Court ruling removes ‘last binary risk’ for Avadel, says H.C. Wainwright

H.C. Wainwright analyst Oren Livnat notes that the DC District Court ruled in Avadel’s (AVDL) favor in the Jazz (JAZZ) vs. FDA and Avadel case, where Jazz sought to have Lumryz’s FDA approval rescinded. The court denied Jazz’s motion for summary judgement and granted FDA and Avadel’s cross-motion, allowing the approval to stand, along with the recent Lumryz supplemental pediatric population approval, and while the decision is appealable, the firm views the judge’s ruling as “decisive and convincing.” The firm, which adds that it has “repeatedly highlighted that this was the last ‘binary’ risk in our view,” and thinks the ruling should remove a substantial investor sentiment overhang, reiterates a Buy rating and $27 price target on Avadel Pharmaceuticals shares.