- ASL Strategic Value Fund urges Avadel Pharmaceuticals (AVDL, Financial) shareholders to vote against all director nominations at the upcoming Annual Meeting.
- ASL proposes a new strategy involving the distribution of a contingent value right (CVR) from lawsuits against Jazz Pharmaceuticals.
- Criticism focuses on missed opportunities and management failures affecting shareholder value and revenues.
ASL Strategic Value Fund, a significant shareholder of Avadel Pharmaceuticals plc (AVDL), has issued an open letter urging all shareholders to vote against the company's director nominees at the 2025 Annual General Meeting scheduled for July 29. This call to action underscores ASL's dissatisfaction with Avadel's current management and strategic direction.
ASL highlights the ongoing failure of Avadel's management to maximize the potential of LUMRYZ, a sodium oxybate product deemed clinically superior by the FDA. Despite FDA approval and an orphan drug designation for a new indication, management has yet to capitalize on this asset, resulting in significant loss of potential revenue.
Furthermore, ASL emphasizes the potential financial recovery from six pending lawsuits against Jazz Pharmaceuticals, projected to exceed $1 billion. The fund proposes the distribution of a contingent value right (CVR) to Avadel's shareholders to leverage these legal proceedings.
The open letter criticizes Avadel's management for failing to enhance shareholder value and calls for replacing current board members with those more aligned with shareholders' interests. The letter also raises concerns about previous vote miscounts and calls for an impartial election monitor to ensure fair voting procedures at the upcoming meeting.
