08:03 AM EDT, 10/22/2025 (MT Newswires) -- Avadel Pharmaceuticals ( AVDL ) said Wednesday that it reached a global settlement of all litigation with Jazz Pharmaceuticals ( JAZZ ) , with both companies agreeing to dismiss their respective lawsuits with prejudice.

Under the terms, Jazz will make a payment of $90 million to Avadel and waive its right to receive royalties or damages on past sales of narcolepsy drug Lumryz through Sept. 30, 2025. Beginning Oct. 1, Avadel will pay Jazz ongoing royalties of 3.85% on net sales of Lumryz for narcolepsy through Feb. 18, 2036, the company said.

The settlement allows sales of Lumryz for other indications approved by the Food and Drug Administration beginning on March 1, 2028, but those sales will carry a 10% royalty through Feb. 18, 2036, Avadel said.

The settlement also provides long-term clarity on its intellectual property position and commercial rights, Avadel said.

Avadel shares were 3.4% higher in premarket trading, while Jazz was unchanged.