Legal troubles continue for Avanir Pharmaceuticals Inc (NASDAQ:AVNR)
Avanir Pharmaceuticals Inc (NASDAQ:AVNR) has had a mixed day in today’s trading session. It is currently trading around $4.58 and has been range bound between $4.64 and $4.53 today. Its daily average volume of shares traded is down significantly and stands at 2,200 as compared to daily average of 7258.
The lack of interest in the stock by investors is due to the continued
legal challenges Avanir Pharmaceuticals Inc (NASDAQ:AVNR) is facing on multiple fronts. One such hassle seems to be ending on a positive note to Avanir Pharmaceuticals Inc (NASDAQ:AVNR). It recently announced signing a settlement agreement with Wockhardt on patent violation litigation regarding a drug called Nuedexta. Post the handshake agreement, Wockhardt tweaked its original application and filed a truncated application to get its own generic version of Nuedexta approved. It is not clear from the available information whether either of the parties had to shell out
money to arrive at a mutually agreeable solution.
Copy cats eating into its pie
Readers should note that Avanir Pharmaceuticals Inc (NASDAQ:AVNR) launched its only in production drug Nuedexta into the US markets in 2011. Since online casino canada then company has spent a lot of time in the courtrooms trying to fend off bigger players from muscling in on their patent. In a settlement agreement which seems to conform to a well thought out strategy, Avanir settled its patent litigation with Novartis and Actavis in the past couple of months. In the near future the company will also have to face off with Impax and Par Pharmaceuticals who have filled their own applications seeking approvals for generic versions of Nuedexta. It is probably these uncertainties which are creating a doubt in the minds of investors to embrace this stock.
In terms of importance of the Nuedexta product line to Avanir Pharmaceuticals Inc (NASDAQ:AVNR) one needs to look at its 3Q13 results. The drug contributed the lion share of $19 million revenue that the company reported in its 3Q.