Alkermes plc completed its acquisition of Avadel Pharmaceuticals plc on February 12 2026, finalising a transaction valued at approximately $2.1 billion in cash and stock. The deal adds Avadel’s FDA‑approved sodium oxybate product, LUMRYZ, to Alkermes’ commercial portfolio and brings a dedicated sleep‑medicine commercial organization under Alkermes’ control.
Alkermes financed the purchase with roughly $775 million of cash from its balance sheet and a $1.525 billion term loan due in 2031. The company expects to repay the debt quickly using cash flows generated by LUMRYZ, positioning the combined entity to maintain a healthy leverage profile while expanding its revenue base.
LUMRYZ, first approved by the FDA on May 1 2023 for adult narcolepsy patients and later approved for pediatric patients aged seven and older on October 16 2024, is a once‑at‑bedtime oxybate that eliminates the need for a second nighttime dose. The product’s strong uptake since launch underpins the expectation that the acquisition will be accretive to Alkermes’ 2026 earnings.
Strategically, the acquisition accelerates Alkermes’ entry into the sleep‑medicine market and provides a commercial platform for its late‑stage orexin program, including alixorexton. By integrating Avadel’s commercial organization, Alkermes aims to leverage its neuroscience expertise to expand beyond its existing proprietary portfolio and capture additional market share in narcolepsy and related disorders.
The transaction received shareholder approval on January 12 2026 and was sanctioned by the Irish High Court on February 10 2026, after the initial offer of $18.50 per share in cash plus a $1.50 contingent value right was increased to $21.00 in cash plus the CVR. These approvals completed the regulatory and shareholder milestones required for the deal’s consummation.
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