Hedge fund ASL Strategic Value Fund is calling for a board shakeup at Avadel Pharmaceuticals, accusing the company of mismanaging the rollout of its narcolepsy drug Lumryz and squandering a significant commercial opportunity, according to a report by Reuters.
In a letter to shareholders on Monday, ASL criticised Avadel’s inability to convert a meaningful share of sodium oxybate users to Lumryz, a once-nightly treatment it calls “best-in-class.” The fund estimates the company missed out on $600m–$800m in potential revenue and urged shareholders to replace the current board at the 29 July annual meeting.
ASL, which holds roughly $15m in Avadel shares, also called on the company to engage an investment bank to explore monetising Lumryz, especially given its potential in broader indications like idiopathic hypersomnia.
Avadel responded by stating it has actively engaged with major shareholders and is focused on maximising the value of Lumryz. The company also noted a recent legal win, with a US court affirming the FDA’s position that Lumryz’s once-nightly dosing is clinically superior to rivals.
