Avadel Pharmaceuticals Shareholders Urged to Vote Against Director Nominees Amid Value Creation Concerns

ASL Strategic Value Fund, a significant Avadel Pharmaceuticals shareholder, urges shareholders to vote against the company's director nominees at the 2025 annual general meeting. The fund proposes distributing a contingent value right to shareholders to receive potential proceeds from six lawsuits against Jazz Pharmaceuticals, and calls on the board to retain an investment bank to monetize the value of Avadel's asset LUMRYZ. The fund criticizes the current management team for failing to create shareholder value over the past five years.

ASL Strategic Value Fund, a significant shareholder of Avadel Pharmaceuticals plc (NASDAQ: AVDL), has called upon the company's shareholders to vote against all director nominees at the 2025 annual general meeting. The fund, which holds approximately $15 million worth of Avadel shares, has cited the company's mishandling of the launch of its key drug, Lumryz, as a reason for its stance [1].

The investment firm alleges that Avadel missed out on hundreds of millions of dollars in potential revenue due to the poor management of Lumryz's launch. ASL Strategic Value Fund plans to vote its stake against all of Avadel's director nominees at the company's annual meeting scheduled for late July [2].

In addition to its voting recommendation, the fund has proposed distributing a contingent value right (CVR) to shareholders to receive any and all proceeds from six lawsuits currently pending against Jazz Pharmaceuticals, Inc. One of these lawsuits seeks damages in excess of $1 billion [3].

The fund has also reiterated its demand that Avadel hire an investment bank to explore strategic alternatives, including a potential sale of the company. The fund believes that the company's best-in-class asset, Lumryz, has significant value that is not being fully realized under current management [3].

Avadel's stock has seen its price rise by 16.4% over the past year, despite the biopharma sector's overall weak performance. The SPDR S&P Biotech ETF has fallen by 9.3% over the same period, while the S&P 500 has gained 5.2% [2].

References:
[1] https://www.investing.com/news/stock-market-news/avadel-pharmaceuticals-faces-board-challenge-from-investor-asl-strategic-value--report-93CH-4116266
[2] https://stocktwits.com/news-articles/markets/equity/avadel-pharmaceuticals-under-fire-investor-reportedly-demands-board-ouster-sale-talks-1-b-in-damages/chmZReWRRe7
[3] https://www.businesswire.com/news/home/20250627862428/en/ASL-Strategic-Value-Fund-Issues-Open-Letter-to-Avadel-Shareholders