Pharma Focus Asia

Avadel Pharmaceuticals Enters into Royalty Agreement with RTW Investments

Thursday, March 30, 2023

Avadel Pharmaceuticals announced its entry into a royalty agreement with RTW Investments for up to $75 million to support the potential commercialisation of LUMRYZ™ for the treatment of cataplexy or excessive daytime sleepiness (EDS) in adults with narcolepsy. Concurrently, the company extended the maturity of $96.2 million of its convertible notes to 2027.

Under the terms of the royalty agreement, RTW will provide up to $75 million of non-dilutive synthetic royalty financing commitment to Avadel in return for tiered rate, cash royalty payments based on net sales of LUMRYZ in the U.S. RTW will receive royalty rates ranging from low to high single digits based on a certain quarterly sales threshold.

These critical financing activities, including a non-dilutive source of capital with the royalty agreement, as well as the extension of the maturity on $96.2 million provides Avadel with added financial flexibility to support the potential commercialisation of LUMRYZ for people living with narcolepsy. This investment reflects confidence in Avadel and LUMRYZ’s commercial prospects in narcolepsy.

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