Alkermes plc has increased its acquisition proposal for Avadel Pharmaceuticals plc to a maximum of $2.37 billion, comprising $2.10 billion in cash and a contingent value right (CVR) of $270 million. The CVR, worth $1.50 per share, will be paid only if the U.S. Food and Drug Administration approves LUMRYZ for idiopathic hypersomnia by the end of 2028. The transaction is expected to close in the first quarter of 2026, following the earlier $2.10 billion offer announced on October 22 2025 and the competitive bid from Lundbeck that prompted Alkermes to raise its terms.
The deal gives Alkermes immediate access to LUMRYZ, a once‑nightly oxybate approved for narcolepsy, and the commercial infrastructure that supports its sales and marketing. This complements Alkermes’ own orexin‑2 receptor agonist pipeline, notably alixorexton, positioning the company as a stronger contender in the growing central disorders of hypersomnolence market. By acquiring Avadel, Alkermes accelerates its entry into sleep medicine and gains a proven product that can be leveraged across its existing portfolio.
Avadel’s recent performance underscores the value of the transaction. In the third quarter of 2025, the company generated $77.5 million in net product revenue from LUMRYZ, a 55% year‑over‑year increase. Alkermes, meanwhile, reported $98.2 million in revenue for the same period, up 32% from the prior year, and has raised its 2025 outlook in late October. To fund the cash component, Alkermes secured a bridge loan facility of up to $1.51 billion, ensuring liquidity for the transaction.
Investors reacted to the higher offer and the increased certainty of a closing. Avadel’s shares moved 1.57% in pre‑market trading, and Bank of America disclosed a stake in the company, having purchased shares at prices between $22.93 and $23.10. The competitive bidding environment, particularly the unsolicited proposal from Lundbeck, drove Alkermes to enhance its terms, thereby strengthening investor confidence in the deal’s completion.
Alkermes CEO Richard Pops described the acquisition as a pivotal step in the company’s strategic evolution, emphasizing that it accelerates commercial entry into sleep medicine at a critical inflection point and is essential to becoming a leader in central disorders of hypersomnolence. Avadel’s board, after evaluating the Lundbeck proposal, determined Alkermes’ revised offer to be superior, citing the more favorable CVR structure and the stronger strategic fit.
The transaction positions Alkermes as a more competitive player in the sleep‑medicine arena, is expected to be accretive to its financials, and lays the groundwork for future growth in a high‑potential therapeutic area.
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