Alkermes plc has announced plans to acquire Avadel Pharmaceuticals plc in a $2.1 billion all-cash deal, marking a major strategic move to expand its presence into the fast-growing sleep medicine market.
Under the terms of the agreement, Alkermes will pay up to $20 per share for Avadel — a 38% premium to Avadel’s three-month average trading price and a 12% premium to its last closing price on October 21, 2025. The transaction, approved by both companies’ boards, is expected to close in the first quarter of 2026.
The acquisition adds Avadel’s FDA-approved therapy LUMRYZ™ (sodium oxybate) — the first and only once-at-bedtime treatment for cataplexy or excessive daytime sleepiness in patients aged 7 and older with narcolepsy — to Alkermes’ commercial portfolio. Since its 2023 launch, LUMRYZ has achieved strong market momentum, with approximately 3,100 patients on therapy as of June 2025 and annual revenues projected between $265–$275 million.
Richard Pops, CEO of Alkermes, said the acquisition represents a “pivotal step” in the company’s evolution. “With Avadel, we accelerate our entry into sleep medicine at a critical inflection point as we prepare to advance alixorexton into Phase 3 for narcolepsy,” Pops said. “This transaction enhances our revenue growth profile and is expected to be immediately accretive.”
Greg Divis, CEO of Avadel, called the agreement “a compelling outcome” for shareholders and patients alike. “Alkermes shares our passion for innovation and improving the lives of people with narcolepsy. Together, we can continue building on the success of LUMRYZ and advance treatments for central disorders of hypersomnolence,” he said.
The acquisition gives Alkermes a commercial foothold in sleep disorders and complements its late-stage pipeline targeting orexin 2 receptor agonists for narcolepsy and idiopathic hypersomnia. It also provides Avadel’s established commercial infrastructure and expertise in rare diseases — key assets for Alkermes’ future product launches.
The deal is expected to deliver immediate financial accretion and operational efficiencies, while positioning Alkermes as a leading player in sleep and central nervous system therapies. The transaction is anticipated to close following customary regulatory approvals.