Avanir Short-Sale Bets Rise Before Oct. 30 FDA Ruling

Investors are making a record number of bets against Avanir Pharmaceuticals Inc. shares and pushing options prices to a four-year high before U.S. regulators rule on the drugmaker’s proposed neurological therapy by Oct. 30.

Avanir, based in Aliso Viejo, California, is seeking approval of the drug, AVP-923, to reduce bouts of involuntary laughing and crying among patients who have suffered brain injuries or have multiple sclerosis or Lou Gehrig’s disease, also known as amyotrophic lateral sclerosis.