Alkermes to Acquire Avadel for $2.1 Billion

Irish biotech Alkermes (NASDAQ: ALKS) announced plans to acquire Avadel Pharmaceuticals (NASDAQ: AVDL) in an all-cash transaction valued at up to $2.1 billion, or $20.00 per share, the companies said Wednesday.

The deal will expand Alkermes’ neuroscience portfolio by adding Lumryz, Avadel’s FDA-approved extended-release therapy for cataplexy and excessive daytime sleepiness in adults with narcolepsy.

Merger Structure and Valuation

Under the terms:

Alkermes will pay $18.50 per share in cash upfront.
Shareholders will also receive a non-transferable Contingent Value Right (CVR) worth up to $1.50 per share.
The CVR is contingent upon FDA approval of Lumryz for idiopathic hypersomnia before December 31, 2028.

The transaction is expected to close in Q1 2026, pending regulatory and shareholder approvals. Alkermes expects the acquisition to improve its topline growth and profitability immediately upon completion.

Avadel Settles Litigation with Jazz Pharmaceuticals

Before announcing the merger, Avadel reached a global settlement with Jazz Pharmaceuticals (NASDAQ: JAZZ), resolving ongoing litigation related to Lumryz.
Key terms include:

All lawsuits dismissed with prejudice
Jazz grants Avadel a global license for Lumryz
$90 million payment from Jazz to Avadel
Waiver of royalties and damages on Lumryz sales until Sept. 30, 2025
Jazz will also allow Lumryz to be marketed for new FDA-approved indications after March 1, 2028

This settlement clears a major legal hurdle ahead of Alkermes’ acquisition.

Market Reaction

Following the announcements:

Avadel (AVDL) shares rose ~5% premarket
Alkermes (ALKS) declined ~8%
Jazz Pharmaceuticals (JAZZ) traded flat

The market move reflects expectations that Avadel’s settlement improves deal certainty, while Alkermes faces short-term pressure from the acquisition cost.

Strategic Outlook

Post-merger, Alkermes will integrate Lumryz into its CNS (Central Nervous System) pipeline, enhancing its presence in sleep medicine and neuroscience. The company expects the deal to accelerate revenue growth and expand its commercial portfolio across the U.S. and Europe.