Avadel announces global settlement of all litigation with Jazz Pharmaceuticals

Avadel Pharmaceuticals (AVDL) (AVDL announced the global settlement of all litigation with Jazz Pharmaceuticals (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 $90M to Avadel and waive its right to receive royalties and/or damages on past sales of LUMRYZ through September 30; Jazz has agreed not to challenge the approvability of LUMRYZ for any and all present and future indications. Beginning no earlier than March 1, 2028, LUMRYZ can be sold for any future FDA approved indication. 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, Avadel will be obligated to pay Jazz ongoing royalties of 3.85% 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% of net sales until February 18, 2036.