Avadel Specialty Pharmaceuticals Files Chapter 11 Bankruptcy Protection
Have you suffered losses investing in Avadel Pharmaceuticals? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Avadel Specialty Pharmaceuticals, a subsidiary of Ireland-based Avadel Pharmaceuticals, reportedly filed for bankruptcy protection on February 7, 2019, according to a press announcement.
Avadel Specialty Pharma’s reported financial challenges were in connection with sales of the drug, Noctiva, which reportedly launched in March 2018 as the first FDA-approved treatment for nighttime urine overproduction, according to BioPharma Dive.
The drug reportedly had very little success, posting only $1.2 million in 2018 sales and leading Avadel to put its subsidiary into bankruptcy as part of a larger corporate restructuring. Its parent company reportedly changed directions, completing a Phase 3 trial of FT218, a treatment for cataplexy and excessive daytime sleepiness in patients with narcolepsy.
The company stated in regulatory filings that “the bankruptcy route would allow for a quick and efficient exit from commercializing Noctiva,” according to an article in BioPharma Dive.
Recovery of Investment Losses
The problem with biopharmaceutical stocks such as Avadel Specialty Pharmaceuticals is that they typically involve a high degree of risk. The research and development process for pharma companies often involves costly and lengthy clinical testing trials that yield specific data. If the expected data or end points are not met, the stock can drop drastically.
Without a strong understanding of the company and its basic operations, investors may be looking at serious losses.
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly recommending high-risk biopharma stocks, like Avadel Pharmaceuticals to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you have concerns regarding investment losses in Avadel Pharmaceuticals, please call the securities attorneys at The White Law Group for a free consultation at 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.