Key takeaways:

• Alkermes will acquire Avadel for $18.50 per share, plus a potential $1.50 contingent payment tied to LUMRYZ’s FDA approval for idiopathic hypersomnia by 2028.
• The transaction, expected to close in Q1 2026, is valued at approximately $2.1 billion and will be financed through cash and new debt.
• LUMRYZ, approved in 2023 as the first once-at-bedtime oxybate for narcolepsy, has surpassed its twice-nightly competitor in new patient starts.
• The acquisition accelerates Alkermes’ entry into the sleep medicine market and strengthens its late-stage orexin 2 receptor agonist portfolio, led by alixorexton.
• Alkermes plans to leverage Avadel’s commercial infrastructure to support upcoming product launches in narcolepsy and idiopathic hypersomnia.
• The combined company expects operational efficiencies and immediate revenue accretion following deal completion.

Alkermes plc has entered into a definitive agreement to acquire Avadel, an acquisition that will add Avadel’s FDA-approved product, LUMRYZ (sodium oxybate) for the treatment of cataplexy or excessive daytime sleepiness in patients over 7 years of age with narcolepsy, to the former’s commercial portfolio. 

Alkermes’ lead drug candidate, the orexin receptor agonist alixorextonan, has shown promise in clinical trials as a potential new therapy for disorders of hypersomnolence. This strategic move to acquire Avadel accelerates Alkermes’ entry into the sleep medicine market and enhances its ability to unlock the full potential of its late-stage development pipeline focused on central disorders of hypersomnolence. 

The transaction is expected to leverage Alkermes’ existing commercial expertise and operational infrastructure and add new capabilities in rare disease.

Since launching LUMRYZ in 2023, Avadel has built and scaled a commercial organization that has driven demand. Approximately 3,100 patients were on LUMRYZ therapy as of June 30, 2025, with new patient starts outpacing the twice-nightly mixed-salts competitor by more than 2:1 since July 2023. 

“This transaction represents a pivotal step in Alkermes’ strategic evolution. 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,” says Richard Pops, Alkermes CEO, in a release. “Avadel’s innovative portfolio, commercial capabilities, and dedicated employees provide a strong foundation for growth in this therapeutic area. Enabled by our strong balance sheet, this all-cash transaction enhances our revenue growth profile and is expected to be immediately accretive, reinforcing our commitment to delivering long-term value for shareholders.”

Greg Divis, Avadel CEO, says in a release, “This transaction represents a compelling outcome for our shareholders and a powerful validation of our strategy, execution, commercial capabilities, and the differentiated value of LUMRYZ. We’ve built a company deeply committed to transforming the lives of people living with narcolepsy, and I’m incredibly proud of what our team has accomplished. Alkermes shares our passion for innovation and patient impact and, together, we will continue this important work on behalf of people living with central disorders of hypersomnolence.