Jazz’s toehold on sleep market slips with tentative Avadel FDA approval

Shares of Avadel Pharma climbed nearly 10% in morning trading Tuesday after the company announced it had received tentative approval for Lumryz, a formulation of sodium oxybate for the treatment of excessive daytime sleepiness.

Although it met the safety and efficacy standards set by the U.S. Food and Drug Administration, Avadel’s Lumryz still has another hurdle to pass before it can hit the commercial market – a legal one. Avadel and Jazz Pharma, a leader in treating sleep disorders, are locked in a patent dispute.