Court Orders Avadel CNS To Pay 3.85% Ongoing Royalty To Jazz Pharma On LUMRYZ Sales Through 2036 Amid Patent Dispute Over 782 Patent

Author: Benzinga Newsdesk | September 17, 2025 10:57am

As previously disclosed, on May 12, 2021, Jazz Pharmaceuticals, Inc. ("Jazz") filed a formal complaint initiating a lawsuit in the United States District Court for the District of Delaware (the "Court") against Avadel CNS Pharmaceuticals, LLC ("Avadel CNS"), a wholly owned subsidiary of Avadel Pharmaceuticals plc (the "Company" or "Avadel"). In the complaint, Jazz alleged LUMRYZ™ will infringe at least one claim of certain patents. On August 27, 2024, the Court issued an opinion and order granting Jazz's motion for an ongoing royalty on the sale of LUMRYZ, pending additional briefing on the appropriate royalty rate, which closed on September 23, 2024. On September 15, 2025, the Court issued an opinion and order requiring Avadel CNS to pay a future ongoing royalty of 3.85% on sales of LUMRYZ to Jazz through expiration of Jazz's U.S. Patent No. 11,147,782 ("the '782 Patent") on February 18, 2036. Avadel disagrees with the underlying jury decision regarding the validity of the ‘782 Patent and plans to continue contesting that decision and any related royalty obligation. Avadel has and will continue to accrue the royalty as well as recognize liability for same on the balance sheet.

 

Posted In: AVDL JAZZ