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Investing.com -- Avadel Pharmaceuticals PLC (NASDAQ:AVDL) stock rose 4.1% in premarket trading Wednesday after the company announced 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, with an additional potential payment of $1.50 per share through a contingent value right (CVR) if Avadel’s LUMRYZ receives FDA approval for idiopathic hypersomnia in adults by the end of 2028. The total potential consideration of $20.00 per share represents a 38% premium to Avadel’s weighted average trading price over the three months prior to the announcement.
The acquisition will add LUMRYZ, Avadel’s FDA-approved once-nightly treatment for narcolepsy, to Alkermes’ commercial portfolio. Launched in 2023, LUMRYZ has gained significant market traction with approximately 3,100 patients on therapy as of June 30, 2025, and new patient starts outpacing its twice-nightly competitor by more than 2:1 since July 2023. The drug is expected to generate net revenues of $265-275 million in 2025.
For Alkermes, the deal accelerates its entry into the sleep medicine market as it prepares to advance its own narcolepsy treatment candidate, alixorexton, into Phase 3 trials. The transaction is expected to be immediately accretive upon closing, 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 finance the acquisition with cash on hand and new debt. The boards of both companies have approved the transaction, which remains subject to regulatory approvals and Avadel shareholder approval.
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