Alkermes Raises Offer To Acquire Avadel In Deal Worth Up To $22.50 Per Share

(RTTNews) - Alkermes plc (ALKS) and Avadel Pharmaceuticals plc (AVDL) on Wednesday said they have agreed to the terms of an increased offer under which Alkermes will acquire Avadel for up to $22.50 per share.

The revised proposal includes $21.00 in cash plus a non-transferable contingent value right (CVR) that could provide an additional $1.50 per share if the U.S. Food and Drug Administration (FDA) grants final approval of LUMRYZ for idiopathic hypersomnia in adults by the end of 2028.

The updated offer values Avadel at up to approximately $2.37 billion, including the potential milestone payment, and the transaction is expected to close in the first quarter of 2026.

Both companies also executed an amendment on November 18, to the definitive transaction agreement originally signed on October 22.

Avadel had previously disclosed an unsolicited proposal from H. Lundbeck A/S on November 14 that it initially deemed likely to be a "Company Superior Proposal," a determination its board reaffirmed on November 17. Following Alkermes' increased offer on November 18 and a reassessment with advisers, the board concluded that the Lundbeck proposal no longer qualifies as a Company Superior Proposal under the agreement.

J.P. Morgan is serving as exclusive financial advisor to Alkermes, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and McCann FitzGerald LLP providing legal counsel.

Avadel shares rose 1.57% in pre-market trading after closing at $22.94 on Tuesday, while Alkermes closed at $29.26, down 0.24%.