Alkermes plc (ALKS) on Wednesday announced that it has agreed to acquire Avadel Pharmaceuticals plc (AVDL) in a cash transaction valued at approximately $2.1 billion.
The purchase price of $20 per share represents a 38% premium to Avadel's average share price over the previous three months.
The deal is expected to close in the first quarter of 2026 and is anticipated to be immediately accretive upon closing.
The acquisition adds Avadel's LUMRYZ, approved for the treatment of cataplexy or excessive daytime sleepiness in patients aged 7 and older with narcolepsy, to Alkermes' portfolio. LUMRYZ is projected to generate net revenues of $265-$275 million in 2025, with an estimated U.S. patient population of more than 50,000 eligible for oxybate treatment.
Under the terms of the agreement, Avadel shareholders will receive $18.50 per share in cash, along with a non-transferable contingent value right (CVR) entitling holders to a potential additional payment of $1.50 per share, contingent on final FDA approval of LUMRYZ for the treatment of idiopathic hypersomnia in adults by the end of 2028.
Richard Pops, Chief Executive Officer of Alkermes, said, "With the acquisition of Avadel, we are able to accelerate our commercial entry into the sleep medicine market as we prepare to advance alixorexton into a Phase 3 program in narcolepsy. Avadel's portfolio, commercial capabilities, and employees provide a foundation for growth in this therapeutic area."
In pre-market trading, Alkermes shares were down more than 7%. The stock had closed at $31.45, up 1.52% on Tuesday.
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