Alkermes to Acquire Avadel Pharmaceuticals for $2.1B

By Philip Seaworth • Wednesday, October 22 10:33 • Permanent Link

Alkermes plc has announced its agreement to acquire Avadel Pharmaceuticals plc for up to $2.1 billion, with a transaction value of up to $20.00 per share in cash. The acquisition is expected to diversify Alkermes' commercial portfolio and augment its revenue growth profile with the addition of Avadel's FDA-approved product, Lumryz™ (sodium oxybate) for the treatment of cataplexy or excessive daytime sleepiness in patients over 7 years of age with narcolepsy.

Avadel's Lumryz™ has shown strong performance, with approximately 3,100 patients on therapy as of June 30, 2025, and net revenues of $265 – $275 million expected in 2025. The product has demonstrated a robust growth trajectory, with new patient starts outpacing the competition by more than 2:1 since July 2023.

The transaction is expected to be immediately accretive upon closing and represents a compelling financial and strategic opportunity for Alkermes. It positions the combined organization to accelerate innovation and expand its leadership in the development of treatments for sleep disorders and other neurological disorders.

The acquisition aligns with Alkermes' strategic evolution, providing the company with a strong foundation for growth in the therapeutic area of sleep medicine. Alkermes expects to finance the acquisition with cash on hand, supplemented by the issuance of new debt. The transaction has been approved by the boards of directors of both Alkermes and Avadel and is expected to close in the first quarter of 2026, subject to certain regulatory approvals and shareholder approvals.

Following the acquisition, Alkermes plans to host a conference call and webcast on October 22, 2025, to discuss the planned acquisition. The company's portfolio of proprietary commercial products and its pipeline of clinical and preclinical candidates in development for neurological disorders, including narcolepsy and idiopathic hypersomnia, position it as a key player in the global biopharmaceutical industry. The market has reacted to these announcements by moving the company's shares 13.1% to a price of $17.87. For more information, read the company's full 8-K submission here.

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