ASL Strategic Value Fund Letter to Avadel Pharmaceuticals (AVDL: NASDAQ) Board of Directors
ASL Strategic Value Fund, a long-term investor in Avadel Pharmaceuticals (AVDL), has sent a letter to the company's Board expressing concerns over management's performance and calling for immediate action to maximize shareholder value. The letter criticizes the management's handling of Lumryz launch and poor communication, highlighting significant stock underperformance with YTD -21.69% vs NASDAQ's -0.74% in 2025.
The fund emphasizes two key assets: Lumryz, a once-nightly sodium oxybate formulation, and pending lawsuits against Jazz Pharmaceuticals. The main lawsuit, scheduled for November 2025, claims $1.5 billion in damages (potentially reaching $4.5 billion after trebling) or approximately $45 per share. Management projects peak Lumryz sales of $1 billion in narcolepsy, potentially generating $6 per share in earnings, with additional upside from Idiopathic Hypersomnia indication pending Phase III trial completion.
ASL Strategic Value Fund, un investitore a lungo termine in Avadel Pharmaceuticals (AVDL), ha inviato una lettera al Consiglio di Amministrazione dell'azienda esprimendo preoccupazioni sulle performance della gestione e chiedendo azioni immediate per massimizzare il valore per gli azionisti. La lettera critica la gestione del lancio di Lumryz e la cattiva comunicazione, evidenziando un significativo underperformance del titolo con un -21,69% dall'inizio dell'anno rispetto al -0,74% del NASDAQ nel 2025.
Il fondo mette in evidenza due attivi chiave: Lumryz, una formulazione di sodio oxybate da assumere una volta per notte, e le cause legali pendenti contro Jazz Pharmaceuticals. La causa principale, programmata per novembre 2025, richiede $1,5 miliardi di danni (potenzialmente arrivando a $4,5 miliardi dopo un triplo risarcimento) o circa $45 per azione. La gestione prevede vendite massime di Lumryz di $1 miliardo per la narcolessia, potenzialmente generando $6 per azione di utili, con ulteriori possibilità di guadagno legate all'indicazione di ipersomnia idiopatica in attesa del completamento della sperimentazione di Fase III.
ASL Strategic Value Fund, un inversor a largo plazo en Avadel Pharmaceuticals (AVDL), ha enviado una carta a la Junta Directiva de la empresa expresando preocupaciones sobre el desempeño de la gestión y pidiendo una acción inmediata para maximizar el valor para los accionistas. La carta critica la gestión del lanzamiento de Lumryz y la mala comunicación, destacando un rendimiento de acciones significativamente bajo con un -21,69% hasta la fecha frente a un -0,74% del NASDAQ en 2025.
El fondo enfatiza dos activos clave: Lumryz, una formulación de oxybate de sodio que se toma una vez por noche, y las demandas pendientes contra Jazz Pharmaceuticals. La demanda principal, programada para noviembre de 2025, reclama $1,5 mil millones en daños (potencialmente alcanzando $4,5 mil millones después de triplicarse) o aproximadamente $45 por acción. La gestión proyecta ventas máximas de Lumryz de $1 mil millones en narcolepsia, generando potencialmente $6 por acción en ganancias, con un potencial adicional de la indicación de hipersomnia idiopática pendiente de finalizar el ensayo de Fase III.
ASL Strategic Value Fund는 Avadel Pharmaceuticals (AVDL)의 장기 투자자로서 회사 이사회에 경영 실적에 대한 우려를 표명하고 주주 가치를 극대화하기 위한 즉각적인 조치를 촉구하는 서한을 보냈습니다. 이 서한은 Lumryz 출시와 커뮤니케이션 부족에 대한 경영진의 처리를 비판하며, 2025년 현재 NASDAQ의 -0.74%에 비해 -21.69%라는 상당한 주식 저조 실적을 강조합니다.
펀드는 두 가지 주요 자산을 강조합니다: 하루에 한 번 복용하는 소듐 옥시베이트 제형인 Lumryz와 Jazz Pharmaceuticals에 대한 미완료 소송입니다. 주요 소송은 2025년 11월에 예정되어 있으며, $15억 달러의 손해 배상을 요구하고 있습니다(세 배로 증가할 경우 $45억 달러에 이를 수 있음) 또는 약 $45의 주당 손해 배상입니다. 경영진은 기면병에 대한 Lumryz의 최고 판매가 $10억 달러에 이를 것으로 예상하며, 주당 $6의 수익을 창출할 가능성이 있으며, 단계 III 시험 완료 중인 특발성 과수면증 지표로부터의 추가 상승 가능성도 있습니다.
ASL Strategic Value Fund, un investisseur à long terme dans Avadel Pharmaceuticals (AVDL), a envoyé une lettre au conseil d'administration de l'entreprise exprimant ses préoccupations quant aux performances de la direction et appelant à des actions immédiates pour maximiser la valeur pour les actionnaires. La lettre critique la gestion du lancement de Lumryz et une mauvaise communication, mettant en évidence une sous-performance significative des actions avec -21,69% depuis le début de l'année contre -0,74% du NASDAQ en 2025.
Le fonds souligne deux actifs clés : Lumryz, une formulation de sodium oxybate à prendre une fois par nuit, et les poursuites judiciaires en cours contre Jazz Pharmaceuticals. La poursuite principale, prévue pour novembre 2025, réclame 1,5 milliard de dollars de dommages-intérêts (pouvant atteindre 4,5 milliards après un triplement) ou environ 45 dollars par action. La direction projette des ventes maximales de Lumryz de 1 milliard de dollars pour la narcolepsie, générant potentiellement 6 dollars par action de bénéfice, avec un potentiel supplémentaire pour l'indication d'hypersomnie idiopathique en attente de l'achèvement de l'essai de phase III.
ASL Strategic Value Fund, ein langfristiger Investor in Avadel Pharmaceuticals (AVDL), hat einen Brief an den Vorstand des Unternehmens geschickt, in dem er Bedenken hinsichtlich der Leistung des Managements äußert und sofortige Maßnahmen zur Maximierung des Aktionärswertes fordert. Der Brief kritisiert das Management im Umgang mit dem Launch von Lumryz und die mangelhafte Kommunikation, wobei eine signifikante Underperformance der Aktie mit -21,69% YTD im Vergleich zu -0,74% des NASDAQ im Jahr 2025 hervorgehoben wird.
Der Fonds betont zwei wichtige Vermögenswerte: Lumryz, eine einmal nächtliche Natrium-Oxybat-Formulierung, und die anhängigen Klagen gegen Jazz Pharmaceuticals. Die Hauptklage, die für November 2025 angesetzt ist, fordert 1,5 Milliarden USD an Schadensersatz (möglicherweise bis zu 4,5 Milliarden USD nach einer Verdreifachung) oder etwa 45 USD pro Aktie. Das Management prognostiziert Spitzenumsätze von Lumryz von 1 Milliarde USD bei Narkolepsie, was potenziell 6 USD pro Aktie an Gewinnen generieren könnte, mit zusätzlichen Chancen durch die Indikation Idiopathische Hypersomnie, die auf den Abschluss der Phase-III-Studie wartet.
- Lumryz has FDA-recognized clinical superiority over other sodium oxybate formulations
- Potential $1.5-2 billion in peak revenue combining narcolepsy and IH indications
- Projected $10-13 earnings per share at peak sales
- Significant lawsuit value potential of up to $4.5 billion ($45 per share) against Jazz Pharmaceuticals
- Stock significantly underperforming: -21.69% YTD 2025 vs NASDAQ -0.74%
- 5-year return of only +15.66% vs NASDAQ +128.1%
- Management's failed Lumryz launch execution
- Poor investor communication affecting credibility
The following is a letter that ASL Strategic Value Fund sent to the Board of Directors of Avadel Pharmaceuticals (NASDAQ:AVDL):
February 10, 2025
Mr. Geoff Glass
Chairman, Board of Directors Avadel Pharmaceuticals Plc
16640 Chesterfield Grove Road, Suite 200
Dear Geoff: As you are aware, the ASL Strategic Value Fund has been a long-term investor in Avadel Pharmaceuticals. Our ownership predates most of the directors on the current Board. We have been big believers in Lumryz, a drug that the FDA has found on numerous occasions to be clinically superior to all other formulations of sodium oxybate. Lumryz brings significant benefits to narcolepsy patients. The launch of this superior drug should have allowed the company to rapidly dominate the narcolepsy market against its competitors. This launch should have been the catalyst for the company to finally create significant shareholder value for its investors. Unfortunately, the current management team has failed to capitalize on this opportunity. Additionally, they seem incapable of conveying a coherent investment case to investors. These mis-steps with the roll out of Lumryz and the constant mis-communication over the past year with investors has destroyed significant shareholder value and management's credibility. As a result, our stock continues to underperform against its peers and against the popular market indexes as it has for the past five years. The Board has failed in its duty to hold this management team responsible for their continued failures and dismal performance. It is beyond time that this Board acts upon its fiduciary duty and maximize the values for the benefit of all shareholders. This can only be accomplished by immediately retaining an investment bank to explore all possible alternatives including the outright sale of the company and distributing to existing shareholders a contingent value right which will receive the recovery from the numerous pending lawsuits against Jazz Pharmaceuticals.
Avadel Stock Performance Against NASDAQ
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5 Year return |
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The company currently has two principal assets. The first being Lumryz, a revolutionary once a night formulation of sodium oxybate. The second asset is the potential recovery from a number of law suits filed against Jazz Pharmaceuticals for delaying and obstructing the launch of Lumryz. These damage claims are quite significant and the most important suit will go to trial November of 2025. This suit alleges that Jazz placed their REMS patent in the Orange Book to delay the launch of Lumryz, and was able to do so for eighteen months. Avadel claims that this action by Jazz will prevent it from generating eighteen months of peak revenues, or approximately
It is time for the Board of Directors to take action to maximize the values inherent in this company for the benefit of its long-suffering shareholders. The Board must immediately retain an investment bank to find a buyer for the company. During the latest investor call on January 8th 2025, management continued to state that they believe that peak sales from Lumryz in just the narcolepsy market should be north of
On this same call, management also stated that its current Phase III trial for a new indication, Idiopathic Hypersomnia (IH) should be completed during the second half of 2025. An FDA approval (when and if granted) for IH would allow the company to market Lumryz to an additional 40,000 patients. If the company were successful in capturing
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In addition to monetizing the value of our business, the company should issue to existing shareholders a contingent value right (CVR) for the potential recovery from the outstanding litigation that is ongoing against Jazz Pharmaceuticals. Any potential recovery from these litigations should be distributed to the shareholders. The current launch has failed in delivering a significant return to the company's shareholders. It is now time to monetize these two significant assets to create value for the owners of this company.
As always, I am available to discuss these matters.
Steven Braverman
Managing Partner
View source version on businesswire.com: https://www.businesswire.com/news/home/20250210373964/en/
Steven Braverman
Managing Partner
ASL Strategic Value Fund
203/738-5836
Source: ASL Strategic Value Fund
FAQ
What is the potential peak revenue for Avadel's (AVDL) Lumryz in both narcolepsy and IH markets?
How much could AVDL shareholders receive from the Jazz Pharmaceuticals lawsuit?
What is AVDL's stock performance compared to NASDAQ in 2025?
When will AVDL complete its Phase III trial for Idiopathic Hypersomnia (IH)?
What are the projected earnings per share for AVDL at peak Lumryz sales?
