Here's Why Avadel Pharmaceuticals Dropped Today
Shares of Avadel Pharmaceuticals (NASDAQ: AVDL) are down 10.3% at 12:28 p.m. after the biotech announced that the Food and Drug Administration approved its nutrition drug Nouress for neonatal babies, although the timing of the launch remains uncertain.
FDA approvals usually cause shares to go higher, not lower, but it isn't clear when -- or even if -- Avadel will launch Nouress, which contains cysteine hydrochloride that's injected. The company said it's "evaluating the timing and process for a commercial launch" of the drug and also noted that a competitor was granted a U.S. patent earlier this year for a competing cysteine hydrochloride product.
Reading between the lines, Avadel appears to be worried about Nouress infringing on its competitor's patent. Complicating the matter further, Avadel has a patent of its own covering Nouress through March 2039.
Source Fool.com
