Avadel Pharmaceuticals PLC. (NASDAQ:AVDL) lost 10.67% in the previous trading session here is the reason why the stock is hitting new lows. The pharmaceutical company has also set records right regarding its corporate restructuring activities, which have been under massive speculation. According to the company’s interim Chief Executive Officer, Greg Divis, the restructuring will add more value to the FT218.
The once-nightly formulation of sodium oxybate is in the Phase III stage of its development. Divis says that this far it is the most promising asset to the company. “If approved, we believe FT218, with once-nightly dosing, will provide a significant improvement for patients over the current standard-of-care,” he states.
The restructuring plans marks will help in restoring Avadel’s financial health
Avadel’s zeal is to renew and restore the company’s financial health. The idea of restructuring was a result of an increasing need to preserve capital. It is also a way of creating a new pathway, which will enhance shareholder’s value. The company carried out a comprehensive review of the corporate strategy and the current business. This is according to the Chairman of the Board of Directors Geoffrey Glass.
That said Avadel is optimistic of being able to make cost reductions saving close to $75 million in 2019. The focus remains in corresponding hospital products and particularly FT218, treatment of excessive daytime sleepiness (EDS) and Cataplexy. The company says it has engaged third-party experts who will fast – track the evaluation of the ongoing clinical development program of FT218. The restructuring will eventually affect the company’s workforce because it will reduce by more than 50%.
Avadel products focus on the central nervous system (CNS)
The Dublin headquartered company is so fixated about the needs of millions of people suffering from Narcolepsy. The exit of NOCTIVA due to its non – performance has also triggered the need to refocus. NOCTIVA has been disappointing since its launch despite massive investment in it. It has not shown signs of supporting the company’s calls for growth, hence the decision to exit it.
A majority of Avadel’s products are directed towards the central nervous system (CNS). This is one of the many areas; the pharmaceutical industry seems to have neglected. However, Avadel says it is committed to helping patients adhere to the use of better treatment if they have to see better results from their conditions.