Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

On August 13, 2008, Avanir Pharmaceuticals (the "Company") received a staff determination letter from the Listing Qualifications Department of the NASDAQ Stock Market indicating that the Company fails to comply with the $1.00 minimum bid price requirement for continued listing on the NASDAQ Global Market set forth in NASDAQ Marketplace Rule 4450(a)(5). In accordance with Marketplace Rule 4450(e)(2), the Company has a cure period of 180 calendar days, or until February 9, 2009, to regain compliance by having the bid price of its common stock close at $1.00 per share or more for a minimum of 10 consecutive business days.
If the Company does not regain compliance with Marketplace Rule 4450(a)(5) by February 9, 2009, NASDAQ will provide written notification that the Company's common stock may be delisted. At that time, the Company may appeal NASDAQ's decision to a Listing Qualifications Panel pursuant to the Marketplace Rule 4800 series. Alternatively, the Company may consider applying to transfer the listing of its common stock to the NASDAQ Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 4310(c), other than the minimum bid price requirement of Marketplace Rule 4310(c)(4). If its application were approved, the Company would be afforded the remainder of a second 180 calendar day compliance period, or until about August 9, 2009, to regain compliance with the $1.00 minimum closing bid price requirement while its common stock trades on the NASDAQ Capital Market.

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