Avadel Pharma Announces Global Settlement Of All Litigation With Jazz Pharma

Author: Benzinga Newsdesk | October 22, 2025 05:34am

Avadel Pharmaceuticals plc (NASDAQ:AVDL), a biopharmaceutical company focused on transforming medicines to transform lives, today announced the global settlement of all litigation with Jazz Pharmaceuticals Inc. ("Jazz").

Under the primary terms of the settlement agreement, Avadel and Jazz will dismiss their respective lawsuits with prejudice. Furthermore, Jazz agrees to grant Avadel the following:

• A perpetual, worldwide license to any past, present, or future patents that could be asserted against LUMRYZ for any and all present and future indications, strengths, conditions of use, dosages, doses, dosage forms, and presentations.
• Jazz will make a payment of $90 million to Avadel and waive its right to receive royalties and/or damages on past sales of LUMRYZ through September 30, 2025.
• Jazz has agreed not to challenge the approvability of LUMRYZ for any and all present and future indications (e.g., idiopathic hypersomnia).
• Beginning no earlier than March 1, 2028, LUMRYZ can be sold for any future FDA approved indication (e.g., idiopathic hypersomnia).

Additionally, under the primary terms of the settlement agreement, Avadel agrees to grant Jazz the following:

• A perpetual worldwide, royalty-free, fully paid-up covenant not to sue pertaining to Avadel's patents in connection with Jazz's Xywav and Xyrem products for any and all present and future indications, strengths, conditions of use, dosages, doses, dosage forms, and presentations.
• As of October 1, 2025, Avadel will be obligated to pay Jazz ongoing royalties of 3.85% (subject to potential reduction to 3.75%) of net sales of LUMRYZ in narcolepsy through February 18, 2036.
• Beginning no earlier than March 1, 2028, LUMRYZ sold for any future FDA approved indication will be subject to a royalty of 10% (subject to potential reduction to 9.5%) of net sales until February 18, 2036.

This settlement provides Avadel with long-term clarity on its intellectual property position and commercial rights. With a defined pathway for LUMRYZ in idiopathic hypersomnia, including a certain entry date as early as March 1, 2028, we believe Avadel is well-positioned to advance its differentiated sleep medicines portfolio.

Further details regarding the terms of the settlement agreement can be found in the Company's corresponding 8-K that was filed with the United States Securities and Exchange Commission (SEC) on October 22, 2025.

Posted In: AVDL JAZZ