Avadel says court requires 3.85% of Lumryz sales go to Jazz

As previously disclosed, on May 12, 2021, Jazz Pharmaceuticals (JAZZ) filed a formal complaint initiating a lawsuit in the United States District Court for the District of Delaware against Avadel Pharmaceuticals (AVDL). 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 to pay a future ongoing royalty of 3.85% on sales of Lumryz to Jazz through expiration of Jazz’s U.S. 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,” the company disclosed in a regulatory filing today.