Why Alkermes' $2.1 Billion Avadel Buyout Was 'Very Confusing' — At First

Group 1: Acquisition Details - Alkermes has agreed to acquire Avadel Pharmaceuticals for up to $2.1 billion, with Avadel's stock valued at $18.50 per share and an additional contingent value right of $1.50 per share tied to FDA approval of Lumryz by the end of 2028 [1][3]. - The acquisition is aimed at accelerating Alkermes' entry into the sleep medicine market and enhancing its late-stage pipeline focused on central disorders of hypersomnolence [2][4]. Group 2: Market Reaction - Following the announcement, Alkermes' stock decreased by more than 1% to $31, while Avadel Pharmaceuticals' stock increased by 3.5% to $18.50 [4]. Group 3: Analyst Insights - RBC Capital Markets analyst Leonid Timashev indicated that the acquisition aligns with Alkermes' strategic pivot into the sleep space and reflects confidence in upcoming data for their orexin treatments [4].