H.C. Wainwright says buy Avadel selloff, court ruling ‘unequivocal win’

H.C. Wainwright analyst Oren Livnat says shares of Avadel Pharmaceuticals (AVDL) are lower today after the District Court of Delaware issued a ruling yesterday denying competitor Jazz Pharmaceuticals’ (JAZZ) motion for a preliminary injunction blocking Avadel’s marketing of Lumryz for narcolepsy, but also blocking Avadel from seeking approval for an idiopathic hypersomnia indication until the infringed patent expires in 2036. The market seems to be interpreting this development negatively, but H.C. Wainwright sees this as an “unequivocal win in terms of taking a major binary or catastrophic risk off the table,” the analyst tells investors in a research note. The firm says many investors had feared a surprise injunction ruling could have blocked Avadel from continuing to market Lumryz altogether. It also sees a good chance of the Federal Circuit vacating the hypersomnia indication ruling on appeal. Wainwright keeps a Buy rating on Avadel Pharmaceuticals with a $27 price target. The stock in midday trading is down 6% to $14.79.