Alkermes to Acquire Avadel for up to $2.1 Billion, Adds LUMRYZ

Alkermes plc (NASDAQ:ALKS) announced an agreement to acquire Avadel Pharmaceuticals plc for total consideration of up to $2.1 billion. The transaction involves a payment of $18.50 per ordinary share in cash at closing, plus a non-transferable contingent value right (CVR) of $1.50 per Avadel share, contingent upon specific milestones.

The CVR payment is conditional on two events occurring before December 31, 2028: approval by the U.S. Food and Drug Administration (FDA) of an application for LUMRYZ for the commercial marketing and sale in the United States for the treatment of idiopathic hypersomnia in adults, and the dismissal with prejudice of certain claims by the U.S. District Court for the District of Delaware related to Jazz Pharmaceuticals. The acquisition price, assuming the CVR payout, represents a premium of approximately 38% to Avadel's weighted average trading price over the three months prior to October 22, 2025, and a 12% premium to its closing price on October 21, 2025.

Alkermes stated the acquisition augments its revenue growth profile and diversifies its commercial portfolio with LUMRYZ (sodium oxybate), Avadel's FDA-approved product for cataplexy or excessive daytime sleepiness in patients with narcolepsy. Richard Pops, Chief Executive Officer of Alkermes, stated the transaction "accelerates our commercial entry into the sleep medicine market" and "enhances our revenue growth profile and is expected to be immediately accretive". Avadel reported that approximately 3,100 patients were on LUMRYZ therapy as of June 30, 2025, with expected net revenues of $265 million to $275 million for 2025.

The acquisition, which has been unanimously recommended by both Alkermes' and Avadel's boards of directors, is expected to close in the first quarter of 2026. Completion is subject to customary conditions, including Avadel shareholder approval, sanction by the Irish High Court, and U.S. antitrust clearances. Alkermes expects to finance the acquisition with cash on hand, supplemented by a fully underwritten $1.2 billion senior secured bridge term loan facility from JPMorgan Chase Bank.