Core Insights - Alkermes plc (ALKS) has entered into a definitive agreement to acquire Avadel Pharmaceuticals (AVDL) for up to $20.00 per share in cash, totaling approximately $2.1 billion [1][7] - The acquisition is expected to close in the first quarter of 2026, pending customary closing conditions [1] - The deal represents a 38% premium to Avadel's average trading price over the past three months and a 12% premium to its closing price on October 21, 2025 [2] Acquisition Details - Alkermes will pay $18.50 per share in cash at closing, with Avadel shareholders also receiving a contingent value right (CVR) worth up to an additional $1.50 per share, contingent on FDA approval of Lumryz by the end of 2028 [4] - The acquisition will be funded through Alkermes' existing cash reserves and new debt issuance, with cash and cash equivalents of $1.05 billion as of June 30, 2025 [5] Product and Market Impact - Avadel's Lumryz is the first and only once-at-bedtime oxybate approved for treating narcolepsy, with sales of $120.6 million in the first half of 2025, reflecting a 76% year-over-year increase [8] - Lumryz's projected net revenues for 2025 are estimated to be between $265 million and $275 million, indicating strong growth potential [8] - The acquisition allows Alkermes to enter the high-growth sleep medicine market and complements its existing pipeline, particularly its orexin program [9][7] Strategic Fit - The integration of Avadel's operations is expected to generate cost synergies and enhance operational efficiency as Alkermes prepares for the potential launch of its lead orexin program, alixorexton [12] - Alkermes is also developing alixorexton for narcolepsy and idiopathic hypersomnia, with ongoing clinical trials expected to yield data in 2025 and 2026 [10][11]