Core Viewpoint - Alkermes plc is making a strategic acquisition of Avadel Pharmaceuticals valued at up to $2.1 billion to enhance its position in the sleep medicine market, particularly focusing on central nervous system disorders [2][5]. Group 1: Acquisition Details - The acquisition will leverage Avadel's drug Lumryz, which treats excessive daytime sleepiness in narcolepsy patients, and aims to unlock the potential of Alkermes' late-stage pipeline [2]. - The deal values Avadel's stock at $18.50 per share, with an additional contingent value right (CVR) of $1.50 per share, contingent on FDA approval of Lumryz for idiopathic hypersomnia by the end of 2028 [3][5]. Group 2: Financial Aspects - Alkermes plans to finance the acquisition using its cash reserves and by issuing new debt [3][5]. - At the time of the acquisition announcement, Alkermes' stock price was $31.84, and it experienced a decline following the news, while Avadel's shares increased [3]. Group 3: Stock Performance - On the trading day of the announcement, Alkermes' stock was priced at $31.74, reflecting a 0.93% increase with a trading volume of 2,154,100 shares [4]. - Over the past year, Alkermes' stock has fluctuated between a high of $36.45 and a low of $25.17, with a current market capitalization of approximately $5.24 billion [4].

On Wednesday, Alkermes plc (NASDAQ:ALKS) agreed to acquire Avadel Pharmaceuticals plc (NASDAQ:AVDL) for up to $20 per share in cash, which values Avadel at approximately $2.1 billion.The deal consideration consists of $18.50 per share, payable in cash, and an additional $1.50 per share, contingent upon final FDA approval of Lumryz for idiopathic hypersomnia in adults by the end of 2028.The transaction has been approved by the boards of directors of both companies and is expected to close in the first quarte ...

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].

Alkermes (NasdaqGS:ALKS) M&A Announcement October 22, 2025 08:00 AM ET Company ParticipantsSandra Coombs - SVP Investor Relations and Corporate AffairsJoshua Reid - CFOPaul Matisse - Managing Director and Head of Biotech ResearchRichard Pops - CEODouglas Tsao - Managing Director of Equity ResearchJoseph Tong - Equity Research AssociateUmer Raffat - Senior Managing DirectorConference Call ParticipantsNone - AnalystNone - AnalystJessicca Fye - Managing Director and Equity Research AnalystBen Burnett - Equity ...