(Reuters) -Alkermes said on Wednesday it will acquire Avadel Pharmaceuticals in a deal valued at up to $2.1 billion, gaining an approved sleep-disorder treatment and expanding into the sleep-medicine market.
The deal gives Alkermes an entry into the sleep-medicine market with Avadel’s Lumryz, which is approved to treat cataplexy or excessive daytime sleepiness in patients aged seven and older with narcolepsy, a disorder that affects the body’s ability to regulate sleep-wake cycles.
Under the agreement, Alkermes will buy all outstanding Avadel ordinary shares for $18.50 in cash each, a 3.5% premium to Avadel’s last close.
Avadel shareholders will also receive a non-transferable contingent value right for a potential additional $1.50 per share, payable if the U.S. Food and Drug Administration grants final approval of Lumryz for idiopathic hypersomnia in adults by the end of 2028.
The combined potential per share acquisition price represents an equity value of approximately $2.1 billion.
The companies expect the transaction to close in the first quarter of 2026.
(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid)
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