On December 3, 2012, Avanir Pharmaceuticals, Inc. (the "Company" or "Avanir") received a "Markman" claim construction ruling by Judge Leonard P. Stark of the United States District Court for the District of Delaware (the "Court") in Avanir's ongoing patent infringement case against Actavis South Atlantic LLC, Actavis Inc., Par Pharmaceutical, Inc., Par Pharmaceutical Companies, Inc., Impax Laboratories, Inc., Wockhardt, Ltd., Wockhardt USA, LLC, Watson Pharmaceuticals, Inc., Watson Laboratories, Inc., and Watson Pharma, Inc. (collectively, the "Defendants").

In a Markman ruling, the court determines the meaning of disputed patent terms at issue in patent litigation. Judge Stark's ruling construed five terms in the patents asserted by Avanir in the litigation. After comprehensive briefing and oral argument, Judge Stark issued an order adopting Avanir's proposed or stipulated patent term constructions.

Avanir filed suit against the Defendants in response to Abbreviated New Drug Applications ("ANDAs") filed by the Defendants seeking to market and sell generic versions of the currently approved dose of NUEDEXTAŽ prior to the expiration of U.S. patents 7,659,282, 8,227,484 and RE38,115. Avanir filed the lawsuits on the basis that the Defendants' proposed generic products infringe certain patents held by Avanir.

Although the parties intend to vigorously defend and enforce their patent rights, Avanir cannot predict timing or outcome of this action. Any adverse outcome in the litigation described above could adversely impact Avanir and its revenues.

A copy of the Court's ruling in the Markman hearing is filed herewith as Exhibit 99.1.

(d) Exhibits

Exhibit
  No.                                     Description

99.1         Memorandum Opinion, filed December 3, 2012, issued by The United
             States District Court for the District of Delaware

* * *