Avadel Stock Rises After Acquisition Offer By Alkermes

• Alkermes will buy Avadel for up to $20 per share.
• The consideration of $20 values Avadel at about $2.1 billion.
• The deal is expected to close in the first quarter of 2026.
   

Alkermes plc (ALKS) and Avadel Pharmaceuticals plc (AVDL) on Wednesday said that the companies have entered into a definitive agreement under which Alkermes will acquire Avadel for up to $20 per share.

The consideration of up to $20 values Avadel at about $2.1 billion and represents a premium of 12% from the stock’s last closing price on Tuesday.

How Is The Deal Expected To Impact Alkermes?

The total per share consideration includes $18.50 per share, payable in cash at closing, in addition to a contingent value right entitling holders to a potential additional cash payment of $1.50 per share.

The deal has been approved by the board of directors of both companies and is expected to close in the first quarter (Q1) of 2026. The deal is expected to be accretive upon closing, Alkermes said. The transaction includes Avadel’s Lumryz for the treatment of cataplexy or excessive daytime sleepiness in patients over 7 years of age with narcolepsy, thereby accelerating Alkermes’ entry into the sleep medicine market.

What Are Retail Investors Saying?

AVDL stock is up 4% on Wednesday morning. On Stocktwits, retail sentiment around AVDL stock jumped to ‘extremely bullish’ from ‘bearish’ territory over the past 24 hours, while message volume rose to ‘extremely high’ from ‘normal’ levels.

Avadel launched Lumryz in 2023 and about 3,100 patients are on the therapy as of June 30, the companies noted. Avadel expects net revenues of between $265 million and $275 million in 2025.

What Execs Have To Say?

The company expects the deal to support Alkermes' portfolio including ALKS 4510 and ALKS 7290 which are currently in early-stage studies. It is also expected to support the advancement of clinical studies to support potential label expansion opportunities for Lumryz currently in late-stage trial in patients with idiopathic hypersomnia.

“With the acquisition of Avadel, we are able to accelerate our commercial entry into the sleep medicine market at a critical inflection point as we prepare to advance alixorexton into a phase 3 program in narcolepsy.” – Richard Pops, CEO, Alkermes.

Alkermes expects to finance the acquisition with cash on hand, supplemented by the issuance of new debt.

AVDL stock is up by 77% this year and by 36% over the past 12 months. 

Read also: Tesla To Recall Nearly 13,000 Vehicles In US, But Retail Has Its Eyes Set On Q3 Earnings

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