Avadel Pharmaceuticals PLC (NASDAQ:AVDL) rose 4.1% in pre-market trading on Wednesday after announcing it will be acquired by Alkermes plc (NASDAQ:ALKS) in a deal valued at approximately $2.1 billion.
Under the agreement, Alkermes will pay $18.50 per share in cash at closing. Shareholders may also receive an additional $1.50 per share through a contingent value right (CVR) if Avadel’s drug LUMRYZ receives FDA approval for idiopathic hypersomnia in adults by the end of 2028. The total potential payout of $20.00 per share reflects a 38% premium to Avadel’s three-month volume-weighted average price prior to the announcement.
The deal will add LUMRYZ — Avadel’s FDA-approved, once-nightly treatment for narcolepsy — to Alkermes’ commercial portfolio. Since its 2023 launch, the drug has gained solid market traction, with about 3,100 patients on therapy as of June 30, 2025. New patient starts have outpaced its twice-nightly competitor by more than 2:1 since July 2023, and the product is projected to generate net revenues of $265–275 million in 2025.
For Alkermes, the acquisition fast-tracks its expansion into the sleep medicine space as it prepares to advance its own narcolepsy candidate, alixorexton, into Phase 3 trials. The transaction is expected to be immediately accretive once it closes, which is anticipated in the first quarter of 2026.
“This transaction represents a compelling outcome for our shareholders and a powerful validation of our strategy, execution, commercial capabilities and the differentiated value of LUMRYZ,” said Greg Divis, Chief Executive Officer of Avadel.
Alkermes plans to fund the deal through a combination of cash on hand and new debt. The boards of both companies have approved the transaction, which is still subject to regulatory and shareholder approval.