Avadel Pharma Shares Fall After Split Decision in Legal Fight Over Narcolepsy Drug

01:01 PM EDT, 08/28/2024 (MT Newswires) -- Avadel Pharmaceuticals (AVDL) shares declined Wednesday after scoring a partial victory in a legal fight with Jazz Pharmaceuticals (JAZZ) over Avadel's bid to commercialize its Lumryz medication for the treatment of excessive daytime sleepiness in adults with narcolepsy.

In a ruling on Tuesday, federal Judge Gregory Williams sided with Avadel by allowing the company to continue selling Lumryz, a once-nightly version of Jazz Pharmaceuticals' Xyrem narcolepsy drug. While Williams rejected Jazz' request to block all US sales of Lumryz, he ruled Avadel cannot seek regulatory approval for the medication as a potential treatment for idiopathic hypersomnia, a sleep disorder in which persons suffer from excessive daytime sleepiness without a specific cause.

Avadel said it "vehemently" disagreed with the decision, adding it already has filed an appeal in federal court.

Jazz Pharmaceuticals said on July 31 Xyrem net sales were $62.2 million in Q2, down 61% from a year earlier.

Avadel reported earlier in August that Lumryz revenue was $41.5 million in Q2, up from $1.5 million a year earlier. Avadel also began phase 3 testing of Lumryz in patients with idiopathic hypersomnia earlier this summer.

Neither Avadel nor Jazz Pharmaceuticals responded to requests from MT Newswires seeking comment.

Price: 14.86, Change: -0.94, Percent Change: -5.95