On Wednesday, Alkermes plc (NASDAQ:ALKS) agreed to acquire Avadel Pharmaceuticals plc (NASDAQ:AVDL) for up to $20 per share in cash, which values Avadel at approximately $2.1 billion.
The deal consideration consists of $18.50 per share, payable in cash, and an additional $1.50 per share, contingent upon final FDA approval of Lumryz for idiopathic hypersomnia in adults by the end of 2028.
The transaction has been approved by the boards of directors of both companies and is expected to close in the first quarter of 2026.
Strategic Rationale
The planned acquisition adds Avadel’s FDA-approved product, Lumryz (sodium oxybate) for cataplexy or excessive daytime sleepiness in patients over 7 years of age with narcolepsy, to Alkermes’ commercial portfolio.
This strategic move accelerates Alkermes’ entry into the sleep medicine market and enhances its ability to unlock the full potential of its late-stage development pipeline focused on central disorders of hypersomnolence.
Also Read: Avadel Shareholder Seeks Board Shakeup, Citing Millions Lost On Lumryz
The transaction is expected to be immediately accretive.
Since launching Lumryz in 2023, Avadel has successfully built and scaled a commercial organization that has driven strong demand.
Approximately 3,100 patients were on Lumryz therapy as of June 30, 2025, with new patient starts outpacing the twice-nightly mixed-salts competitor by more than 2:1 since July 2023.
The company expects net revenues of $265 million–$275 million in 2025 and an estimated population of over 50,000 oxybate-eligible narcolepsy patients in the United States.
The financial strength and capabilities of the combined organization will support a broad development strategy for Alkermes’ portfolio of orexin 2 receptor agonists, including ALKS 4510 and ALKS 7290, which are currently in phase 1 studies, as well as potential label expansion opportunities for Lumryz.
On Wednesday, Avadel Pharmaceuticals plc (NASDAQ:AVDL) announced the global settlement of all litigation with Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ). The companies will dismiss their respective lawsuits with prejudice.
Jazz agreed to grant Avadel a perpetual, worldwide license to any past, present, or future patents that could be asserted against Lumryz.
Jazz will pay $90 million to Avadel and waive its right to receive royalties and/or damages on past sales of Lumryz through September 30, 2025.
Jazz has agreed not to challenge the approvability of Lumryz for any present and future indications (e.g., idiopathic hypersomnia).
Beginning no earlier than March 1, 2028, Lumryz can be sold for any future FDA-approved indication.
Price Action: AVDL stock is up 3.97% at $18.58, and ALKS stock is up 1.29% at $31.85 at the last check on Wednesday.
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