Alkermes announced a definitive agreement to acquire Avadel Pharma in a transaction valued at up to $2.1 billion, marking a strategic expansion into the sleep medicine sector. Under the terms of the deal, Alkermes will acquire all outstanding shares of Avadel for $18.50 per share in cash, with Avadel shareholders eligible for an additional $1.50 per share contingent value right (CVR) if the FDA grants final approval for Lumryz to treat idiopathic hypersomnia by 2028. This acquisition price reflects a significant premium to Avadel's previous trading values and is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals.
The acquisition adds Avadel's FDA-approved product, Lumryz (sodium oxybate), the first and only once-at-bedtime oxybate for narcolepsy, to Alkermes' commercial portfolio. Lumryz is indicated for cataplexy or excessive daytime sleepiness in patients aged seven and older with narcolepsy, offering a differentiated treatment profile and notable growth potential in the rare disease space.
Alkermes CEO Richard Pops highlighted the transaction as a "pivotal step" in the company’s evolution, enhancing its revenue growth profile and profitability, while leveraging Alkermes’ existing operational infrastructure. The combined organization aims to accelerate development of orexin-2 receptor agonists, including ongoing phase I programs, and broaden clinical studies of Lumryz for further label expansions.
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