01:01 PM EDT, 08/28/2024 (MT Newswires) -- Avadel Pharmaceuticals ( AVDL ) shares declined Wednesday after scoring a partial victory in a legal fight with Jazz Pharmaceuticals ( JAZZ ) over Avadel's bid to commercialize its Lumryz medication for the treatment of excessive daytime sleepiness in adults with narcolepsy.

In a ruling on Tuesday, federal Judge Gregory Williams sided with Avadel by allowing the company to continue selling Lumryz, a once-nightly version of Jazz Pharmaceuticals' ( JAZZ ) Xyrem narcolepsy drug. While Williams rejected Jazz' request to block all US sales of Lumryz, he ruled Avadel cannot seek regulatory approval for the medication as a potential treatment for idiopathic hypersomnia, a sleep disorder in which persons suffer from excessive daytime sleepiness without a specific cause.

Avadel said it "vehemently" disagreed with the decision, adding it already has filed an appeal in federal court.

Jazz Pharmaceuticals ( JAZZ ) said on July 31 Xyrem net sales were $62.2 million in Q2, down 61% from a year earlier.

Avadel reported earlier in August that Lumryz revenue was $41.5 million in Q2, up from $1.5 million a year earlier. Avadel also began phase 3 testing of Lumryz in patients with idiopathic hypersomnia earlier this summer.

Neither Avadel nor Jazz Pharmaceuticals ( JAZZ ) responded to requests from MT Newswires seeking comment.

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