiated we patients announced also treatment more the online. initiated are to who coverage had of on by greater Supported the number pacing network of payer reimbursed. the begins we patients The Today, to quarter, as than third in LUMRYZ.

XX% discontinuation month Additionally, and launch, discontinuation seeing from although lower generation X early at first rate than we're trends oxybates. are the that in

debt that we all time about to enrollment X it When there main think emerging. and arise, fill the generally segments are the takes are

coverage have on average be about and in a products month. can These patients ship authorization who processed prior those First, criteria. a

of expand, this coverage segment will our of As payers grow. patients continue to

formal couple and occurring is a smaller for medical a necessity longer. consists Now This denials and coverage without grows. on a decision. bit as with setting More getting that policy segment pair like our average going a appeal, coverage could take sooner process patients some of months bit of This generally from HCP even longer. a

dropping see out these and taking cases However, we few importantly, RYZUP longer despite very the process. of people also to very fulfill,

convert shipment. currently the that in benefits were loss the or as through of complete on Based months investigation September, And process a RYZUP of pending couple patients anticipate majority XXX approximately still, patients we fulfillment services At of to through trends first Product we going QX, are ago. is these will very we the of were end early process. the just fundamentally on the RYZUP dynamic. their use LUMRYZ place in a riser and stronger with a they than of

that additional and process is beginning with specialist to are offices increased sleep RYZUP. More spend getting enrollment the are important to patients experience

million Currently, securing Now to transition we where in progress lives. to that's the payers, over for XXX approximately covered nice BMS continue the insured of lives policies XX% representing totally mine. to were segue coverage strong a make coverage broad commercially

key place plans. regional in with added Aetna policies in recently like with insurers, several addition We and national coverage to state Cigna, and

to position. status Currently, within in zinc GPO a moved formularies is We completed X, the where also preferred January importantly, will nonpreferred CVS a LUMRYZ LUMRYZ be commercial contract XXXX. effective

generally are from for specialist feedback positive been they've success with rate pleased been reimbursement seeing. progress. offices has with importantly, payer our We sleep very And the early very

a These first set foundation our events have great launch. for

to date. with with committee, more and we the updates on improving in to trends As offices for prouder collective more and be lives providing from patients of the grow, along not We LUMRYZ could forward to look our of and we've the LUMRYZ efficiency future progress and getting our continue started the LUMRYZ payers. demand to We covered the narcoleptic team staying see calls. on work bringing seen teams

And turn discuss Tom? over to our now I to financials. call will Tom the

Thomas McHugh

we generated that I'll September ending XX-Q. note XX, are financial to the revenue and levels our it the total since $X continuously available XXXX. X June net in third the the the We're that of demand, million began we inventory report revenue And pleased during consistently million Richard. full to estimated we was that results and quarter press $X.X quarter. third release of channel. in X the XXXX, between quarter, in exited as the in weeks in for We're you, of including monitoring launch course Thank

and GAAP of $XX.X $X.X million Turning expenses. amortization. to $XX for stock-based We million the in XXXX, compensation expecting XX, expenses a expenses September After R&D the of adjusting to fourth noncash expenses cash and the quarter which operating SG&A are during million includes $XX charges million of reported to in for items, for million expenses depreciation we quarter. range costs And the quarter million. $XX.X operating of be of costs. of includes cash total these ended $X.X and operating currently million were Operating $XX operating

With exited the a sheet, balance position. respect to strong in QX we

if year. XXXX, securities, August had million of A as the $XX second commitment a tranche which required tranche royalty XXXX. As are the of received cash, million draw $XX we financing marketable second be we of first we million XX, this $XX is equivalents $XXX.X $XX net available in the million quarterly of could September million and the secured cash while from earlier includes not to June achieved we of reminder, And XX, tranche. by $XX revenue available, million

and reimbursed we X,XXX look X,XXX LUMRYZ. from ahead, As we treated patients approximately plans cash current based expectations flow operations there on with when being we achieve can are believe, breakeven that to

ongoing launch study, us, Our cost a impact expectations number taking support IH versus account currently of Actual requirements. initiatives, LUMRYZ for expectation ongoing demand, planning resources structure future available the LUMRYZ. could these of assumptions, as an is to assumptions, into capital addition such growth to and including results regarding in patient of to net capital pricing our

in convertible effective of notes And a on of paydown, the final debt debt was sheet million as October. settled note, of September cash now the free And XX, sheet. at on the tranche that debt. completely had of beginning balance at we last is with balance shown remaining This approximately convertible $XX

to for turn I'll And remarks. closing now the call Greg back

Gregory Divis

all successful execute We foundation on supported are you, Thank Tom. our LUMRYZ, our continuing to believe and of strong laser-focused has on initial our priorities. we launch

been to made living continued even has believe this Our you thank we've and forward execution to to future significant look of treatments our lives inception narcolepsy, providing in updates goal and on look support progress for provide the those that We the our more progress. positively and of since area impacting Avadel and we launch can patients. forward transform with your

And with that, Operator? we will for open questions. call the

Operator

first Our comes Needham. question Instructions] from Fadia [Operator Ami from

Ami Fadia

the nice update I the X quick X on Congrats or launch. have on questions.

you talk patients enrollment us in maybe more from more you're seeing the patients? And are where color at color or can give can which these give coming in new Firstly, some they're from terms whether of some coming there? us about rate If you on RYZUP?

Gregory Divis

Yes. to? Ami. Richard, Thanks, do you want

Richard Kim

RYZUP. there X about into when pieces then interest gave fantastic next it's to have on our about the Yes, we actual And X super into are And about launch, see come been an Ami. really months, update patients the specialized. XXX pleased Thanks, that board. rolled first that in we're months XXX

momentum. good really to holistically, start think launch. Maybe about we So as the

a say The described patients seen fleet we see about we of we And of really of in who trends sort the see to X but which value bolus what we haven't of many clinical influx months. offices, first eight. we follow-up, really when of thing would course every yet X we one as forward, seen proposition of regular going the really haven't the as I an more think specialists, have of about is being sort is when sort seen to

just sort continue So sort of start we of forward, about think we for continued to rights. see to going demand steady when

we catalysts think much sort know that act future, coming it's should as And up the so for execution January. continue lot also help we also we've changes very as are have the on to our November, account We December, can also, we we to obviously have coverage something that as holidays for. contract MSR But seen go get do of GPO we the focus say, policy activation. in as into us when earlier, -- and occurred, I just sought we CVS our they as preferred patient will things to remains going that work to with well.

sort experienced more with Now coming majority oxybated the far of to patient And speaking types of mix or the naive. the twice-nightly well. seeing oxybates currently which the consistently the coming from patients. as from in thus we're see in previously through we from previously -- discontinued to segments up patients. launch, tending

the it more pleased do, So far. always been does real. all so made deal it's There's their super It's but the for army, we've us. we can awesome to progress be we're that in of with

Ami Fadia

when into over payer Great. coverage we should currently you some us see just could XXX maybe And million the time sense the the coverage about How of expand. where remaining? front, lives. we talked having about then give think on And frame -- insured XXXX

Richard Kim

that's getting patients really Yes, therapy. get because selfish. sure. we as covered gateway many the onto want can We're possibly as pretty lives We to

you the PBMs to then have contracts process GPO major with underneath pull through you we the -- that. signed, general So get get is

doing the intent the zinc that now been CBS well. contract ESA the we've under as So or both contract,

third one as growing lives MSR United always long we go goods. The there. good Optum as here made fully we've of And well. the takes covered anticipate forward very lives. sort is we It But our progress a

we of seeing. full And been sort maybe launch has feedback providers be rate that think through surprised are how pleasantly marketplace the we quarter I this played the from coverage and the where is in be to they're impressive. being hear will mean, I So reimbursement our out what first with general pretty

the of like of going sort forward. right our looking grow lives and to upward to covered sort So of our metrics, we're many

Operator

next [Operator Instructions] Andrew question Jefferies. with from Sai Our comes

Unknown Analyst

Just to It's congrats say going well. to well. myself wanted as very great the launch really see

like on first So in looks essentially you X,XXX question the sign-ups treatment. it getting conversion XXX the got quarter, rate,

the you prepared So loosely will like rate, said RYZUP. conversion majority speaking, seems from in it I or think And take. XX% a remarks, convert the give

fair XX% it that going meaningfully assume conversion moves to is forward? rate So up

would November patients were these how and bolus, of leading a onetime Just the X, make that And not to want cut up to as indicators even numbers are if moving things up and signed KPIs of then today, are the seeing secondly, more those treated, you to sure right. another take you're look?

Gregory Divis

Yes. Thanks, Andrew.

answer Here's questions. how I can those

the terms majority the to it's for of on in little have been First XX%, patients. conversion that patients we've your our our is the therapy at rates system off, in of is majority, oranges for apples time really what XX% a to and is seen least the who of certainly some period certainly bit. not and commentary

proxy would what early we we're right expect XX% launch. in of So seeing the the terms on in not as currently

that's and patients But the a in we beneficial reimbursed progress improve to number whatnot of payer important on the obviously, to majority those continue on has of really seeing made And been converting converting to payer coverage and decisions therapy want to front the us are majority drug. advances. a on on and certainly to

your to QX we've Secondly, go how whether people on growth and think we continue more look. does -- comment -- about part I to see the therapy early more continue. of Again, seen the and enrollments

good we're a mean, we And that I making we So knowing really progress and fronts. to where across yes, whole all pleased there's feel more we lot the we're sit where do, but sit I really think today.

Operator

Partners. from question comes with Goodman Our Leerink Marc next

Guofang Li

Marc. is This the for line on Rudy

So I a regarding question dynamic have your here. patient

of from patients most first-gen reaching that products. mentioned you activate So

switch these are to Ziva? who your you've who are previously and what patients, who discontinue? treated feedbacks from What the are and strategy been oxybate-naive patients hearing Just penetrate curious especially from those

Richard Kim

about think was on that patient the when I majority conversations those had talked our we patient of patients the from we for prepared oxybate. early sideways. gave switching represents Yes, are source the one the far, from narratives that Thanks first-generation many of The about about we've as in Yes. thus question. remarks,

we that, years mid-afternoon be product. of couple tend new to diagnosed They on. had They And one -- ago, shorter a we've early looking on of gone their period a where time, treatment. even the patients for adopters to who switching, a the for of insights more of to early from of the be for lot tend

patients So that that the had seen rate far. Mixall surprise, thus we to on we've fact haven't a we the coming have

about we base, going physician volume. make concentrated then when our And thing the is and about about entire think nice X,XXX a really prescribers, treaters our XX% the forward, very it's universe, execution as we the up of narcolepsy X,XXX think

So those the naive are offices that people we're and as well. switch these discontinued are same in patients generally opportunities seeing the where

is sort So sort seen a on the of and also uptick patient journey, well. the it nice previously both depends I discontinued where the but what we've in physician we've of is patients think the their as seen

strategy So of X the from sort growth we're and segments. very just our pull-through coming to pleased of all see patient

Gregory Divis

Yes.

well patients rate the X.X are diagnosed today I a think, on that targets. around offices are average extent, annual XX% X,XXX diagnosed, in per are a existing newly who in those average or also bit than is The truly of just year, there to those X newly our math has patients it's meaningfully year. some Rudy, primary therapies who per patients of because more target and equation are as

So ordinary those course. will continue in to again, come the

those early a are manifestation of, are But launch, of new who well. therapy new more starts. you're those think LUMRYZ kind who for the As of potential starts seeing around for in just in math coming on as and opportunities of importance messaging they as I we certainly in, than are the the come intervention equation also

Guofang Li

color you talk would gross net? Got it. helpful. Can also about to That's the very be Any helpful.

Gregory Divis

net? On the to gross .

Guofang Li

Yes.

Thomas McHugh

Yes.

reached really looking per year. a payer basis, to a forward, on haven't of target is affect the we're launch, listen, to state net we revenue be $XXX,XXX on and certainly is per contracting about stage the gross mix this So -- net. be patient we're payer going early, to to gross continues nets. as a reasonable at think steady assume to There's But we more quite done.

be to just today, clear. there not We're

on have forward we going a move that starting per steady through are reasonable schedule think per lower state assumption. We as doses. $XXX,XXX a is therapy that ultimately, a patient But patients we titration to year

Operator

Matt Thalmann. next Ladenburg comes with Kaplan from Our question

Matthew Kaplan

think I a quarter. we're in as nice

therapy? And process to percentage that detail of their way us RYZUP bit dig can more the start in Just terms in little of the more give working bit you patients through a a RYZUP wanted or of passing patients little into initiate through that the system. actually

Richard Kim

thanks for Matt, question. the

of steps. As concerned, is process into up sort really far as key X it's broken

The process checking really investigation, the is getting which of process. very patients. amount third date not first time beginning the specialty is the that the really then or ultimately the coverage including is with of to triage the is where where the be the on is be patients shipment has. form, they And is depending the not. with And when next synonymous to going, begin sort the confirm or insurance almost enrollment whether really then step benefits going they . But that the is the prescription the and phase really there's get that patient to involved out in pharmacies to

REMS one an call aligned process specialty is is whether our those maybe unique of last what as to requirement to with us pharmacies are little processes, confirm have or treatment as to for placenta there's well oxybate. So not that's a are another really bit overlay that one we LUMRYZ

X a that steps but does the longer, a key that are forward. bit the little So those adds process, really to take go little bit

what seeing can to And is for we say expect fill continue improve fulfillment And rates very do today. well. are as the time our to We're well. working lines with we the processes that

Matt? your And question second again,

Matthew Kaplan

enter initiate the point? at this and that And therapy that kind of RYZUP of percentage patients the actually then

Richard Kim

sort seen September, also is we some think we X,XXX through remaining drop process. go the the LUMRYZ. going Greg of are majority is XXX of very through had expect those that and like, we've mean, I were What right initiated maybe do announced now I we of way these math out, see we far we first the few thus where of patients the onto XXX on forward the do enrollments Yes. patients commentary initiated. or sort be XXX can to over And in also

the are the somewhere of those numbers some well. as numbers between So there is math

the to those on We as of initiated also expect majority reimbursed to be product well.

-- the that well. progress So point are most that for time but probably we've pleased are these LUMRYZ. launch, parts conversion And actually focal improve with the just goes us on made. we once rates getting we're as it's that on pleased that patients on as our like early as really the to again, the We're we're said, we believe will

Matthew Kaplan

of payers the to of preferred And still for starting in patients? to do think terms position? remain expect CVS Or move of to coming moving well position would do of you treatment kind year, a auth and of the with the through online in same prior terms the X as time similarly process, improve preferred it beginning kind other with at to month getting with as the RYZUP that the you

Richard Kim

Yes, great comment, I sort a it. think It's you Yes. Matt. of nailed

of as is well. who mix, of First improve obviously, that lives forward sort we And see to sort here the patients through go coverage with the as those we don't. versus continue coming sort covered of

yes, our that improve overall lines. actually So should time

process. more experienced with happens familiar offices well, And just our as as then more and what get the

going So dynamic, both forward. of for those both very our it's but are efficiency of us we improve see as those occurring, to drivers

Matthew Kaplan

maybe last question. then And

early expanding us early the a what prescriber very goals to expanding you new the that's is we launch. in Obviously, the the you're about base bit are have prescriber longer-term of goal, base. the so launch tell in oxybate you little But existing of in terms prescribers? a far seeing One can

Richard Kim

launch, hyper-focused prescription Right Matt. -- at XX% with have those who experience the we're who X,XXX and the on of of more Sure, the volume. oxybate now, beginning much Yes. manage total

But been on. going here's what's

prescriber. someone previously come experienced going highly more you to mix when the on, be on put office, there seen well. is that's that up the to hadn't thing going of certification see had of been process sort as oxybate we've into prescribed, in we've you want in First, their coming go never our been now who enrollment begun one But may have people that hand have called the other just and the we REMS spontaneous to who

it's to well. of focal call in our us, although weren't So people for that as it's out see maybe for nice point the sort intention woodwork to been been of not a on us coming really

going to the time on, we prescribing hyper-focused base stay more the into today. volume where come to oxybate clearly, is we're people well. goes But on the of sort see to So opportunity as as gain

Operator

from next Our comes question from Oppenheimer. Brisebois Francois

FranÃ§ois Brisebois

an Congrats you're progress and of maybe the about the you maybe in here. talked maybe each what -- Can authorized through on early we touch they're us you understand bucket first? buckets on the are and patients X going how seeing from. generic of where so help coming affecting But can far AGs terms a patient

Richard Kim

thanks question. Frank, for Yes. the

that with ones from the pleased are nice far. X as of all And it's progress buckets, enrollment the super we seeing So you so coming patient mentioned. in yes, those

And actually been So Obviously, as we also AG AGs relatively seen But the far are what's LUMRYZ. who many is patients that all segments. AG have on who on to currently from discontinued discontinues, nice are X have been new. as to overall, we coming converting have

any So predominantly the are source oxybate patients And first-generation of seeing, coming switching to also clearly, oxybate. naive well. exposed being we as is the those never AGs from from are an who

of what we source And AGs early, LUMRYZ far. it's sort seen switching would really from So these as current as still impacting to oxybate real to an concerned haven't impediment for on seen of a the where I thus get but tell are us patients. are AGs ability bit the

Operator

comes with question next from Marianne Capital. Our Belgie LifeSci

Unknown Analyst

progress. Congratulations on the

on again is Congratulations gaining question payers. CVS. my status around So preferred with

middle to regard comes quick it you of of more to expectation adults discussions color with actively can a the you oxybate? other just have status? achieve? And provide different not little it pediatric opportunity. trying and question, for payers on something detail you're both other are there theirs? the when the And what's dynamics to reasons any taking comes the preferred And if this main sodium with for to What from an your when Is Just dosing? kind night are more

Richard Kim

with Sure, the start Martha. I'll payer question.

So unencumbered to of the access yes, strategy with status to any sort has been oxybate sort through oxybate thus be best of far. the overall our with of the payers best have sort of at

So contracts, of goal is we've that's X forward the our thus first achieved, that far, going with well. GPO and the as what

fact have MSR the Optum United ongoing with conversations and mentioned I that the lives. we

with achieving And we've been best whatever that status So goal. thus oxalate, status, a far. is pleased for generally is thus our which is what the far, preferred very been we've

to the I'll pediatric question Jen. turn over

Jennifer Gudeman

so much in pediatrics. Thanks the for interest

We now desperate for have of waking of that That in for of night. form an the sodium heard the the up driver require indication. middle for need pediatric oxybate primary been not has does a expanded years the

to different, to whether it's adults. clinical regard needs compared the In

who children the at up the chronically it's chronically important that for an sometimes to waking typically of not The not up, one for parent, up, partner. administer are least their are it's up bed adults they waking While XX, X really wake reality if adult have to also patient dose. night middle both in the parents, to and having wake is they true to

night's support I've to with uninterrupted to it had for parents those and how never conversations of themselves. was pediatric describing supplement, submit were for an challenging happy letters have for who the sleep children

adult clinicians we've issue to option with possible. This subset For in us to as quickly to an them been regard the population What been a not has the see import they their may we they very of as question this the who is part sensitive. to bring sodium be many KOLs sodium. with as identify second sodium small discussing of to consider

Gregory Divis

X you them I going is questions it's IH?" is that. in would you in anecdotal, a every only really you to characterize pediatrics pediatrics we are doctors study to add Yes. talk it when very the to when universally, get physician regarding about would you just next to unbelievably consistent from time and it I talk about consistent, get thing are albeit which as So is going The narcolepsy, "When LUMRYZ

down those we're why going hence, paths. So

Operator

comes Amsellem Piper question next Our from from Sandler. David

David Amsellem

also for awareness one. And talk about And number -- you're DTC about how sizing lay groundwork you spend. Just force disease initiatives. that competitor a term? your with about here. you that. sales the its thinking One few Talk is can any longer View that's

another? you two Number getting expectation traction two in mix the and? mix subgroup between versus you this. have talk may one what's I And the about Can any regarding between is, forward? the your Are missed our going

Richard Kim

Thanks, David. Yes.

far at XX as we're sales force is So as today, sales concerned, representatives. your to point size

to We that team. about oxybate going right of for maybe field really opportunity prescribers, X,XXX, also size to our sort we cover against X,XXX now, representatives have XX us allow One up our X,XXX physicians. the reimbursement

oxybate-experienced would as well. our us comfortable say right is, future, say, So size getting for LUMRYZ to is current we'll benefit. I'd our using prescribers longer that our that's don't need of gives the cover what opportunity see I term, space where focal expand is. mix point sales with Longer the the term, see the foreseeable and But now, sort force. of we really pretty the I mean, to

wouldn't patient we activation here. DTC, patient to of comes and it really when sort call media it Now more

First, on we a a and narcolepsy, news rare thing any think, for condition. media good is

where really time active try patients been meet to a well. they and being plans have lot to are, as they of spend our Secondarily, digitally

through couple media other sleep targeted other sources and they Reddit, Facebook the doing sources. engagement So very well. approaches we're And we've specialist that go, about around we have where as offices in and placing been of and the a novel

would So as surgical cost shops. I our a patients approach more with little is, say, bit a than

a and is concerned, as the to is about And XX% level shows QX. even in ] NTX from as what as know historically bit though we far But you're looking a XX% prevalence NTM data the ATX little that. our [ it's

XX% has of exact use historically been actually it MTXXX. opposite the oxybate, For

of think we maybe can in I into provide insight some some trends future, the LUMRYZ more usage those increases. So as with

Operator

Our next question from comes with Knickerbocker CH. Chase

Chase Knickerbocker

ask I Just to for question. wanted -- another

QX a not therapy. the QX? look on the on Sorry within RYZUP. here were Maybe different just exited with you XXX at to What that the RYZUP within percentage patients was on way, belabor those from pull-through if point conversion that patients specifically asking specifically, the

Richard Kim

majority of enrollments were on those to patients at product. did our end going our QX the Yes. the earnings who into Chase, convert or of

dynamic. one example. on give specifics of is I'll because given some haven't the percentage you we it Now exact

in June just who patients product in who We October. have got reimbursed and enrolled shipped

X those going those quicker think the of about covered through who of lives be aren't. we So than will sort covered when lives buckets versus not,

physician process. end Our enrollments them the have get them June to of to digital path but prescribes go taking in months, well. that. LUMRYZ foresee philosophy earth several actually getting on is a we said, to as fair the going see a of If examples like we forward. unfortunately I And

dynamic. think So it's I still

every as that, should So more that the with time we majority just number increasing be from and cohort and cohort well. did, receive that

Chase Knickerbocker

do amount Is it RYZUP you X they're where start drop it that Is within time months? Is there months? there like see outs? is to X some of an on

they've Any feedback gone as with or would it whether the there's a And color difference has field patient with far sodium from the helpful. for for and quickly. be as then whether for years how experienced patients, oxybate or titrating Any been on sort anecdotal of the been first-gen versus just experiences kind there not of for has months? X not a another new

Richard Kim

Yes. new the to a of Starting patients. be tends from the titration a would sort mix. physician, for of that I say, the bit with

depending think take want side, sort their their slow on position you get sort who who up on of time to people there more the think bit I And quickly. you approach. Sometimes little to other have get that. have of that predominantly of a titrators And I to sort

bag. it's mixed bit of a been So a

Chase, sorry, first your what And was again? question

Chase Knickerbocker

trend fallouts? you clear in months some a that to see of they're small patients that start there? you there number, those dropout not see of even for number if like is really Or do been Just RYZUP, it a has a

Richard Kim

to mean, to enrollment, of tend Yes. for some bit. we're that time No, no. drop I they may getting sort where new is out a

Some of or patient. going of from necessity pathway that after may the the be medical exhaustion through

of past the again conversation in their is So time, next see may X to sort happen launches, patients we after the visit with here or those combos to their they may sleep of specialty more revisit definitely again. But to X of down. definitely, of starts start after go drop some as From rate, success by. months, period what start some gone will

Gregory Divis

But there's that just pleased cohorts, I it very Yes. with an the we're We percent your I continue majority. XXX described the would converted. to better. cohort, to question get opportunity to around as all think across that add has the

the therapies. when really And it to patient someone exit all someone end, happens. decided decides and of there has RYZUP, the denial reasons. to right? able get -- X that we X gone at the haven't is just decides then been It's not happens over, predominantly that go to or payer Which process, through going they're when to for in It

early percentage rates But from a it seen described. again, with pleased small coming as relatively we're they're people that's really conversion only and opportunities will And those knowing good that and a place. And sticking we've with already the we get on. better

Operator

Thank you. to like This comments. to concludes closing for session. Greg our I turn now Divis, question-and-answer back it would

Gregory Divis

care. forward day your Thank you, to rest of the call. and quarter and We XXXX a follow Take third our look great on thanks, up. joining everyone, and us you time for for today wish

Ami Fadia

the This does conclude program.

You may now disconnect.

Avadel Pharmaceuticals (AVDL) 8 Nov 232023 Q3 Earnings call transcript