By Sriparna Roy (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 […]
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Alkermes enters sleep medicine market with $2.1 billion Avadel deal

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By Sriparna Roy
(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.
Alkermes is also studying its experimental drug alixorexton for narcolepsy and idiopathic hypersomnia, a condition that causes excessive daytime sleepiness despite a full night’s sleep. The company plans to initiate a global late-stage program in narcolepsy early next year.
The acquisition of Avadel enables us to enter the sleep medicine market now, and establish our presence in the space ahead of the potential launch of alixorexton, said Alkermes CEO Richard Pops.
Under the agreement, Alkermes will buy all outstanding Avadel ordinary shares for $18.50 in cash each. Avadel shares rose 3.5%, while Alkermes fell 2% in early morning trading.
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 acquisition price of $20 per share represents a premium of about 12% to Avadel’s closing price, valuing the company at about $2.1 billion.
“The modest premium makes this a largely affordable deal that does not overextend the balance sheet,” said RBC Capital Markets analyst Leonid Timashev.
Alkermes expects to finance the purchase with cash on hand and new debt; it had about $1.05 billion in cash, cash equivalents and total investments as of June 30, 2025.
About 3,100 patients were on Lumryz as of June 30, 2025, with 2025 net revenue expected at $265 million to $275 million.
The companies expect the transaction to close in the first quarter of 2026.
(Reporting by Sriparna Roy in Bengaluru; Editing by Tasim Zahid)